2005 Arizona Revised Statutes - Revised Statutes §38-858  Credit for military service; national guard or reserve members; payment of contributions during active military service

A. A member of the system may receive credit for service for active military service if:

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

2. The period of military service for which the member receives credit for service does not exceed forty-eight months.

3. The period of military service for which the member receives credited service is not on account with any other retirement system.

B. Except as provided in subsection C, the cost to purchase the military service credit is based on the amount necessary to equal the increase in the actuarial present value of projected benefits resulting from the credit.

C. For a period of time of active military service but for not more than forty-eight months, an employer shall make employer contributions and member contributions for a person who was an active member of the system on the day before he began active military service, who satisfies the requirements of subsection A, paragraph 3 and who meets the following requirements:

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

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

3. Is honorably separated from active military service and returns to employment for the same employer from which he left for active military service within ninety days after the date active military service is terminated or is hospitalized as a result of military service and returns to employment for the same employer from which he left for active military service within ninety days after release from service related hospitalization or dies as a result of the military service.

D. Contributions made pursuant to subsection C shall be for the period of time beginning on the date the member began active military service and ending on 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. The date the member dies as a result of active military service.

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

F. The employer shall make contributions pursuant to subsection C based on the salary being received by the member immediately before the member volunteered or was ordered into active military service in a lump sum and without penalty when the member returns to employment or on receipt of the member's death certificate. If the 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 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. An applicant shall submit a copy of the military discharge certificate (DD-256A) and a copy of the military service record (DD-214) or its equivalent with the application when applying for the military service credit, except that members of the Arizona national guard and military reserves ordered into active military service as part of a presidential call-up are only required to submit a copy of the military service record (DD-214) or its equivalent.

I. Notwithstanding any other law, the member is not required to reimburse his employer or the system for any contribution made pursuant to subsection C.