Section R2-8-515. Purchasing Service Credit by Trustee-to-Trustee Transfer

A.      An eligible member may purchase service credit or pay off an Irrevocable Payroll Deduction Authorization at retirement or termination of employment without transferring employment by a trustee-to-trustee transfer if the member participates in:

1.        A deferred compensation plan described in IRC § 457 that is maintained by:

a.         The state of Arizona;

b.        A political subdivision, agency, or instrumentality of the state of Arizona; or

c.         A political subdivision entity of the state of Arizona;

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

3.        A retirement program qualified under IRC § 401(a) or 403(a).

B.       By the due date specified on the SP invoice, the ASRS shall receive from the member the completed Service Purchase Pay- ment Request form described 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 member and the plan admin- istrator complete the Direct Rollover/Transfer Certification to Purchase Service Credit form, containing all of the applicable information identified in R2-8-514(E), and ensure that the ASRS receives the form within 90 days after the issue date on the SP Invoice.

E.       The ASRS shall provide the member with written notification regarding the eligibility of the transfer.

F.       The member shall contact the plan administrator to have the funds transferred to the ASRS. Except as provided in subsec- tion (G), unless the ASRS receives the 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 ser- vice credit as specified in R2-8-502(C).

G.      The ASRS shall provide an extension of 60 days in which the check may be received by the ASRS from the plan at the writ- ten request of the member, if:

1.        The member has followed the procedure under this Arti- cle 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.

H.      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.

I.        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 and notify the member of the correct amount due.

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).