Ariz. Admin. Code § R2-8-115 - Return of Contributions Upon Termination of Membership by Separation from All ASRS Employment by Other Than Retirement or Death
A. The following
definitions apply to this Section unless otherwise specified:
3.
2.
"Employer Number" means a unique identifier the ASRS assigns to a member
employer.
4.
3. "Employer plan" means the types of eligible
retirement plans specified in A.R.S. §
38-770(D)(3)(c),
(d), (e), and (f).
6.
5. "On
File" means ASRS has received the information.
7.
6. "Process date" means
the calendar day the ASRS generates contribution withdrawal documents to be
sent to a member.
8.
7. "Warrant" means a voucher authorizing payment of
funds due to a member.
1. "DRO" means the same as
"domestic relations order" in A.R.S. §
38-773(H)(1).
2.
1. "Eligible retirement plan" means the same
as in A.R.S. §
38-770(D)(3).
B. A member who terminates from all ASRS
employment by other than retirement or death and desires a return of the
member's contributions, including amounts received for the purchase of service,
any employer contributions authorized under A.R.S. §
38-740,
and interest on the contributions, shall request from the ASRS, in writing or
verbally, the documents necessary to apply for the withdrawal of the member's
contributions.
C. Upon request to
withdraw by the member, the ASRS shall provide:
1. An Application for Withdrawal of
Contributions and Termination of Membership form to the member, and
2. An Ending Payroll Verification -
Withdrawal of Contribution and Termination of Membership form to the employer,
if ASRS has received contributions for the member within the six months
immediately preceding the date the member submitted the request to
ASRS.
D. The member
shall complete and return to the ASRS the Application for Withdrawal of
Contributions and Termination of Membership form that includes the following
information:
1. The member's full
name;
2. The member's Social
Security number or U.S. Tax Identification number;
3. The member's current mailing address, if
not On File with ASRS;
4. The
member's birth date, if not On File with ASRS;
5. Notarized signature of the member
certifying that the member:
a. Is no longer
employed by any Employer;
b. Is
neither under contract nor has any verbal or written agreement for future
employment with an Employer;
c. Is
not currently in a leave of absence status with an Employer;
d. Understands that each of the member's
former Employers will complete an ending payroll verification form if ASRS has
received contributions for the member within the six months immediately
preceding the date the member submitted the request to ASRS;
e. Understands that the member's most recent
Employer will complete an ending payroll verification form for the member if
the member has reached the member's required beginning date pursuant to A.R.S.
§
38-775;
f. Has read and understands the Special Tax
Notice Regarding Plan Payments the member received with the application and the
member elects to waive the member's 30-day waiting period to consider a roll
over or a cash distribution;
g.
Understands that the member is forfeiting all future retirement rights and
privileges of membership with ASRS;
h. Understands that LTD benefits will be
canceled if the member elects to withdraw contributions while receiving or
electing to receive long-term disability benefits;
i. Understands that if the member elects to
roll over all or any portion of the member's distribution to another employer
plan, it is the member's responsibility to verify that the receiving employer
plan will accept the rollover and, if applicable, agree to separately account
for the pre-tax and post-tax amounts rolled over and the related subsequent
earnings on the amounts;
j.
Understands that if the member elects to roll over all or any portion of the
member's distribution to an individual retirement account, it is the member's
responsibility to separately account for pre-tax and post-tax amounts;
and
k. Understands that if the
member elects a rollover to another employer plan or individual retirement
account, any portion of the distribution not designated for roll over will be
paid directly to the member and any taxable amounts will be subject to
applicable state and federal tax withholding;
l. Understands that the member is not
considered terminated and cannot withdraw the member's ASRS contribution if the
member was called to active military service and is not currently performing
services for an Employer;
m.
Understands that any person who knowingly makes any false statement with an
intent to defraud the ASRS is guilty of a Class 6 felony in accordance with
A.R.S. §
38-793.
6. Specify that:
a. The entire amount of the distribution be
paid directly to the member,
b. The
entire amount of the distribution be rolled over to an eligible retirement
plan, or
c. An identified amount of
the distribution be rolled over to an eligible retirement plan and the
remaining amount be paid directly to the member; and
7. If the member selects all or a portion of
the withdrawal be rolled over to an eligible retirement plan, specify;
a. The type of eligible retirement plan;
and
b. The name and mailing address
of the eligible retirement plan.
E. If ASRS has received contributions for the
member within six months immediately preceding the date the member submitted
the request to ASRS each Employer shall complete an Ending Payroll Verification
- Withdrawal of Contributions and Termination of Membership form electronically
that includes the following information:
1.
The member's full name;
2. The
member's Social Security number or U.S. Tax Identification number;
3. The member's termination date;
4. The member's final pay period ending
date;
5. The final amount of
contributions, including any adjustments or corrections, but not including any
long-term disability contributions;
6. The Employer's name and telephone
number;
7. The Employer
Number;
8. The name and title of
the authorized Employer representative;
9. Certification by the authorized Employer
representative that:
a. The member Terminated
Employment and is neither under contract nor bound by any verbal or written
agreement for employment with the Employer;
b. There is no agreement to re-employ the
member;
c. Any person who knowingly
makes any false statement or who falsifies any record of the retirement plan
with an intent to defraud the plan, is guilty of a Class 6 felony according to
A.R.S. §
38-793;
and
d. The authorized Employer
representative certifies that they are the Employer user named on the Ending
Payroll Verification - Withdrawal of Contributions and Termination of
Membership form and their title and contact information is current and
correct.
F.
If the member has attained a required beginning distribution date as of the
date the member submitted the request to ASRS, the most recent Employer shall
complete an Ending Payroll Verification - Withdrawal of Contributions and
Termination of Membership form electronically that includes the information
contained in subsection (E).
G. If
the member requests a return of contributions and a Warrant is distributed
during the fiscal year that the member began membership in the ASRS, no
interest is paid to the account of the member.
H. If the member requests a return of
contributions after the first fiscal year of membership, the ASRS shall credit
interest at the rate specified in Column 3 of the table in
R2-8-118(A)
to the account of the member as of June 30 of each year, on the basis of the
balance in the account of the member as of the previous June 30. The ASRS shall
credit interest for a partial fiscal year of membership in the ASRS on the
previous June 30 balance based on the number of days of membership up to and
including the day the ASRS issues the Warrant divided by the total number days
in the fiscal year. Contributions made after the previous June 30 are returned
without interest.
I. Upon
submitting to the ASRS the completed and accurate Application for Withdrawal of
Contributions and Termination of Membership form and, if applicable, after the
ASRS has received any Ending Payroll Verification - Withdrawal of Contributions
and Termination of Membership forms, a member is entitled to payment of the
amount due to the member as specified in subsection (G) or (H) unless ASRS has
received a DRO before the ASRS returns the contributions as specified by the
member.
J. A member may cancel an
Application for Withdrawal of Contributions and Termination of Membership form
at any time before the return of contributions is disbursed by submitting
written notice to ASRS to cancel the request.
K. If an Application for Withdrawal of
Contributions and Termination of Membership form is completed through the
member's secure ASRS account, the secure login and successful submission of the
knowledge based answers shall serve as the member's notarized signature
required under subsection (D)(5).
Notes
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