R2-8-118. Application of Interest Rates

A. Application of interest from inception of the ASRS Plan through the present is as follows: Interest Rate Used to Determine Return of Contributions Upon Termination of Membership by Separation from Service by Other Than Retirement or Death 7-1-1953 2.50% 2.50% 7-1-1959 3.00% 3.00% 7-1-1966 3.75% 3.75% 7-1-1969 4.25% 4.25% 7-1-1971 4.75% 4.75% 7-1-1975 5.50% 5.50% Effective Date of Interest Rate Change Assumed Actuarial Investment Earnings Rate 7-1-1976 6.00% 5.50% 7-1-1981 7.00% 5.50% 7-1-1982 7.00% 7.00% 7-1-1984 8.00% 8.00% 7-1-2005 8.00% 4.00% 7-1-2013 8.00% 2.00% 7-1-2018 7.50% 2.00% 7-1-2022 7.00% 2.00% B. At the beginning of each fiscal year, interest is credited to the retirement account of each member on the June 30 that marks the end of the fiscal year based on the balance in the member’s account as of the previous June 30. The balance on which interest is credited includes: 1. Employer and employee contributions; 2. Voluntary additional contributions made by members pursuant to A.R.S. §§ 38-742, 38-743, 38-744, and 38- 745, if applicable; 3. Amounts credited by transfer under 2 A.A.C. 8, Article 11; and 4. Interest credited in previous years. C. Notwithstanding subsection (B), the retirement account of each member stops accruing interest the last full month prior to the member’s retirement date. D. A member’s retirement account that the ASRS deems abandoned according to A.R.S. § 38-722 shall receive interest at the applicable interest rates according to subsection (A) upon reinstatement of the retirement account. E. For a member whose address and birthdate are on file with the ASRS, the ASRS shall deem a retirement account of a member who is not retired or deceased as abandoned if: 1. The ASRS has not received any contributions for at least 180 days; 2. The member has reached the required minimum distribution age according to A.R.S. § 38-775; and 3. The ASRS has sent the member at least three annual notices of the member’s responsibility to submit an application for disbursement of benefits according to A.R.S. § 38-775 and the member has not responded to those notices. F. For a member whose address and birthdate are not on file with the ASRS, the ASRS shall deem a retirement account of a member who is not retired or deceased as abandoned if: 1. The ASRS has not received any contributions for at least 180 days; and 2. The ASRS has posted the member’s full name to the abandoned monies section of the ASRS website for at least three consecutive years. G. The ASRS shall deem a retirement account of a deceased member as abandoned if: 1. The ASRS has sent the designated beneficiary at least three annual notices of the beneficiary’s responsibility to begin receiving benefits according to A.R.S. § 38-775; and 2. The designated beneficiary has not responded to those notices. H. The ASRS shall reinstate an abandoned retirement account if the apparent owner notifies the ASRS that the member would like the retirement account reinstated.