Arizona Revised Statutes § 38-845.01 Maximum Annual Pension; Limitations; Definition

38-845.01. Maximum annual pension; limitations; definition

A. The maximum annual pension for a limitation year shall not exceed the following:

1. For limitation years beginning before 1995, the lesser of ninety thousand dollars, as indexed for inflation, or one hundred per cent of the member's average monthly benefit compensation.

2. For limitation years beginning in 1995 and ending before 2002, ninety thousand dollars, as indexed for inflation.

3. For limitation years ending in and after 2002, one hundred sixty thousand dollars, as indexed for inflation.

B. The limitations prescribed in subsection A shall be determined under section 415 of the internal revenue code and the regulations that are then in effect under that section.

C. Notwithstanding this section, the pension payable under this system may be reduced to the extent necessary, as determined by the system, to prevent disqualification of the system under section 415 of the internal revenue code, which imposes additional limitations on the pension payable to members who also may be participating in another tax qualified pension plan or other plan of this state. The system shall advise affected members of any additional limitation of their pension required by this section.

D. For the purposes of this section, " limitation year" means the system's fiscal year.

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Last modified: October 13, 2016