AZ Rev Stat § 38-953 (2021)
2021 Arizona Revised Statutes|Title 38 - Public Officers and Employees|§ 38-953 - Supplemental option

38-953.  Supplemental option A. A supplemental defined contribution plan is in addition to and does not replace an employee's existing state defined benefit retirement plan. B. Except as provided in subsection C,  any contributing member of an eligible group that establishes a supplemental defined contribution plan as authorized by this article may participate in the supplemental defined contribution plan. Participation in any plan established by an eligible group authorizes the member's employer to make reductions or deductions in the member's compensation. The employer shall submit any reports required by the plan. Any compensation deferred under the plan shall be included as regular compensation or compensation for the purpose of computing the retirement and pension benefits earned by any employee participating in the plan. C. If the Arizona state retirement system establishes a supplemental defined contribution plan and an employer member of the Arizona state retirement system elects to participate in the supplemental defined contribution plan,  any employee member of the employer who meets the eligibility requirements that are prescribed by the board for participation in the supplemental defined contribution plan and that are selected by the member's employer may participate in the supplemental defined contribution plan. D. An employee shall make an election to participate in a supplemental defined contribution plan within two years after the employee first meets the eligibility requirements to participate in the plan. An election to participate in a plan is irrevocable and continues for the remainder of the employee's employment with the employer. E. If an employee elects to participate in a plan pursuant to this section,  the employee shall contribute a prescribed amount of the employee's gross compensation,  which shall be a percentage of the employee's gross compensation,  a fixed dollar amount,  an amount prescribed in the plan or some other definitive amount that may not be modified or revoked by the employee. As the plan prescribes,  an employer may annually increase or decrease the employee contributions in increments of one per cent up to the maximum allowed by law or the employee may make a one-time irrevocable election of the employee's contribution amount. An employee is not required to contribute under this subsection in order to qualify for an employer match under subsection F or G. The employer match may accrue from any program established by the employer. F. An employer may elect to match the contributions made by the employee to the supplemental defined contribution plan at a rate determined by the employer. The employer shall pay this amount to the supplemental defined contribution plan in which the employee participates. G. An employer may elect to match the contributions made by the employee to any other program established by the employer under the internal revenue code,  including any plan established under internal revenue code section 401(a),  403(b) or 457,  at a rate determined by the employer. The employee shall determine whether the employer pays the matching contribution to the 401(a),  403(b),  or 457 plan in which the employee participates,  to the supplemental defined contribution plan in which the employee participates or to any other plan established by the employer. H. The rate of the employer match under subsection F or G shall be determined at the beginning of that employer's budget cycle and shall terminate at the end of that budget cycle. If an employer elects to match under subsection F or G,  the employer shall make the contributions.