An employee who begins employment in a CORP-designated position must become a member of CORP as stipulated by Arizona Revised Statute. Once a member starts making contributions to the plan, he begins earning credited service.

Upon enrollment, an employee working in a CORP-designated position must undergo a physical examination pursuant to A.R.S. 41-1822 (B). This examination is to be conducted by a doctor or clinic appointed by the Local Board. Corrections Officers (CO) who are required to complete a pre-employment medical examination conducted by the Recruitment Unit for Selection and Hiring (RUSH) before entering COTA are excluded from this requirement. Also, excluded from this requirement are employees who are required to take a pre-placement physical administered by the Department of Administration (ADOA), Occupational Health Unit, as a condition of employment.

The examination will be used to identify a member's physical or mental condition or injury that existed or occurred before the member's date of membership in CORP in the event he requests a disability retirement. Any employee who refuses to submit to the medical examination waives all rights to disability benefits under CORP. Medical examinations will not be used for the purposes of hiring, advancement, discharge, job training or other terms, conditions and privileges of employment unrelated to receipt or qualification for pension benefits or service credits from the fund.

Pre-enrollment examinations may be scheduled by calling the CORP Local Board office at (602) 771-2100. Employees who are on duty at the time they are scheduled for an examination may use state vehicles or be reimbursed for mileage in accordance with the Department of Corrections policy regarding travel.

The Local Board may specify a non-designated position within ADC as a CORP-designated position if the position is filled by an employee, who has at least five years of credited service under CORP who is transferred to temporarily fill the position. A written request to the Local Board to specify the position as a CORP designated position must be submitted within 90 days of filling the position. When the employee leaves the position, the position reverts to a non-designated position.

The Local Board may specify a CORP-designated position within ADC as a non-designated position if the position is filled by an employee who has a least five years of credited service under ASRS. A written request to the Local Board to specify the position as a non-designated position must be submitted within 90 days of accepting the position. When the employee leaves the position, the position reverts to a CORP-designated position. (Example: This applies to a member of ASRS who is hired by the Department of Corrections to fill a CORP designated position who wishes to remain in the ASRS system.)

Contributions

Member contributions of 8.5% are made by payroll deduction from the member's salary, on a pre-tax basis, and deposited into the member's individual account maintained by the Fund Manager for CORP. The current employer contribution rate is actuarially determined annually and may fluctuate from year to year.

Pretax

Effective July 1, 2000, retirement contributions to CORP will be made on a pretax basis. Contributions made on a pretax basis will defer taxation on a member’s contributions until retirement or until a member terminates employment and requests a refund of contributions.

Termination and Refund of Contributions

A member who terminates employment with LESS than five years of credited service, for any reason other than death or retirement, may apply for a refund of his retirement contributions on account with the Plan. Upon making application, the member is entitled to receive a lump-sum payment of the accumulated member contributions within 20 calendar days after the application for refund payment has been received in the office of the Fund Manager.

Members who terminate employment with five or MORE years of credited service are entitled to receive their contributions plus a percentage of additional monies according to the following schedule:

Years of Credited Service Percent (%) of Additional Contributions

Interest is calculated only for those members who, at the time of their termination, have ten (10) or more years of credited service and have left their contributions on account with CORP for more than 30 days after termination of employment and after that time period requests a refund of their contributions.

Federal Tax law requires CORP to withhold 20% of the amount of taxable monies of a member's contributions, when a member terminates employment with ADC and elects to receive a refund of his retirement contributions, unless a member chooses to have eligible (taxable) monies in his retirement account paid directly to another acceptable retirement plan of the State of Arizona or paid to an Individual Retirement Account (IRA) or annuities to which the member specifies. The distribution shall be made in the form of a direct trustee-to-trustee transfer to the specified retirement plan or IRA. The distribution shall be made in the form specified by the member and at the time prescribed by the Fund Manager.

A member with contributions since 7/13/1995 with TEN or more years of credited service who terminates employment with ADC before reaching an eligible age for retirement may apply to receive a retirement benefit when he reaches the age of 62 or when his age and credited service equals 80, provided the member has left his contributions on deposit with CORP.
Due to a change to the law, this provision does not exist for participants who began membership AFTER 7/13/1995.

A member shall forfeit credited service if his accumulated contributions on account with CORP are refunded due to termination of employment with ADC or if such contributions are transferred to an IRA.