Ariz. Admin. Code § R2-8-207 - Optional Premium Benefit

A. A member who retires on or after January 1, 2004, is eligible to elect the Optional Premium Benefit to be effective on the date of the retired member's retirement and may designate a Contingent Annuitant to receive the Optional Premium Benefit upon the death of the retired member if:

1. The retired member elects a retirement option under A.R.S. § 38-760; and

2. The retired member elects to maintain Coverage.

B. A retired member who returns to active membership for 60 consecutive months or more before retiring again, may elect or re-elect the Optional Premium Benefit pursuant to subsection (A).

C. A retired member who does not return to active membership for 60 consecutive months or more before retiring again is not eligible to elect the Optional Premium Benefit pursuant to subsection (A) unless the retired member elected the Optional Premium Benefit to be effective on the date of the retired member's Original Retirement Date.

D. In order to elect, re-elect, or terminate the Optional Premium Benefit pursuant to subsection (A), the retired member shall submit to the ASRS the Optional Premium Benefit Program Election or Termination form containing the following information:

1. The retired member's Social Security number or U.S. Tax Identification number;

2. Whether the retired member is electing, declining, or terminating the Optional Premium Benefit;

3. The following information for the Contingent Annuitant if the retired member is electing or re-electing the Optional Premium Benefit:

a. The Social Security number or U.S. Tax Identification number;

b. The full name; and

c. The date of birth, if not On File; and

4. Certification of understanding by the retired member's dated signature of the following statements:

a. I have a one-time election at the time of retirement for this benefit, and have a retirement date on or after January 1, 2004;

b. I must elect a Joint & Survivor or Period-Certain annuity option;

c. If I elect to participate, my Contingent Annuitant must be either participating or eligible to participate in my retiree health care plan at the time of my death;

d. I must provide proof of birth date for my Contingent Annuitant;

e. The Premium Benefit will be actuarially reduced for the remainder of my benefit and my Contingent Annuitant's benefit as long as the Optional Premium Benefit is elected; and

f. I may rescind the election at any time and be eligible for the unreduced Premium Benefit payable as provided by law.

E. In order to elect or re-elect the Optional Premium Benefit, a member shall submit the Optional Premium Benefit Program Election or Termination form to the ASRS prior to the member's Original Retirement Date.

F. A Contingent Annuitant the retired member designates to receive the Optional Premium Benefit upon the retired member's death is eligible to receive a Premium Benefit if:

1. The retired member designates the Contingent Annuitant as the primary beneficiary on the member's retirement account;

2. The Contingent Annuitant is enrolled in a Coverage plan at the time of the member's death or the Contingent Annuitant enrolls in a Coverage plan within six months of the retired member's death pursuant to A.R.S. § 38-782(A); and

3. The Contingent Annuitant is eligible to receive at least one monthly payment.

G. Upon the death of a retired member who elected the Optional Premium Benefit pursuant to subsection (A), the ASRS shall provide the Optional Premium Benefit on behalf of the retired member's Contingent Annuitant who is eligible to receive the Optional Premium Benefit pursuant to subsection (F).

H. Notwithstanding subsection (G), the amount of the Optional Premium Benefit the ASRS provides on behalf of a Contingent Annuitant shall not exceed the actual amount of the Coverage premium.

I. Unless otherwise indicated by law, the Optional Premium Benefit shall not terminate upon the death of the retired member if a Contingent Annuitant is eligible for the Optional Premium Benefit pursuant to subsection (F).

J. The Optional Premium Benefit shall terminate if the member is no longer receiving a Joint & Survivor or Period-Certain annuity.

Notes

Ariz. Admin. Code § R2-8-207

New Section made by final rulemaking at 10 A.A.R. 1962, effective May 4, 2004 (Supp. 04-2). Adopted by final rulemaking at 23 A.A.R. 1414, effective 7/3/2017. Amended by final expedited rulemaking at 27 A.A.R. 479, effective 3/5/2021. Amended by final rulemaking at 30 A.A.R. 739, effective 5/17/2024.