reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-895.01 - Compensation limitation; adjustments; definition

38-895.01.
Compensation limitation;  adjustments;  definition
A. The annual compensation of each member taken into account for purposes of the plan shall not exceed the following:
1. Beginning January 1,  1996 through December 31,  2001,  $150, 000.
2. Except for members hired on or after July 1,  2018,  beginning January 1,  2002,  $200, 000. The board shall adjust the $200, 000 annual compensation limit under this paragraph at the same time and in the same manner as adjusted by the United States secretary of the treasury under section 401(a)(17)(B) of the internal revenue code. The adjustment under this paragraph for a calendar year applies to annual compensation for that calendar year.
3. For members who are hired on or after July 1,  2018,  $70, 000. The board shall adjust the $70, 000 annual compensation limit under this paragraph as prescribed in subsection C of this section. Notwithstanding the adjustments made under subsection C of this section,  the limit under this paragraph,  as adjusted by the board,  may not exceed the maximum compensation limit of section 401(a)(17) of the internal revenue code,  as adjusted by the United States secretary of the treasury.
B. If compensation under the plan is determined on a period of time that contains fewer than twelve calendar months,  the compensation limit for that period of time is equal to the dollar limit for the calendar year during which the period of time begins,  multiplied by the fraction in which the numerator is the number of full months in that period of time and the denominator is twelve.
C. Beginning in fiscal year 2021-2022,  and every third fiscal year thereafter,  the board shall adjust the annual compensation limit specified in subsection A,  paragraph 3 of this section by the average change in the probation wage index as determined pursuant to this subsection. The board shall annually publish the probation wage index in January. The annual compensation limit adjustment under this subsection for a calendar year applies to the annual compensation for that calendar year. To determine the probation wage index:
1. The administrative office of the courts shall provide to the board pay scales for the month of July for the classifications of probation officers,  by county,  annually in July.
2. The board shall determine the weighted average of the change in the top of the pay scale for probation officers. The average change shall be weighted by measuring each county's total number of members divided by the total number of members of all counties represented in the probation wage index.
D. The board shall establish a probation wage index that reflects the calculation made pursuant to subsection C of this section.
E. For the purposes of this section,  " probation officers"  means the classifications of probation officers or surveillance officers or their equivalent classifications.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-896 - Taxation of pensions; exemption for contributions

38-896.
Taxation of pensions;  exemption for contributions
The participating employer contributions and the assets of the fund are exempt from state,  county and municipal taxes. Member contributions made to the fund after December 31,  1974 and subsequently withdrawn from the fund as other than a pension and benefits and pensions received by a member from the fund after December 31,  1988 are subject to tax pursuant to title 43.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-897 - Assignments prohibited; liability of fund

38-897.
Assignments prohibited;  liability of fund
A. The right of an individual to a pension,  to a refund of accumulated member contributions,  to the pension itself or to any other right accrued or accruing to any individual,  and the monies and assets of the retirement plan,  are not subject to execution,  garnishment,  attachment,  the operation of bankruptcy or insolvency law or other process of law except a qualified domestic relations order and are unassignable except as may be otherwise specifically provided.
B. Any attempt to anticipate,  alienate,  sell,  transfer,  assign,  pledge,  encumber,  charge or otherwise dispose of any right provided in subsection A is void. The fund is not liable in any manner for or subject to the debts,  contracts,  liabilities,  engagements or torts of any person entitled to these rights.
C. This section does not exempt employee benefits of any kind from a writ of attachment,  a writ of execution,  a writ of garnishment and orders of assignment issued by a court of record as the result of a judgment for arrearages of child support or for child support debt.
D. A person who defrauds the plan or who takes,  converts,  steals or embezzles monies owned by or from the plan and who fails or refuses to return the monies to the plan on the board's written request is subject to civil suit by the plan in the superior court in Maricopa county. On entry of an order finding the person has defrauded the plan or taken,  converted,  stolen or embezzled monies owned by or from the plan,  the court shall enter an order against that person and for the plan awarding the plan all of its costs and expenses of any kind,  including attorney fees,  that were necessary to successfully prosecute the action. The court shall also grant the plan a judicial lien on all of the nonexempt property of the person against whom judgment is entered pursuant to this subsection in an amount equal to all amounts awarded to the plan,  plus interest at the rate prescribed by section 44-1201,  until all amounts owed are paid to the plan.
E. Notwithstanding any other provision of this article,  the board may offset against any benefits otherwise payable by the plan to an active or retired member or survivor any court ordered amounts awarded to the board and plan and assessed against the member or survivor.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-898 - Subrogation; right of setoff

38-898.
Subrogation;  right of setoff
A. If an individual becomes entitled to a pension or other benefit payable by the retirement plan as a result of an accident or injury caused by the act of a third party,  the fund is subrogated to the rights of the individual against the third party to the extent of fund financed benefits which the retirement plan pays or becomes liable for payment.
B. The retirement plan is entitled to the right of setoff to recover overpayments made by the retirement plan and to satisfy any claim arising from embezzlement or fraud committed by a member,  retired member,  former member,  beneficiary or other individual having a claim to benefits.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-899 - Correction of errors

38-899.
Correction of errors
The retirement plan shall correct errors in the records of the retirement plan. The retirement plan shall seek to recover overpayments and shall make up underpayments. Recovery of overpayments may be accomplished by reducing the amount of future payments so that the actuarial present value of actual payments to the recipient is equal to the actuarial present value of the payments to which the recipient was correctly entitled.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-900 - Internal revenue code qualification

38-900.
Internal revenue code qualification
The legislature intends that the retirement plan is a qualified pension plan under section 401 of the internal revenue code,  as amended,  or successor provisions of law,  and that the trust is exempt from taxation under section 501 of the internal revenue code,  as amended. The assets of the fund are held in trust for the exclusive benefit of the members and beneficiaries of the retirement plan. The board may adopt such additional provisions to the retirement plan as are necessary to fulfill this intent.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-900.01 - Statutory construction

38-900.01.
Statutory construction
A. Because the plan as enacted at a particular time is a unique amalgam of rights and obligations having a critical impact on the actuarial integrity of the plan,  the legislature intends that the plan as enacted at a particular time be construed and applied as a coherent whole and without reference to any other provision of the plan in effect at a different time.
B. The plan was established in order to provide a uniform,  consistent and equitable statewide program for those eligible corrections officers as defined by the plan. A member of the plan does not have a vested right to benefits under the plan until the member files an application for benefits and is found eligible for those benefits. An eligible claimant's right to benefits vests on the date of the member's application for those benefits or the member's last day of employment under the plan,  whichever occurs first.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-900.02 - Adjustment and refund; termination of plan

38-900.02.
Adjustment and refund;  termination of plan
A. If more than the correct amount of employer or member contributions is paid into the plan by an employer through a mistake of fact,  the board shall return those contributions to the employer if the employer requests return of the contributions within one year after the date of the overpayment. The board may not pay an employer earnings attributable to excess contributions but shall reduce the amount returned to an employer pursuant to this subsection by the amount of losses attributable to the excess contributions.
B. On termination or partial termination of the plan,  the accrued benefit of each member is,  as of the date of termination or partial termination,  fully vested and nonforfeitable to the extent then funded.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-901 - Transfers into or out of retirement plan

38-901.
Transfers into or out of retirement plan
A. A member who changes employment or transfers or is assigned to a position in which the member is no longer eligible to be a member of this plan,  because of a change in duties or otherwise,  with the same or another employer of this state or a municipality of this state participating in a different retirement system or plan,  is entitled to have all credited service transferred to the retirement system or plan applicable to the new position in accordance with article 7 of this chapter.
B. A member who begins employment with a participating employer in this plan and who has credited service from a different system or plan may transfer the prior service to this plan in accordance with article 7 of this chapter.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-904 - Death benefits; amount

38-904.
Death benefits;  amount
A. If an active or inactive member dies and no pension is payable on account of the member's death,  an amount equal to two times the member's accumulated contributions to the retirement plan is payable to the person designated by the deceased member in writing and filed with the board. If the designated person or persons do not survive the deceased member or if the designated person does not claim the benefit,  the payment is payable,  at the election of the local board,  to the designated person's nearest of kin as determined by the local board or to the estate of the deceased member. The beneficiary or person who is claiming to be the nearest of kin shall file a written application in order to receive the refund. For the purposes of this subsection,  " inactive member"  means a person who previously made contributions to the plan,  who has not retired,  who is not currently making contributions to the plan and who has not withdrawn contributions from the plan.
B. If the deceased retired or active member does not have an eligible surviving spouse or the pension of the eligible surviving spouse is terminated,  each eligible child is entitled to a child's pension. A child's pension terminates if the child is adopted. In the case of a child with a disability,  the child's pension terminates if the child ceases to be under a disability or ceases to be a dependent of the surviving spouse or guardian. The amount of the pension of each eligible child is an equal share of the amount of the surviving spouse's pension. The board shall pay the surviving minor or child's with a disability pension to the person who is the legally appointed guardian or custodian of the eligible child until the eligible child reaches eighteen years of age,  at which time the eligible child's pension shall be paid directly to the eligible child if the person remains eligible to receive the pension and is not subject to a guardianship or conservatorship due to disability or incapacity. The pension of a child with a disability who is eighteen years of age or older and who is subject to a guardianship or conservatorship due to disability or incapacity shall continue to be paid to the guardian or conservator if the child remains eligible for the pension payment.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-905.05 - Cost-of-living adjustment; members hired on or before June 30, 2018

38-905.05.
Cost-of-living adjustment;  members hired on or before June 30,  2018
A. For members hired on or before June 30,  2018,  each retired member or survivor of a retired member is eligible to receive a compounding cost-of-living adjustment in the base benefit as provided in this section. The first payment under this section shall be made immediately following the first year the cost-of-living adjustment specified in subsection C of this section is paid. The cost-of-living adjustment shall be made on July 1 each year thereafter.
B. A retired member or a survivor of a retired member shall receive annually a cost-of-living adjustment in the base benefit based on the average annual percentage change in the metropolitan Phoenix-Mesa consumer price index published by the United States department of labor,  bureau of labor statistics,  with the immediately preceding year as the base year for making the determination,  not to exceed annually two percent of the retired member's or survivor's base benefit.
C. In the first year of a member's retirement,  the cost-of-living adjustment specified in subsection B of this section shall be prorated based on the date of retirement.
D. The plan's actuary shall include the projected cost of providing the cost-of-living adjustment specified in subsection B of this section in the calculation of normal cost and accrued liability.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-905.06 - Cost-of-living adjustment; members hired on or after July 1, 2018; definition

38-905.06.
Cost-of-living adjustment;  members hired on or after July 1,  2018;  definition
A. For members who are hired on or after July 1,  2018,  each eligible retired member or survivor of a retired member may receive a compounding cost-of-living adjustment in the base benefit as provided in this section.
B. A retired member or survivor of a retired member is eligible to receive a cost-of-living adjustment under this section beginning the earlier of the first calendar year after the seventh anniversary of the retired member's retirement or when the retired member is or would have been sixty years of age.
C. A cost-of-living adjustment shall be paid on July 1 each year that the funded ratio for members who are hired on or after July 1,  2018 is seventy percent or more,  as reported in the most recent actuarial valuation.
D. An eligible retired member or survivor of a retired member shall receive annually a cost-of-living adjustment in the base benefit based on the average annual percentage change in the metropolitan Phoenix-Mesa consumer price index published by the United States department of labor,  bureau of labor statistics,  with the immediately preceding year as the base year for making the determination,  not to exceed annually the following:
1. Two percent of the retired member's or survivor's base benefit if the funded ratio for members who are hired on or after July 1,  2018 is ninety percent or more,  as reported in the most recent actuarial valuation.
2. One and one-half percent of the retired member's or survivor's base benefit if the funded ratio for members who are hired on or after July 1,  2018 is eighty percent or more but less than ninety percent,  as reported in the most recent actuarial valuation.
3. One percent of the retired member's or survivor's base benefit if the funded ratio for members who are hired on or after July 1,  2018 is seventy percent or more but less than eighty percent,  as reported in the most recent actuarial valuation.
E. The plan's actuary shall include the projected cost of providing the cost-of-living adjustment specified in subsection D of this section in the calculation of normal cost and accrued liability.
F. For the purposes of this section,  " funded ratio"  means the ratio of the market value of assets to the actual accrued liabilities.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-908 - Transfer of credited service

38-908.
Transfer of credited service
A. A member who terminates employment with an employer and accepts a position with the same or another employer participating in the plan shall have the member's credited service transferred to the member's record with the new employer provided the member leaves the member's accumulated contributions on deposit with the fund. The period not employed shall not be considered as service or credited service.
B. The new employer's account shall be credited with the member's accumulated contributions plus the additional amount,  if any,  necessary to equal the increase in the actuarial present value to the extent funded on a market value basis as of the most recent actuarial valuation of projected benefits resulting from the transfer calculated by the system's actuary using the actuarial methods and assumptions adopted by the board.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-909 - Redemption of prior service; calculation

38-909.
Redemption of prior service;  calculation
A. Except as provided in subsection B of this section,  an active member of the plan who has at least five years of credited service with the plan who had previous service in this state as an employee with an employer now covered by the plan or who had previous service with an agency of the United States government,  a state of the United States or a political subdivision of this state or a state of the United States as a full-time paid corrections officer or full-time paid certified peace officer may elect to redeem up to sixty months of any part of the prior service by paying into the plan any amounts required under subsection C of this section if the prior service is not on account with any other retirement system.
B. An active member who became a member of the plan before January 1,  2012 may redeem any amount of eligible prior service as specified in subsection A of this section without having to have accrued any minimum amount of credited service.
C. An active member who elects to redeem any part of the prior service or employment for which the employee is deemed eligible by the board under this section shall pay into the plan the amounts previously withdrawn by the member,  if any,  as a refund of the member's accumulated contributions plus accumulated interest as determined by the board and the additional amount,  if any,  computed by the plan's actuary that is necessary to equal the increase in the actuarial present value of projected benefits resulting from the redemption calculated using the actuarial methods and assumptions prescribed by the plan's actuary.
D. A member electing to redeem service pursuant to this section may pay for service being redeemed in the form of a lump sum payment to the plan,  a trustee-to-trustee transfer or a direct rollover of an eligible distribution from a plan described in section 402(c)(8)(B)(iii),  (iv),  (v) or (vi) of the internal revenue code or a rollover of an eligible distribution from an individual retirement account or annuity described in section 408(a) or (b) of the internal revenue code.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-909.01 - Purchase of service; payment

38-909.01.
Purchase of service;  payment
A member who purchases service pursuant to this article or section 38-922 or 38-924 shall make payments directly to the plan in whole or in part by any one or a combination of the following methods:
1. In lump sum payments.
2. Through an arrangement with the plan that the payments be made in installment payments over a period of time.
3. Subject to the limitations prescribed in sections 401(a)(31) and 402(c) of the internal revenue code,  accepting a direct transfer of any eligible rollover distribution or a contribution by a member of an eligible rollover distribution from one or more:
(a) Retirement programs that are qualified under section 401(a) or 403(a) of the internal revenue code.
(b) Annuity contracts described in section 403(b) of the internal revenue code.
(c) Eligible deferred compensation plans described in section 457(b) of the internal revenue code that are maintained by a state,  a political subdivision of a state or any agency or instrumentality of a state or a political subdivision of a state.
4. Subject to the limitations prescribed in section 408(d)(3)(A)(ii) of the internal revenue code,  accepting from a member a rollover contribution of that portion of a distribution from an individual retirement account or individual retirement annuity described in section 408(a) or 408(b) of the internal revenue code that is eligible to be rolled over and would otherwise be includable as gross income.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-911 - Deferred annuity; eligibility; amount; exception

38-911.
Deferred annuity;  eligibility;  amount;  exception
A. If any member who has at least ten years of credited service terminates employment for reasons other than retirement or disability,  the person may elect to receive a deferred annuity,  except that if the person withdraws the person's accumulated contributions from the plan,  all rights to a deferred annuity are forfeited. A deferred annuity is a lifetime monthly payment that is actuarially equivalent to the annuitant's accumulated contributions in the plan plus an equal amount paid by the employer and commences on application on or after the sixty-second birthday of the annuitant. The deferred annuity is not a retirement benefit and annuitants are not entitled to receive any amount prescribed by section 38-887,  38-888,  38-904 or 38-906.
B. This section does not apply to a member who becomes a member of the plan on or after January 1,  2012 and before July 1,  2018. Such a person who attains a normal retirement date is eligible for retirement and a retirement benefit even if the member terminates employment with an employer before the age requirement for normal retirement if the member attains the service requirement for normal retirement.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-912 - Civil liability; restitution or payment of fine; forfeiture of benefits; violation; classification; offset of benefits

38-912.
Civil liability;  restitution or payment of fine;  forfeiture of benefits;  violation;  classification;  offset of benefits
A. A person who defrauds the plan or who takes,  converts,  steals or embezzles monies owned by or from the plan and who fails or refuses to return the monies to the plan on the board's written request is subject to civil suit by the plan in the superior court in Maricopa county. On entry of an order finding the person has defrauded the plan or taken,  converted,  stolen or embezzled monies owned by or from the plan,  the court shall enter an order against that person and for the plan awarding the plan all of its costs and expenses of any kind,  including attorney fees,  that were necessary to successfully prosecute the action. The court shall also grant the plan a judicial lien on all of the nonexempt property of the person against whom judgment is entered pursuant to this subsection in an amount equal to all amounts awarded to the plan,  plus interest at the rate prescribed by section 44-1201,  until all amounts owed are paid to the plan.
B. If a member is convicted of,  or discharged because of,  theft,  embezzlement,  fraud or misappropriation of an employer's property or property under the control of the employer,  the member is subject to restitution and fines imposed by a court of competent jurisdiction. The court may order the restitution or fines to be paid from any payments otherwise payable to the member from the plan.
C. A person who knowingly makes any false statement or who falsifies or permits to be falsified any record of the plan with an intent to defraud the plan is guilty of a class 5 felony. If any change or error in the records results in any member or beneficiary receiving from the plan more or less than the member or beneficiary would have been entitled to receive had the records been correct,  the local board shall correct the error,  and as far as practicable shall adjust the payments in a manner that the actuarial equivalent of the benefit to which the member or beneficiary was correctly entitled shall be paid. If a member is convicted of a crime pursuant to this subsection,  section 13-713 applies.
D. Notwithstanding any other provision of this article,  the board may offset against any benefits otherwise payable by the plan to a member or survivor any court ordered amounts awarded to the board and plan and assessed against the member or survivor.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-913 - Discount rate; service purchase; transfer of service credits

38-913.
Discount rate;  service purchase;  transfer of service credits
A. Beginning July 1,  2017,  the discount rate specified in subsection B of this section applies to service purchases or transfers of service credits to the plan pursuant to the following sections:
1. Section 38-907,  subsection A or B.
2. Section 38-909,  subsection C.
3. Sections 38-921,  38-922,  38-923 and 38-924.
B. For members enrolled in the system:
1. Before July 1,  2017,  the discount rate is the assumed rate of return that is prescribed by the board.
2. On or after July 1,  2017,  the discount rate is an amount equal to the lesser of the assumed rate of return that is prescribed by the board or an amount equal to the yield on a ten-year treasury note as of March 1 that is published by the federal reserve board plus two percent. The discount rate is effective beginning in the next fiscal year,  and the board shall recalculate the rate each year.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-921 - Transfer of retirement service credits from one retirement system or plan to another retirement system or plan in this state; definitions

38-921.
Transfer of retirement service credits from one retirement system or plan to another retirement system or plan in this state;  definitions
A. An active or inactive member of a state retirement system or plan,  including the retirement system provided for in article 2 of this chapter,  the elected officials' retirement plan provided for in article 3 of this chapter,  the public safety personnel retirement system provided for in article 4 of this chapter or the corrections officer retirement plan provided for in article 6 of this chapter,  may transfer service credits from one system or plan to the member's current or former system or plan pursuant to section 38-922 if all of the following conditions are met:
1. The board governing the retirement system or plan from which the service credits are being transferred mutually agrees with the board governing the retirement system or plan to which the service credits are being transferred regarding the terms of the transfer.
2. The transfer does not cause either the retirement system or plan to which the transfer is made or the retirement system or plan from which the transfer is made to incur any unfunded accrued liabilities as a result of the transfer.
3. The member initiates the transfer by making written application to the governing board of the retirement system or plan to which the member is contributing or has contributed.
B. For the purposes of this section:
1. " Active member"  means a member who satisfies the eligibility criteria of the state retirement system or plan and who is currently making member contributions to or receiving credited service from the state retirement system or plan.
2. " Inactive member"  means a member of the state retirement system or plan who previously made contributions to the state retirement system or plan and who satisfies each of the following:
(a) Has not retired.
(b) Is not eligible for active membership in the state retirement system or plan.
(c) Is not currently making contributions to the state retirement system or plan.
(d) Has not withdrawn contributions from the state retirement system or plan.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-924 - Transfer of service credits

38-924.
Transfer of service credits
A. Service credits qualified pursuant to section 38-923 may be transferred pursuant to this section.
B. In the case of a member whose contributions remain on deposit with the prior retirement system or plan,  the following shall occur:
1. The prior system or plan shall determine the amount of the member s accumulated contribution account balance under the prior system or plan plus accumulated interest as determined by the governing body of the system or plan.
2. The system or plan to which the member is transferring shall calculate any increase in the actuarial present value of the projected benefits provided as a result of the transfer of the member's service credits. The actuary of the system or plan to which the service credits are being transferred shall perform this calculation using the actuarial method and assumptions recommended by the actuary and adopted by the governing body of the retirement system or plan.
C. If a member decides to transfer:
1. The prior system or plan shall transfer to the present system or plan the amount determined pursuant to subsection B,  paragraph 1 of this section. If the amount calculated in subsection B,  paragraph 2 of this section is greater than the amount determined in subsection B,  paragraph 1 of this section,  the transferring member shall either elect to pay the difference in order to receive all service credits earned under the prior system or plan or to accept a reduced transfer of service credits. If the member elects to pay the difference,  the amount paid shall be added to the member s accumulated contribution account balance. If the member elects to accept a reduced transfer of service credits,  the amount of service credits transferred shall be equal to the amount of service credits earned under the prior system or plan corresponding to the amount determined under subsection B,  paragraph 1 of this section multiplied by the ratio of the amount calculated under subsection B,  paragraph 1 of this section to the amount calculated under subsection B,  paragraph 2 of this section.
2. If the amount calculated in subsection B,  paragraph 2 of this section is less than or equal to the amount determined in subsection B,  paragraph 1 of this section,  the current system or plan shall credit the member with service credits under the current system or plan equal to the service credit earned under the prior system or plan corresponding to the amount determined under subsection B,  paragraph 1 of this section.
D. The retirement system or plan shall not apply service credits to the applicant s account until such time as complete payment is made to the retirement system or plan to which the applicant is transferring. On completion of the transfer provided for in this article,  the member s rights in the retirement system or plan from which the member is transferring are extinguished.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-931 - Definitions

38-931.
Definitions
In this article,  unless the context otherwise requires:
1. " Administering and investing" :
(a) Means administering,  managing,  operating,  investing and distributing the prefunding plan and its assets,  including accepting,  depositing,  holding,  investing,  reinvesting and transferring the assets of the prefunding plan.
(b) Includes employing legal services.
2. " Board"  means the board of trustees of the system.
3. " Defined benefit pension"  means the elected officials' retirement plan established by article 3 of this chapter,  the public safety personnel retirement system established by article 4 of this chapter and the corrections officer retirement plan established by article 6 of this chapter.
4. " Employer"  means an employer as defined in section 38-801,  38-842 or 38-881.
5. " Participating employer"  means an employer that is authorized and has elected to participate in the prefunding plan and whose governing body has entered into a contract with the board as provided in this article.
6. " Prefunding plan"  means the Arizona employers' pension prefunding plan established by this article.
7. " Required pension contributions"  means an employer's unfunded liability and future required contributions under the applicable defined benefit pension,  whether pertaining to a single year or multiple years.
8. " System"  means the public safety personnel retirement system.
9. " Tax-exempt status of the prefunding plan's income"  means that the prefunding plan's income is excluded from gross income for the purposes of the assessment of federal income tax under section 115 of the internal revenue code,  intergovernmental immunity or similar grounds.
10. " Trustee"  has the same meaning prescribed in section 38-848.04.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-932 - Arizona employers' pension prefunding plan

38-932.
Arizona employers' pension prefunding plan
A. The Arizona employers' pension prefunding plan is established as a special trust fund for the purpose of allowing participating employers that provide a defined benefit pension plan to their employees to prefund the employer's required pension contributions.
B. The prefunding plan and the assets held in the prefunding plan are separate and apart from:
1. The public safety personnel retirement fund and any other fund,  program or plan administered by the board.
2. Any pension prefunding plan investment accounts established pursuant to section 35-314.04 or any other section of title 35 and any pension prefunding plan monies in such accounts.
C. The prefunding plan is an integral part of this state and of the political subdivisions of this state,  performs an essential governmental function and is an entity with the power to sue and be sued. The prefunding plan is intended to be structured and administered in a manner that results in the tax-exempt status of the prefunding plan's income.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-933 - Administration and investment by the board; investment options; administrative costs

38-933.
Administration and investment by the board;  investment options;  administrative costs
A. The board shall have the sole and exclusive control of the administration and investment of the prefunding plan.
B. The board shall administer and invest the prefunding plan as provided in this article. Notwithstanding any other provision of this title,  the board shall offer each participating employer investment options for monies in the prefunding plan consisting of cost-effective,  diversified investment portfolios in publicly traded investment options that do not exceed the risk and return profiles established by the board,  consistent with the board's fiduciary duty.
C. Except as otherwise specified in this article,  the provisions of article 4 of this chapter pertaining to the administration and investment of the system,  including delegation of authority to the administrator and others persons,  supplement this article.
D. The board may keep assets of the prefunding plan separate or commingle the assets of the prefunding plan in one or more group trusts,  subject to the crediting of assets,  receipts and earnings and charging of payments to the appropriate employer.
E. All assets of and income earned on the prefunding plan shall be credited to the prefunding plan.
F. Each participating employer shall pay the reasonable administrative costs as determined by the board in its sole and absolute discretion for the administration and investment of the prefunding plan. The board shall deposit in the prefunding plan all monies received by the board for those administrative costs.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-934 - Board authorization of employer participation; employer election

38-934.
Board authorization of employer participation;  employer election
A. The board,  pursuant to the terms and conditions set by the board,  may authorize an employer to participate in the prefunding plan.
B. An employer authorized by the board may elect to participate in the prefunding plan if all of the following occur:
1. The governing body of the employer adopts a resolution requesting to participate in the prefunding plan.
2. The employer submits a written request to participate in the prefunding plan with the resolution to the administrator of the board.
3. The governing body of the employer enters into a contract with the board setting forth the terms and conditions of that employer's participation in the prefunding plan,  including reflecting or incorporating the requirements of this article and addressing funding and expenditures and actuarial,  accounting,  reporting and investment considerations.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-935 - Transfer of monies by employer

38-935.
Transfer of monies by employer
A. The board may authorize a participating employer to transfer monies into the prefunding plan. A transfer of monies into the prefunding plan shall comply with all of the following:
1. The transfer satisfies the terms of the contract between the governing body of the participating employer and the board.
2. The transfer satisfies the requirements under the applicable governmental accounting standards.
3. The transfer does not jeopardize the tax-exempt status of the prefunding plan's income.
B. Except as otherwise provided in this section and sections 38-936 and 38-937,  monies transferred by a participating employer to the prefunding plan pursuant to subsection A of this section are irrevocable and may not be refused by the board or refunded or returned to the participating employer making the transfer.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-936 - Transfer of assets out of the prefunding plan; requirements

38-936.
Transfer of assets out of the prefunding plan;  requirements
A. The board may authorize a participating employer to transfer assets out of the prefunding plan if the asset transfer complies with subsection B of this section and all of the following:
1. The transfer satisfies the terms of the contract between the governing body of the participating employer and the board.
2. The transfer satisfies the requirements under the applicable governmental accounting standards.
3. The transfer does not jeopardize the tax-exempt status of the prefunding plan's income.
B. Except as otherwise provided in section 38-937:
1. The prefunding plan assets shall be used exclusively for the purpose of paying required pension contributions and the administrative costs associated with the prefunding plan and may not be used for any other purpose.
2. A transfer of assets out of the prefunding plan shall be made solely for the purpose of transferring assets to the system to discharge the participating employer's required pension contributions to the applicable defined benefit pension.
C. The prefunding plan assets and any transfer of assets out of the prefunding plan are not subject to execution,  garnishment,  attachment,  the operation of bankruptcy or insolvency laws or other process of law and are not unassignable.
D. Except for a participating employer to the extent expressly provided in subsection A of this section,  an employee,  member,  beneficiary or other individual or person does not have any right,  title or interest in the prefunding plan or any prefunding plan assets.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-937 - Termination of employer's participation; prefunding plan termination

38-937.
Termination of employer's participation;  prefunding plan termination
A. The board may terminate the participation of a participating employer in the prefunding plan if any of the following applies:
1. The board determines that all obligations of a participating employer to pay required pension contributions in accordance with the terms of the applicable defined pension plan of the participating employer have been satisfied in full by payment or by defeasance with no remaining risk regarding the amounts to be paid or the value of the assets held in the prefunding plan.
2. A participating employer elects to cease to participate in the prefunding plan.
3. The board finds that the participating employer has failed to satisfy the terms and conditions required by this article,  by board rules or by the contract between the governing body of the participating employer and the board.
4. The prefunding plan is terminated by the board or the prefunding plan otherwise terminates.
B. If the board terminates the participation of a participating employer in the prefunding plan as described in subsection A,  paragraph 1,  2 or 3 of this section,  any assets attributable to that participating employer's transfers into the prefunding plan,  including any earnings on such assets,  after the payment of any obligation of that participating employer owed to the prefunding plan for reasonable administrative costs,  shall be transferred to the system to pay the participating employer's required pension contributions under the applicable defined benefit pension. Any remaining monies in excess of the amount necessary to satisfy the participating employer's required pension contributions shall be transferred to the participating employer only if both of the following apply:
1. The transfer does not jeopardize the tax-exempt status of the prefunding plan's income.
2. The transfer complies with the requirements under the applicable governmental accounting standards.
C. If the prefunding plan is terminated as described in subsection A,  paragraph 4 of this section,  the assets attributable to a participating employer's transfers into the prefunding plan,  including any earnings on such assets,  after the payment of any obligation of that participating employer owed to the prefunding plan for reasonable administrative costs,  shall be transferred to the system to pay the participating employer's required pension contributions. Any remaining monies in excess of the amount necessary to satisfy the participating employer's required pension contributions shall be transferred to the participating employer if the transfer complies with subsection B,  paragraphs 1 and 2 of this section.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-938 - Annual financial statements; audit

38-938.
Annual financial statements;  audit
The board shall cause the annual financial statements of the prefunding plan to be prepared in accordance with the applicable governmental accounting standards and an audit to be conducted of those financial statements by a qualified independent certified accounting firm for each fiscal year in accordance with the applicable governmental auditing standards.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-939 - Nontaxable status of prefunding plan; intent

38-939.
Nontaxable status of prefunding plan;  intent
A. Assets transferred into or out of or held in the prefunding plan and investment income on assets in the prefunding plan are exempt from state,  county and municipal taxes.
B. The legislature intends that the prefunding plan's income not be subject to federal income tax. The board may adopt additional rules,  policies and procedures as the board deems necessary or appropriate to fulfill the legislature's intent that the prefunding plan's income not be subject to federal income tax.
C. If the board receives notification from the United States internal revenue service that this article or any portion of this article will jeopardize the tax-exempt status of the prefunding plan's income,  the portion of this article that will cause the disqualification does not apply.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-951 - Definitions

38-951.
Definitions
In this article,  unless the context otherwise requires:
1. " Board"  means the Arizona state retirement system board established by section 38-713 or the board of trustees established by section 38-848.
2. " Eligible group"  means any of the following:
(a) The Arizona state retirement system established by article 2 of this chapter.
(b) The elected officials' retirement plan established by article 3 of this chapter.
(c) The public safety personnel retirement system established by article 4 of this chapter.
(d) The corrections officer retirement plan established by article 6 of this chapter.
(e) An optional retirement program established pursuant to section 15-1451 or 15-1628.
3. " Employer"  means an agency or department of this state or an agency or department of a political subdivision of this state that has employees in an eligible group.
4. " Plan"  means a defined contribution plan authorized by this article.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-954 - Vesting

38-954.
Vesting
A. Employee contributions and earnings on employee contributions are immediately vested.
B. Employer matching contributions,  if any,  and the earnings on employer matching contributions are vested and the employee is entitled to receive employer matching contributions and earnings on those contributions as follows:
1. If the employee has less than one year of credited service in an eligible group,  zero per cent.
2. If the employee has at least one year but less than two years of credited service in an eligible group,  twenty per cent.
3. If the employee has at least two years but less than three years of credited service in an eligible group,  forty per cent.
4. If the employee has at least three years but less than four years of credited service in an eligible group,  sixty per cent.
5. If the employee has at least four years but less than five years of credited service in an eligible group,  eighty per cent.
6. If the employee has at least five years of credited service in an eligible group,  one hundred per cent.
C. All nonvested employer contributions and earnings on those contributions may be used to pay for the administrative costs of the plan.
2023 Arizona Revised Statutes › Title 38 - Public Officers and Employees › § 38-1001 - Definitions

38-1001.
Definitions
In this chapter,  unless the context otherwise requires:
1. " Council"  means the merit system council for law enforcement officers appointed under the provisions of this article.
2. " Department"  means the branch of government in which a law enforcement officer is employed.
3. " Department head"  means the officer charged with the duty of administering the branch of government having the jurisdiction over the law enforcement officer.
4. " Law enforcement officer"  means:
(a) A regularly appointed and paid deputy sheriff of a county.
(b) A regularly employed police officer in a city or town.