38-745

38-745. Credit for military service

A. An active member of ASRS or a member who is receiving benefits pursuant to
section 38-797.07 may purchase credited service in ASRS for active military service if
all of the following apply:

1. The member was honorably separated from the military service.

2. The member submits a copy of the member's military service record (DD-214) or
its equivalent with the member's application for military service credit.

3. Beginning July 1, 2010, a member has at least five years of credited service in
ASRS.

B. The cost to purchase military service credit is an amount equal to the present
value of the additional benefit that is derived from the purchased credited service using
the actuarial assumptions that are approved by the board.

C. An active member of ASRS who is called to active military service may receive
credited service for not more than sixty months of active military service, except as
provided by the uniformed services employment and reemployment rights act (38 United
States Code section 4312(c)). The member's employer shall make employer contributions and
member contributions for the member if the member meets the following requirements:

1. Was an active member of ASRS on the day before the member began active military
service.

2. Is a member of the Arizona national guard or is a member of the reserves of any
military establishment of the United States.

3. Volunteers or is ordered into active military service of the United States as
part of a military call-up.

4. One of the following occurs:

(a) Is honorably separated from active military service and returns to employment
for the same employer from which the member left for active military service within
ninety days after the date active military service is terminated.

(b) Is hospitalized as a result of military service and returns to employment for
the same employer from which the member left for active military service within ninety
days after release from service related hospitalization.

(d) Dies as a result of or during the military service.

D. Contributions made pursuant to subsection C of this section shall be for the
period of time beginning on the date the member began active military service and ending
on the later of one of the following dates:

1. The date the member is separated from active military service.

2. The date the member is released from service related hospitalization or one year
after initiation of service related hospitalization, whichever date is earlier.

3. One year after the date of disability.

4. The date the member dies as a result of or during active military service.

E. Notwithstanding any other law, on payment of the contributions made pursuant to
subsection C of this section, the member shall be credited with service for retirement
purposes for the period of time of active military service of not more than sixty months.

F. The employer shall make contributions pursuant to subsection C of this section
as follows:

1. Contributions shall be based on the compensation that a member would have
received but for the period that the member was ordered into active military service.

2. If the employer cannot reasonably determine a member's rate of compensation for
the period that the member was ordered into active military service, the employer shall
make contributions based on the member's average rate of compensation during the
twelve-month period immediately preceding the period of active military service.

3. If a member has been employed less than twelve months before being ordered into
active military service, the employer shall make contributions based on the employment
period immediately preceding the period of active military service.

4. Employer contributions shall be made in a lump sum and without penalty when the
member returns to employment, when it is determined that the member is unable to return
to employment because of a disability as a result of or that occurred during military
service or on receipt of the member's death certificate. If a member suffers a service
related death, the employer shall make the employer and member contributions up to and
including the date of the member's death. Death benefits shall be calculated as
prescribed by law.

G. In computing the length of total credited service of a member for the purpose of
determining retirement benefits or eligibility, the period of military service, as
prescribed by this section, shall be included.

H. Notwithstanding any other law, the member is not required to reimburse the
member's employer or ASRS for any contribution made pursuant to subsection C of this
section.

I. In addition to, but not in duplication of, the provisions of subsection C of
this section, contributions, benefits and credited service provided pursuant to this
section shall be provided in accordance with section 414(u) of the internal revenue code.