Section R2-8-115. Return of Contributions Upon Termination of Membership by Separation from All ASRS Employment by Other Than Retirement or Death; Payment of Member’s Bene- fits Upon the Death of a Member

A.      The following definitions apply to this Section unless other- wise specified:

1.        “Acceptable documentation” means any ASRS form request containing all the accurate, required information, dates, and signatures necessary to process the form request.

2.        “Eligible retirement plan” means the same as in A.R.S. § 38-770(D)(3).

3.        “Employer number” means a unique identifier the ASRS assigns to a member employer.

4.        “Employer plan” means the types of eligible retirement plans specified in A.R.S. § 38-770(D)(3)(c), (d), (e), and (f).

5.        “Process date” means the calendar day the ASRS gener- ates contribution withdrawal documents to be sent to a member.

6.        “Warrant” means a voucher authorizing payment of funds due to a member.

B.       A member who terminates from all ASRS employment by other than retirement or death and desires a return of the mem- ber’s contributions, including amounts received for the pur- chase of service, any employer contributions authorized under

A.R.S.  §  38-740,  and  interest   on  the  contributions,  shall request from the ASRS, in writing or verbally, the documents

necessary to apply for the withdrawal of the member’s contri- butions.

C.      Upon receipt of the request, the ASRS shall provide the mem- ber with:

1.        An Application for Withdrawal of Contributions and Ter- mination of Membership form,

2.        An Ending Payroll Verification – Withdrawal of Contri- bution and Termination of Membership form, and

3.        The process date.

D.      The member shall complete and return to the ASRS the Appli- cation for Withdrawal of Contributions and Termination of Membership form that includes the following information:

1.        The member’s full name;

2.        The member’s Social Security number;

3.        The member’s current mailing address;

4.        The member’s daytime telephone number, if applicable;

5.        The member’s birth date;

6.        The date of termination;

7.        Dated signature of the member certifying that the mem- ber:

a.         Is no longer employed by any ASRS employer;

b.        Is neither under contract nor has any verbal or writ- ten agreement for future employment with an ASRS employer;

c.         Is not currently in a leave of absence status with an ASRS employer;

d.        Understands that each of the member’s former ASRS employers’ payroll departments will com- plete a payroll verification form if payroll transac- tions occurred with the ASRS employer within the six months before the process date;

e.         Has read and understands the Special Tax Notice Regarding Plan Payments the member received with the application;

f.         Understands that the member is forfeiting all future retirement rights and privileges of membership with the ASRS;

g.        Understands that long-term disability benefits will be canceled if the member elects to withdraw contri- butions while receiving or electing to receive long- term disability benefits;

h.        Understands that if the member elects to roll over all or any portion of the member’s distribution to another employer plan, it is the member’s responsi- bility to verify that the receiving employer plan will accept the rollover and, if applicable, agree to sepa- rately account for the pre-tax and post-tax amounts rolled over and the related subsequent earnings on the amounts;

i.         Understands that if the member elects to roll over all or any portion of the member’s distribution to an individual retirement account, it is the member’s responsibility to separately account for pre-tax and post-tax amounts; and

j.         Understands that if the member elects a rollover to another employer plan or individual retirement account, any portion of the distribution not desig- nated for rollover will be paid directly to the mem- ber and any taxable amounts will be subject to 20% federal income tax withholding and 5% state tax withholding;

8.        Specify that:

a.         The entire amount of the distribution be paid directly to the member,

b.        The entire amount of the distribution be transferred to an eligible retirement plan, or

c.         An identified amount of the distribution be trans- ferred to an eligible retirement plan and the remain- ing amount be paid directly to the member; and

9.        If the member selects all or a portion of the withdrawal be paid to an eligible retirement plan, specify;

a.         The type of eligible retirement plan;

b.        The  eligible  retirement  plan  account  number,  if applicable; and

c.         The name and mailing address of the eligible retire- ment plan.

E.       If a payroll transaction for the member occurred with any ASRS employer within six months before the process date the member shall complete and return to the ASRS an Ending Payroll Verification – Withdrawal of Contributions and Termi- nation of Membership form for each ASRS employer that includes the following information:

1.        Filled out by the member:

a.         The member’s full name, and

b.        The member’s Social Security number; and

2.        Filled out by each ASRS employer:

a.         The member’s termination date,

b.        The member’s final pay period ending date;

c.         The final amount of contributions, including any adjustments or corrections, but not including any long-term disability contributions,

d.        The ASRS employer’s name and telephone number;

e.         The employer number;

f.         The name and title of the authorized employer repre- sentative;

g.        Certification by the authorized employer representa- tive that:

i.         The member terminated employment and is neither under contract nor bound by any verbal or written agreement for employment with the employer;

ii.        There is no agreement to re-employ the mem- ber; and

iii.      The authorized employer representative has the legal power to bind the employer in transac- tions with the ASRS; and

h.        The signature of the authorized employer represen- tative and date of signature.

F.       If the member requests a return of contributions and a warrant is distributed during the fiscal year that the member began membership in the ASRS, no interest is paid to the account of the member.

G.      If the member requests a return of contributions after the first fiscal year of membership, the ASRS shall credit interest at the rate specified in Column 3 of the table in R2-8-118(A) to the account of the member as of June 30 of each year, on the basis of the balance in the account of the member as of the previous June 30. The ASRS shall credit interest for a partial fiscal year of membership in the ASRS on the previous June 30 balance based on the number of days of membership up to and includ- ing the day the ASRS issues the warrant divided by the total number days in the fiscal year. Contributions made after the previous June 30 are returned without interest.

H.      Upon submitting to the ASRS the completed and accurate Application for Withdrawal of Contributions and Termination of Membership form and, if applicable, any Ending Payroll Verification – Withdrawal of Contributions and Termination of Membership forms, a member is entitled to payment of the amount due to the member as specified in subsection (F) or

(G) unless a present or former spouse submits to the ASRS a domestic relations order that specifies entitlement to all or part

of the return of contributions under A.R.S. § 38-773 before the ASRS returns the contributions as specified by the member.

I.        Upon the death of a member, the ASRS shall distribute the sur- vivor benefits according to the most recent, acceptable docu- mentation that is on file with the ASRS that was received prior to the date of the member’s death, unless otherwise provided by law.

J.        If there is no designation of beneficiary or if the designated beneficiary predeceases the member, the survivor benefit is paid as specified in A.R.S. § 38-762(E). The designated bene- ficiary or other person specified in A.R.S. § 38-762(E) shall:

1.        Provide a certified copy of a death certificate or a certi- fied copy of a court order that establishes the member’s death;

2.        Provide a certified copy of the court order of appointment as administrator, if applicable; and

3.        Except if the deceased member was retired and elected the joint and survivor option, complete and have nota- rized an application for survivor benefits, provided by the ASRS, that includes:

a.         The deceased member’s full name,

b.        The deceased member’s Social Security number,

c.         The following, as it pertains to the designated bene- ficiary or other person specified in A.R.S. § 38- 762(E):

i.         Full name;

ii.       Mailing address;

iii.      Contact telephone number;

iv.       Date of birth, if applicable; and