Arizona § 38-894 - Financial objective of the retirement plan; participating employer contributions
Full text of Arizona Arizona Revised Statutes § 38-894 — Financial objective of the retirement plan; participating employer contributions, with citation guidance and answers to common questions.
§ 38-894. Financial objective of the retirement plan; participating employer contributions
A. The financial objective of the retirement plan is to receive contributions each fiscal year which are sufficient to both:
1. Fund the actuarial cost of benefits likely to be paid on account of credited service earned by members during the fiscal year.
2. Fund the unfunded actuarial cost of benefits likely to be paid on account of credited service earned by members before the fiscal year over a period of not more than forty years. Contribution requirements shall be determined by an annual actuarial valuation using a generally recognized level per cent of payroll actuarial cost method.
B. The board may require an employer that proposes to become a participating employer after the plan has been in operation for more than one year to make supplemental contributions based on the excess of the actuarial costs associated with the proposed participation over the actuarial costs of the plan indicated by the last annual actuarial valuation of the plan. The amount of supplemental contributions shall be determined by actuarial valuation. The board may pay the cost of the actuarial valuation or may require the employer to pay the cost.
C. The board shall certify to each participating employer the amount of annual contribution needed to meet the financial objective and the participating employer shall appropriate and cause the contribution to be paid to the retirement plan.
D. Payment of contributions shall be made in accordance with the schedule adopted by the board. Payments not made in a timely manner are subject to an interest charge at rates established by the board.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 38-894
What does Arizona Revised Statutes § 38-894 cover?
Section 38-894 ("Financial objective of the retirement plan; participating employer contributions") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 38-894?
A common citation format is "Arizona Revised Statutes § 38-894" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 38-894 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.