LegalFix
Sign In

§ 38-862 Discount rate; service purchase; transfer of service credits

AZ Rev Stat § 38-862 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

38-862. Discount rate; service purchase; transfer of service credits

A. Beginning July 1, 2017, the discount rate specified in subsection B of this section applies to service purchases or transfers of service credits to the system pursuant to the following sections:

1. Section 38-849, subsection D.

2. Section 38-853.01, subsection C.

3. Section 38-858, subsection A or B.

4. Sections 38-921, 38-922, 38-923 and 38-924.

B. For members enrolled in the system:

1. Before July 1, 2017, the discount rate is the assumed rate of return that is prescribed by the board.

2. On or after July 1, 2017, the discount rate is an amount equal to the lesser of the assumed rate of return that is prescribed by the board or an amount equal to the yield on a ten-year treasury note as of March 1 that is published by the federal reserve board plus two percent. The discount rate is effective beginning in the next fiscal year, and the board shall recalculate the rate each year.

Previous Section
§ 38-861 Future benefit increases; payment; cost calculation; definition
Next Section
§ 38-863 Employer disclosure; funding ratio