Charter School Employer Membership

R2-8-1003. Charter School Employer Membership A. Pursuant to A.R.S. § 15-187(C), a charter school in Arizona i s considered a political subdivision that is eligible to participat e in the ASRS if the charter school is sponsored by: 1. A state university; 2. A community college district; 3. A group of community college districts; 4. The state board of education; or 5. The state board for charter schools. B. In order to participate as an Employer in the ASRS, a charter school shall notify the ASRS in writing of the charter school’ s intent to join the ASRS and provide: Supp. Administrative Code ADMINISTRATION RETIREMENT SYSTEM BOARD 1. A copy of the current and active Charter Contract, including any amendments, which is approved by the entit y sponsoring the charter school pursuant to subsection (A); 2. Documentation showing the name and location of all schools authorized by the Charter Contract identified i n subsection (B)(1); and 3. Documentation showing the charter school board’ s approval to pursue ASRS membership and complet e ASRS requirements for membership. C. Upon receipt of the information contained in subsection (B), the ASRS shall determine if the charter school is eligible t o participate in the ASRS. If the charter school is not eligible t o participate in the ASRS, the ASRS shall send the charter school a notice of ineligibility. If the charter school is eligibl e to participate, the ASRS shall provide the charter school a Potential New Employer Letter. D. In order to participate as an Employer in the ASRS, an eligibl e charter school shall submit to the ASRS by the due date liste d on the Potential New Employer Letter: 1. The following original documents: a. The current retirement plan or a statement signed b y the designated authorized agent for the charter school acknowledging there is no current retirement plan. b. Two ASRS Agreements showing: i. The legal name and current mailing address of sub- the charter school as sponsored pursuant to section (A); ii. What amount of prior service the charter school shall purchase for employees pursuant to R2-8- 1006; iii. The approximate number of employees that will become members upon the effective dat e of the ASRS Agreement; iv. The name, title, email address, and telephon e number of the designated authorized agent for the charter school; v. The designated authorized agent is authorize d con- and directed to conduct all negotiations, clude all arrangements, and sign all document s necessary to administer the supplemental ASRS retirement plan pursuant to A.R.S. Titl e 38, Chapter 5, Articles 2 and 2.1; and vi. The ASRS Agreement is binding and irrevocable; vii. The effective date of the ASRS Agreement; viii. The charter school agrees to be bound by th e Arti- provisions of A.R.S. Title 38, Chapter 5, cle 2 and Article 2.1 unless otherwise indicate d by law; and autho- ix. The dated signature of the designated rized agent for the charter school. c. Two ASRS Resolutions showing: spon- i. The legal name of the charter school as sored pursuant to subsection (A); ii. The charter school is adopting a supplemental ASRS retirement plan pursuant to A.R.S. § 38- 729; iii. The charter school agrees to be bound by th e Arti- provisions of A.R.S. Title 38, Chapter 5, cle 2 and Article 2.1 unless otherwise indicate d by law; iv. The designated authorized agent for the charter school; 26-1 March 31, 2026 Arizona CHAPTER 8. STATE v. The designated authorized agent is authorize d and directed to conduct all negotiations, conclude all arrangements, and sign all document s necessary to administer the supplemental ASRS retirement plan pursuant to A.R.S. Titl e 38, Chapter 5, Articles 2 and 2.1; and vi. The dated and notarized signature of the designated authorized agent. 2. The following copies if the eligible charter school ha s elected coverage pursuant to a 218 Agreement: a. A 218 Agreement. If the charter school is electin g coverage pursuant to a 218 Agreement, the 21 8 Agreement must be completed and approved by th e Social Security Administration prior to joining th e ASRS. b. A 218 Resolution. The 218 Resolutions must b e completed and approved by the Social Securit y Administration prior to joining the ASRS. E. Upon receipt of Acceptable Documentation identified in subsection (D), the ASRS may approve the charter school’ s request for membership pursuant to A.R.S. § 38-729. If th e request to join the ASRS is approved, the ASRS Director shall sign the ASRS Agreements before the ASRS shall send one of each of the original documents identified in subsection (D) t o the charter school. F. Any charter school that is established under the charter contract of a participating charter school shall participate in th e ASRS. G. Upon joining the ASRS, a charter school has a one-tim e opportunity to identify and exclude current employees from ASRS membership based on a classification of those employees that is established by the charter school consistent wit h federal law and that is not designed to, and does not result in, the cost of providing the benefits to the charter school’ s employees being greater than the cost of providing benefits t o the employees of Employers as determined by the ASRS. H. A charter school that elects to identify and exclude a classification of employees according to subsection (G) shall provid e the ASRS with all information the ASRS requests in order fo r the ASRS to determine the cost of providing the benefits to th e charter school’s employees is not greater than the cost of providing benefits to the employees of Employers as determine d by the ASRS. I. Notwithstanding subsection (G), all other current and futur e eligi- employees of the charter school who meet membership bility requirements are required to participate in the ASRS a s of the effective date of the charter school joining the ASRS according to A.R.S. §§ 38-711 et seq. Historical Note New Section made by final rulemaking at 24 A.A.R. 3407, effective February 4, 2019 (Supp. 18-4). Amended by final rulemaking at 30 A.A.R. 742 (April 12, 2024), effective May 17, 2024 (Supp. 24-1).