Section R2-8-514. Purchasing Service Credit by Direct Rollover

A.      An eligible member may purchase service credit or pay off an Irrevocable Payroll Deduction Authorization by direct rollover at retirement or termination of employment without transfer- ring employment.

B.       By the due date specified on the SP invoice, the member shall ensure that the ASRS receives the completed Service Purchase Payment Request form with the information specified in R2-8- 502(D)(2).

C.      Upon receipt of the completed Service Purchase Payment Request form, the ASRS shall provide a Direct Rollover/ Transfer Certification to Purchase Service Credit form, if the ASRS has not already provided the member with the form.

D.      The member shall ensure that the ASRS receives the Direct Rollover/Transfer Certification to Purchase Service Credit form completed by the member and the plan making the distri- bution within 90 days after the issue date of the SP Invoice.

E.       The information requested on the Direct Rollover/Transfer Certification to Purchase Service Credit form includes:

1.        Member’s full name;

2.        Member’s Social Security number;

3.        Member’s mailing address;

4.        Member’s daytime telephone number;

5.        The amount of each rollover or transfer, if applicable;

6.        The account number of each plan, if applicable;

7.        The member’s signature certifying that the member understands the requirements, limitations, and entitle- ments for the rollover/transfer that is being used to pur- chase service credit, and has read and understands the Direct Rollover/Transfer Certification to Purchase Ser- vice Credit form and any accompanying instructions and information sheets;

8.        The date the member signs the form;

9.        The authorized representative’s name and title;

10.     The authorized representative’s address;

11.     The authorized representative’s telephone number;

12.     Certification by the authorized representative that:

a.         The plan is either:

i.         A qualified pension, profit sharing, or 401(k) plan described in IRC § 401(a), or a qualified annuity plan described in IRC § 403(a);

ii.       A deferred compensation plan described in IRC

§ 457(b) maintained by a state of the United States, a political subdivision of a state of the United States, or an agency or instrumentality of a state of the United States;

iii.      An annuity contract described in IRC § 403(b); or

iv.       An IRA described in A.R.S. § 38-747(H)(3);

b.        The rollover/transfer specified on the form from which the pre-tax funds are being rolled over or transferred is intended to satisfy the requirements of the applicable section of the Internal Revenue Code;

c.         The authorized representative is not aware of any plan provision or any other reason that would cause the plan/IRA not to satisfy the applicable section of the Code; and

d.        The funds will be sent to the ASRS as a direct plan rollover, IRA rollover, or a trustee-to-trustee trans- fer; and

13.     The date and signature of the authorized representative.

F.       The ASRS shall provide the member with written notification regarding the eligibility of the rollover.

G.      The member shall contact the plan administrator to have the funds distributed and transferred to the ASRS. Except as pro- vided in subsection (H), unless the ASRS receives a check for the correct amount from the plan within 90 days of the issue date on the SP invoice, the ASRS shall cancel the request to purchase service credit as specified in R2-8-502(C).

H.      At the written request of the member, the ASRS shall provide an extension of 60 days in which the check may be received by the ASRS from the plan at the written request of the member, if:

1.        The member has followed the procedure in this Article for requesting to purchase service credit,

2.        The member has responded to the ASRS correspondence within the time-frame set forth in this Article,

3.        The eligible plan has not provided to the ASRS the check to pay for the requested service credit purchase within 90 days of the date of the SP invoice, and

4.        The member makes the written request for extension before expiration of the 90 days.

I.        The member shall ensure that the ASRS receives a check from the plan, made payable to the ASRS, for an amount that does not exceed the amount specified on the SP Invoice.

J.        If the payment from the eligible plan exceeds the amount spec- ified on the SP Invoice, the ASRS shall return the entire pay- ment to the member.

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).