Section R2-8-501. Definitions

The following definitions apply to this Article unless otherwise specified:

1.        “Active duty” means full-time duty in a branch of the United States uniformed service, other than active reserve duty.

2.        “Active duty termination date” means the day a member:

a.         Separates from active military duty;

b.        Is released from active duty-related hospitalization or one year after initiation of active duty-related hos- pitalization, whichever date is earlier; or

c.         Dies as a result of active military duty.

3.        “Active reserve duty” means participating in required meetings and annual training in a Reserve or National Guard branch of the United States uniformed service.

4.        “Actuarial present value” means an amount in today’s dollars of a member’s future retirement benefit calculated using appropriate actuarial assumptions and the:

a.         Member’s current years of credited service to the nearest month;

b.        Member’s age to the nearest day;

c.         Amount of service credit the member wishes to pur- chase to the nearest month, except for the calcula- tion in R2-8-506(A)(2); and

d.        Member’s current annual compensation.

5.        “Authorized representative” means an individual who has been delegated the authority to act on behalf of a custo- dian, trustee, plan administrator, or, if applicable, a mem- ber.

6.        “Current years of credited service” means the amount of credited service a member has earned or purchased, and

the amount of service credit for which an Irrevocable Payroll Deduction Authorization is in effect for which the member has not yet completed payment, but does not include any current requests to purchase service credit for which the member has not yet paid.

7.        “Custodian” means a financial institution that holds financial assets for guaranteed safekeeping.

8.        “Direct rollover” means distribution of eligible funds made payable to the ASRS as a contribution for the bene- fit of an eligible member from a retirement plan listed in A.R.S. § 38-747(H)(2) or (H)(3).

9.        “Eligible funds” means payments listed in A.R.S. § 38- 747(H)(2) and (H)(3).

10.     “Eligible member” means an active member of the Plan or a Plan member who is receiving benefits under the Long Term Disability Program established by A.R.S. Title 38, Chapter 5, Article 2.1.

11.     “Forms of payment” means check, cashier’s check, money order, Irrevocable Payroll Deduction Authoriza- tion, direct rollover, indirect IRA rollover, indirect roll- over, trustee-to-trustee transfer, IRA rollover and termination pay distribution.

12.     “Forfeited service” means credited service for which the ASRS has returned retirement contributions to the mem- ber under A.R.S. § 38-740.

13.     “Immediate family member” means:

a.         A member’s spouse or life partner;

b.        A member’s natural, step, or adopted sibling;

c.         A member’s natural, step, or adopted child;

d.        A member’s natural, step, or adoptive parent; or

e.         An  individual   for  whom  the   member  has  legal guardianship.

14.     “Indirect IRA rollover” means funds already distributed to the eligible member from a retirement plan listed in

A.R.S. § 38-747(H)(3) that are then paid by the eligible member to the ASRS as a contribution for the benefit of the eligible member.

15.     “IRC” means the same as “Internal Revenue Code” in A.R.S. § 38-711(18).

16.     “Irrevocable Payroll Deduction Authorization ” means an irrevocable contract between an eligible member, an ASRS employer, and the ASRS that requires the ASRS employer to withhold payments from a member’s pay for a specified amount and for a specified number of pay- ments, as provided in A.R.S. § 38-747.

17.     “Life partner” means an individual who lives with a member as a spouse, but without being legally married.

18.     “Military Call-up” means a member is called to active duty in a branch of the United States uniformed services.

19.     “Military service” means active duty or active reserve duty with any branch of the United States uniformed ser- vices or the Commissioned Corps of the National Oce- anic and Atmospheric Administration.

20.     “Military service record” means a United States uni- formed services or National Oceanic and Atmospheric Administration document that provides the following information:

a.         The member’s full name;

b.        The member’s Social Security number;

c.         Type of discharge the member received; and

d.        Active duty dates, if applicable; or

e.         Active reserve duty dates, if applicable; and

f.         Point history for reserve duty dates, if applicable.

21.     “Other public service” means previous employment listed in A.R.S. § 38-743(A).

22.     “PDA pay-off letter” means written correspondence from the ASRS to a member that specifies the amount neces- sary to be paid by the member to complete an Irrevocable Payroll Deduction Authorization and receive the credited service specified in the Irrevocable Payroll Deduction Authorization.

23.     “Plan Administrator” means the person authorized to rep- resent a  specific eligible  plan as addressed in  IRC § 414(g).

24.     “Service credit” means forfeited service under A.R.S. § 38-742, leave of absence under A.R.S. § 38-744, military service and Military Call-up service under A.R.S. § 38- 745, and other public service under A.R.S. § 38-743 that an eligible member may purchase.

25.     “SP invoice” means a written correspondence from the ASRS informing an eligible member of the amount of money required to purchase a specified amount of service credit.

26.     “Termination pay distribution” means an ASRS employer’s payment to the ASRS of an eligible member’s termination pay to purchase service credit as specified in A.R.S. § 38-747(B)(2).

27.     “Three full calendar months” means the first day of the first full month through the last day of the third consecu- tive full month.

28.     “Transfer employment” means to terminate employment with one ASRS employer with which a member has an Irrevocable Payroll Deduction Authorization:

a.         After accepting an offer to work for a new ASRS employer, or

b.        While working as an active member for a different ASRS employer.

29.     “Trustee-to-trustee transfer” means a transfer of assets to the ASRS as authorized in A.R.S. § 38-747(I), from a retirement program listed in R2-8-515(A) from which, at the time of the transfer, a member is not eligible to receive a distribution.

30.     “Uniformed services” means the United States Army, Army Reserve, Army National Guard, Navy, Navy Reserve, Air Force, Air Force Reserve, Air Force National Guard, Marine Corps, Marine Corps Reserve, Coast Guard, Coast Guard Reserves, and the Commis- sioned Corps of the Public Health Service.

31.     “Window credit” means overpayments made on previ- ously purchased service credit by eligible members of the ASRS as provided by Laws 1997, Ch. 280, § 21, and Laws 2003, Ch. 164, § 3.

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2640, effective June 30, 2005 (Supp. 05-2). Amended by final rulemaking at 12 A.A.R. 4667, effective December 5, 2006 (Supp. 06-4). Amended by final rulemaking at 18

A.A.R. 3130, effective January 6, 2013 (Supp. 12-4). Amended by final rulemaking at 19 A.A.R. 764, effective June 1, 2013 (Supp. 13-2). Amended by final rulemaking

at 21 A.A.R. 2515, effective December 5, 2015 (Supp.

15-4).