Ariz. Admin. Code § 2-8-116

Current through Register Vol. 30, No. 45, November 8, 2024

Section R2-8-116 - Alternate Contribution Rate

A. For purposes of this section, the following definitions apply:

1. "ACR" means an alternate contribution rate pursuant to A.R.S. § 38-766.02, the resulting amount of which is not deducted from the employee's compensation.

2. "Class of positions" means all employment positions of the employer that perform the same, or substantially similar, function or duties, for the employer as determined by the ASRS in subsection (B).

3. "Compensation" has the same meaning as A.R.S. § 38-711(7) and does not include ACR amounts.

4. "Leased from a third party" means:

a. The employee is not employed by an employer; and

b. A co-employment relationship, as defined in A.R.S. § 23-561(4), does not exist.

B. An employer that employs a retired member shall pay an ACR to the ASRS, unless the employer provides proof that:

1. The retired member is leased from a third party; and

2. All employees in the entire class of positions, to which the retired member's position belongs, have been leased from a third party; and

3. No employee who has not been leased is performing the same, or substantially similar, function or duties, as the retired member.

C. In order to determine whether an employer satisfies the criteria in subsection (B), the employer shall submit information and documentation, pursuant to A.R.S. § 38-766.02(E), within 14 days of written request by the ASRS.

D. The employer shall directly remit payment of an ACR to the ASRS from the employer's funds, through the employer's secure ASRS account within 14 days of the first pay period end date after the hire of the retired member.

E. If the employer does not remit the ACR by the date it is due pursuant to subsection (D), the ASRS shall charge interest on the ACR amount from the date it was due to the date the ACR payment is remitted to the ASRS at the assumed actuarial investment earnings rate listed in R2-8-118(A).

F. A payment of an ACR on behalf of a retired member pursuant to A.R.S. § 38-766.02, shall not entitle a retired member to a refund of an ACR payment or any additional ASRS benefit as described in A.R.S. § 38-766.01(E).

Ariz. Admin. Code § R2-8-116

Former Rule, Retirement System Regulation 2; Former Section R2-8-16 renumbered as Section R2-8-116 without change effective May 21, 1982 (Supp. 82-3). Section expired under A.R.S. § 41-1056(E) at 16 A.A.R. 1765, effective July 14, 2010 (Supp. 10-3). New section made by final rulemaking at 22 A.A.R. 1341, effective 7/4/2016. Amended by final rulemaking at 24 A.A.R. 1861, effective 6/11/2018.