Ariz. Admin. Code § R2-8-1003 - Charter School Employer Membership

A. Pursuant to A.R.S. § 15-187(C), a charter school in Arizona is considered a political subdivision that is eligible to participate in the ASRS if the charter school is sponsored by:

1. A state university;

2. A community college district;

3. A group of community college districts;

4. The state board of education; or

5. The state board for charter schools.

B. In order to participate as an Employer in the ASRS, a charter school shall notify the ASRS in writing of the charter school's intent to join the ASRS and provide:

1. A copy of the current and active Charter Contract, including any amendments, which is approved by the entity sponsoring the charter school pursuant to subsection (A);

2. Documentation showing the name and location of all schools authorized by the Charter Contract identified in subsection (B)(1); and

3. Documentation showing the charter school board's approval to pursue ASRS membership and complete ASRS requirements for membership.

C. Upon receipt of the information contained in subsection (B), the ASRS shall determine if the charter school is eligible to participate in the ASRS. If the charter school is not eligible to participate in the ASRS, the ASRS shall send the charter school a notice of ineligibility. If the charter school is eligible to participate, the ASRS shall provide the charter school a Potential New Employer Letter.

D. In order to participate as an Employer in the ASRS, an eligible charter school shall submit to the ASRS by the due date listed on the Potential New Employer Letter:

1. The following original documents:

1.a. The current retirement plan or a statement signed by the designated authorized agent for the charter school acknowledging there is no current retirement plan.

2.b. Two ASRS Agreements showing:

a.i. The legal name and current mailing address of the charter school as sponsored pursuant to subsection (A);

b.ii. What amount of prior service the charter school shall purchase for employees pursuant to R2-8-1006;

c.iii. The approximate number of employees that will become members upon the effective date of the ASRS Agreement;

d.iv. The name, title, email address, and telephone number of the designated authorized agent for the charter school;

e.v. The designated authorized agent is authorized and directed to conduct all negotiations, conclude all arrangements, and sign all documents necessary to administer the supplemental ASRS retirement plan pursuant to A.R.S. Title 38, Chapter 5, Articles 2 and 2.1; and

f.vi. The ASRS Agreement is binding and irrevocable;

g.vii. The effective date of the ASRS Agreement;

h.viii. The charter school agrees to be bound by the provisions of A.R.S. Title 38, Chapter 5, Article 2 and Article 2.1 unless otherwise indicated by law; and

i.ix. The dated signature of the designated authorized agent for the charter school.

3.c. Two ASRS Resolutions showing:

a.i. The legal name of the charter school as sponsored pursuant to subsection (A);

b.ii. The charter school is adopting a supplemental ASRS retirement plan pursuant to A.R.S. § 38-729;

c.iii. The charter school agrees to be bound by the provisions of A.R.S. Title 38, Chapter 5, Article 2 and Article 2.1 unless otherwise indicated by law;

d.iv. The designated authorized agent for the charter school;

e.v. The designated authorized agent is authorized and directed to conduct all negotiations, conclude all arrangements, and sign all documents necessary to administer the supplemental ASRS retirement plan pursuant to A.R.S. Title 38, Chapter 5, Articles 2 and 2.1; and

f.vi. The dated and notarized signature of the designated authorized agent.

2. The following copies if the eligible charter school has elected coverage pursuant to a 218 Agreement:

4.a. A 218 Agreement. If the charter school is electing coverage pursuant to a 218 Agreement, the 218 Agreement must be completed and approved by the Social Security Administration prior to joining the ASRS.

5.b. A 218 Resolution. The 218 Resolutions must be completed and approved by the Social Security Administration prior to joining the ASRS.

E. Upon receipt of Acceptable Documentation identified in subsection (D), the ASRS may approve the charter school's request for membership pursuant to A.R.S. § 38-729. If the request to join the ASRS is approved, the ASRS Director shall sign the ASRS Agreements before the ASRS shall send one of each of the original documents identified in subsection (D) to the charter school.

F. Any charter school that is established under the charter contract of a participating charter school shall participate in the ASRS.

G. Upon joining the ASRS, a charter school has a one-time opportunity to identify and exclude current employees from ASRS membership based on a classification of those employees that is established by the charter school consistent with federal law and that is not designed to, and does not result in, the cost of providing the benefits to the charter school's employees being greater than the cost of providing benefits to the employees of Employers as determined by the ASRS.

H. A charter school that elects to identify and exclude a classification of employees according to subsection (G) shall provide the ASRS with all information the ASRS requests in order for the ASRS to determine the cost of providing the benefits to the charter school's employees is not greater than the cost of providing benefits to the employees of Employers as determined by the ASRS.

I. Notwithstanding subsection (G), all other current and future employees of the charter school who meet membership eligibility requirements are required to participate in the ASRS as of the effective date of the charter school joining the ASRS according to A.R.S. §§ 38-711 et seq.

Notes

Ariz. Admin. Code § R2-8-1003

Adopted by final rulemaking at 24 A.A.R. 3407, effective 2/4/2019. Amended by final rulemaking at 30 A.A.R. 742, effective 5/17/2024.