Section R2-8-201. Definitions

The following definitions apply to this Article unless otherwise specified:

1.        “13th check” means the aggregated amount of the annual annuities awarded to a retired System member as the member’s pro rata share of the excess surplus allocated by the Board for an increase in retirement benefits and distributed once a year to a retired System member or, upon election by the retired System member, to the retired System member’s surviving beneficiary.

2.        “14th check” means the aggregated amount of the annual annuities awarded to a retired System member as the retired System member’s pro rata share of the excess sur- plus due to changes in the interest rate assumption and life expectancy table assumption, allocated by the Board for an increase in retirement benefits distributed once a year to the retired System member or, upon election by the retired System member, to the retired System mem- ber’s beneficiary.

3.        “Actuary” means an individual who is a Fellow of the Society of Actuaries, and is hired and directed by the Board to make actuarial calculations, determinations, val- uations, experience studies, recommendations, and other actions directed by the Board.

4.        “ASRS” means the same as in A.R.S. § 38-711.

5.        “Beneficiary longevity reserve account”  means  the account established under Laws of 1953 and continued in Section 24 (B) of the Implementing Statute that is used to maintain benefits payable to retired System members and System members’ beneficiaries.

6.        “Board” means the same as in A.R.S. § 38-711.

7.        “Employer” means the same as in A.R.S. § 38-711.

8.        “Employer account” means that portion of a non-retired member’s System retirement account that contains employer contributions, supplemental credits, and accu- mulated interest on employer contributions and supple- mental credits.

9.        “Employer contributions” means the same as in A.R.S. § 38-711.

10.     “Excess surplus” means the funds in the beneficiary lon- gevity reserve account that exceed the funded status range and that are subject to allocation by the Board as provided in R2-8-203(A)(3).

11.     “Fiscal year” means the same as in A.R.S. § 38-711.

12.     “Funded status” means the ratio, expressed as a percent- age, of the actuarial value of assets for System members to the total liabilities of the System for future benefits.

13.     “Guaranteed account balance” means all System member and employer contributions in a System member’s retire- ment account, not including supplemental adjustments, plus the interest credited annually on those contributions.

14.     “Guaranteed benefit” means the portion of a retired sys- tem member’s or the retired System member’s benefi- ciary’s monthly benefit derived from the guaranteed account balance and calculated at the time of retirement.

15.     “Implementing Statute” means Arizona Session Laws 1995, Chapter 32, Section 24, as amended by Arizona Session Laws 1999, Chapter 66, Section 1.

16.     “Interest” means the assumed actuarial investment earn- ings rate approved by the Board.

17.     “Market value” means an estimated monetary worth of an asset, based on the current demand for the asset and the amount of that type of asset that is available for sale.

18.     “Member” means the same as in A.R.S. § 38-711.

19.     “Member contributions” means the same as in A.R.S. § 38-711.

20.     “Monthly benefit” means the annuitized payment of a retired System member’s guaranteed and non-guaranteed account balances.

21.     “Non-guaranteed account balance” means the sum of all supplemental adjustments and interest credited on those adjustments.

22.     “Non-guaranteed benefit” means:

a.         The portion of the monthly benefit derived from all supplemental adjustments and interest credited on those adjustments,

b.        The 13th check, and

c.         The 14th check

23.     “Plan”  means  the   same  as  “defined  benefit  plan”  in

A.R.S. § 38-769, and administered by the ASRS.

24.     “Retirement account” means the same as in A.R.S. § 38- 771.

25.     “Supplemental adjustment” means the amount credited or debited to a non-retired system member’s employer account or to a retired System member’s non-guaranteed benefit as determined by Section 24 (B) of the Imple- menting Statute.

26.     “System” means the same as “defined contribution plan” as defined in A.R.S. § 38-769, and which is administered by the ASRS.

27.     “Total liabilities” means the amount needed to pay all System benefits.

Historical Note

New Section made by final rulemaking at 10 A.A.R.

1962, effective May 4, 2004 (Supp. 04-2).