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CREDITED SERVICE
Credited service is the amount of service time that a member earns by contributing to CORP. Credited service can also be earned by transferring service credits from another retirement system or plan for public employees of the State of Arizona to CORP. The amount of Credited service attributed to a member can affect the amount of the member's retirement benefit -- the more years of Credited service, the greater the benefit. A member is credited with service only during the time period a member is employed by ADC in a CORP-designated position and receiving compensation. In no case shall service be credited for any period during which the member is not employed by ADC in a CORP-designated position. Industrial Leave Members on industrial leave who wish to continue making their CORP retirement contributions must complete an application to continue accumulating credited service. If an employee on industrial leave elects to continue making retirement contributions to CORP while on industrial leave, the member and the employer will be required to make full contributions to CORP based on the salary the member would have received in his job classification if he were working. Partial contributions will not be accepted by CORP for employees on industrial leave. If a member chooses not to continue making retirement contributions while on industrial leave he will continue to accumulate years of service but will earn no credited service for the period of time he is on Industrial Leave. Leave of Absence With Pay When a member is on an approved paid leave of absence (sick leave; annual leave; Employee Recognition Leave; paid administrative leave; or suspension with pay) a member receives credited service for the time period that contributions are made to CORP. Leave of Absence Without Pay When a member is on leave without pay, i.e., (approved leave of absence; Long Term Disability; industrial leave; FMLA; or suspension without pay) the member does not receive credited service for that time. However, a member is credited with years of service (compensated and non-compensated periods of employment). A member who receives a suspension without pay of less than 80 hours will have retirement deducted in an amount equal to 8.5% of wages paid. (Example: A member who receives a 24 hour suspension is paid for 56 hours. 8.5% of the wages paid for 56 hours will be deducted for retirement). Lump sum payments for earned compensatory time is not counted as credited service. However, Shift Differential Pay and Holiday Pay are counted as credited service. Family Medical Leave (FMLA) A member receives credited service for PAID FMLA only. No contributions are withheld during UNPAID FMLA and the member accrues no credited service. Unpaid periods of FMLA are counted as leave without pay for retirement purposes. Re-employment/Repayment of Contributions (C1B form) A member previously employed by ADC, who received a refund of retirement contributions from CORP due to termination of employment, is eligible to redeem previously-forfeited credited service if he becomes re-employed with ADC within two years and satisfies the following conditions: The employee makes written application within 90 days of being re-employed to have forfeited credited service restored. However, before forfeited credited service is restored, the employee must pay the total amount owed within one year after reinstatement. The employee repays CORP the total amount previously withdrawn plus interest at the rate of 9% compound annually from the date of withdrawal to the date of repayment. Redemption of Prior Service (C2 form) Members who return to work after receiving a refund of their contributions and do not exercise their right to redeem previously forfeited credited service within the two-year time frame may apply at anytime during their employment to redeem all or any part of the previously forfeited credited service. The cost for redemption of this service is determined by the increase in the actuarial present value of the projected benefits as determined by the Fund Manager. Transfers (U2 form) An ADC employee who becomes an active contributing member of CORP may also transfer credited service from another Arizona retirement system or plan (ASRS, PSPRS, EORP) to CORP. This process must occur before the time of retirement. The member is responsible for initiating such a transfer and the payment of any additional accrued cash liabilities that may result from the transfer. Transfers and payment must be completed before the time of retirement. An ADC employee who, as a result of a change in employment, becomes ineligible to participate in CORP is entitled to have his CORP credited service transferred to the Arizona State Retirement Plan that governs his new position. A member of CORP employed by ADC in a CORP-designated position who terminates his employment and becomes re-employed by ADC in a non-designated position may have his credited service transferred to ASRS provided he has left his contributions on account with the fund. At any time upon returning to employment a member may purchase previously-forfeited credited service from another retirement plan of this State by paying the actuarial present value of the increase in future benefits related to such purchased service. Inter-System Transfers An ADC employee, who has contributions on account with another State of Arizona Retirement Plan or county agency that participates in CORP, may have his credited service on account with the previous employer transferred to his CORP account with ADC provided the member has left his contributions on account with the fund. Members who have terminated employment and left their money on account with any of the State retirement systems or plans, within Arizona, have the option to transfer service credits from that system back to the Arizona State system or plan of their choice provided the transfer does not cause either retirement system or plan to incur any unfounded accrued liability. Credit for Military Service A member may purchase up to 48 months of military time and receive credited service for retirement purposes for active military service if honorably discharged from military service. A member must pay the actuarial cost, as determined by the fund, of adding these years of credited service to CORP. Members may receive credited service for active military service if: The member was honorably separated. The period for which the member receives credit does not exceed forty-eight (48) months. (NOTE: Military time may be purchased while receiving a pension from the military.) Active Military Service ADC shall make both the employer and member retirement contribution for members who are on active military duty, not to exceed a period of forty-eight (48) months, based upon the salary the member received immediately before reporting to active duty if the member satisfies the following condition: Employee is a member of the Arizona National Guard or a member of the reserves of any military establishment of the United States. A member volunteers or is ordered into active military service of the United States as part of a presidential call-up. A member is honorably separated from active military service and returns to employment with ADC within 90 days after the date active military service is terminated. A member is hospitalized as a result of military service and returns to employment within 90 days after release or a member dies as a result of military service. An active member may purchase military credited service at any time before retirement. When applying for this service, the applicant must submit a copy of the military discharge certificate (DD-256A) and a copy of his military service record (DD-214) or its equivalent with an application to purchase military service to CORP, 1020 East Missouri, Phoenix, Arizona 85014.
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