Section R2-8-516. Purchasing Service Credit by Indirect IRA Roll- over

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 an indirect IRA rollover if the rollover purchase is com- pleted within 60 days of the date of distribution of funds from the IRA account, as required by IRC § 408(d)(3)(A). The 60- day time limitation is exclusive of any other time limitations prescribed in this Article and the ASRS shall not extend the 60-day period.

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 described in R2-8-502(D)(2).

C.      Upon the receipt of the completed Service Purchase Payment Request form and upon the member’s request, the ASRS shall provide to the member an Indirect IRA Rollover Contribution form. The member shall complete the Indirect IRA Rollover Contribution form and ensure that the ASRS receives the form within 90 days after the issue date on the SP Invoice, along with:

1.        A copy of the distribution statement or check stub identi- fying it as an IRA distribution, showing the date of distri- bution and amount distributed; or

2.        The distribution check endorsed by the member made payable to the ASRS with documentation that it is an IRA distribution.

D.      The information requested on the Indirect IRA Rollover Con- tribution form includes:

1.        The member’s full name,

2.        The member’s Social Security number,

3.        The member’s mailing address,

4.        The member’s daytime telephone number,

5.        The member’s signature certifying that the member understands the statements on the form regarding the dis- tribution the member has received from the IRA and the requirements for an IRA rollover to the ASRS and agrees to the statements, and

6.        The date the member signs the form.

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

F.       After receiving notice from the ASRS that the rollover is an eligible rollover contribution, if the member has not sent pay- ment for the purchase of service credit, the member shall sub- mit payment for the service credit purchase. The member shall make payment by:

1.        The distribution check from the IRA made payable to the member and endorsed by the member to make it payable to the ASRS; or

2.        Direct payment by the member by check or money order to the ASRS, after the IRA distribution is deposited to the member’s account.

G.      Except as provided in subsection (H), unless the ASRS receives payment from the member 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.      The ASRS shall provide an extension of 60 days in which the check may be received by the ASRS under subsection (G) at the written 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 the member with 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 made payable to the ASRS for an amount that does not exceed the amount specified on the SP Invoice.

J.        If the payment exceeds the amount specified on the SP Invoice, the ASRS shall return the entire payment to the mem- ber.

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).