To be eligible for RASL benefit you must
- be an active State employee at the time of retirement,
- apply for retirement with one of the authorized State of Arizona retirement systems immediately (within 31 calendar days of separation from State service),
- have at least 500 hours of accrued unused sick leave at the time of retirement, and
- apply in writing for the RASL benefit within 180 days of your retirement date by completing the RASL Certification Forms and returning it to the UA Payroll Department,
If you intend to take the deferred compensation option for your first payment, you must submit the completed RASL forms to the UA Payroll Department prior to separation from employment.
There are no extensions to these deadlines. If you do not meet them, you permanently and irrevocably forfeit this benefit.
- You must apply for retirement from one of the authorized State of Arizona retirement systems within 31 calendar days from your date of separation from State service.
- You must complete the RASL Certification Form and return it to UA Human Resources within 180 days of your retirement date.
Yes, RASL is considered earned income not a retirement benefit. Federal, FICA, and Medicare taxes are withheld on each installment. Arizona State tax is also withheld, even if you move to another state, because the income was earned in Arizona. Amounts rolled into a deferred compensation account are subject only to FICA and Medicare taxes.
Yes, you may roll over your first RASL payment into a 457(b) plan with the State-sponsored deferred compensation provider, Nationwide. Deferred compensation may benefit you if you expect your income to drop after your retirement.
Here are the steps to follow:
- Contact Klark Krauter at (800) 796-9753 or (520) 262-0348 to enroll in deferred compensation with Nationwide before your last day of UA service.
- Submit the Nationwide RASL Deferral Notification Form directly to Nationwide before your last day of UA service.
- Complete RASL Forms and submit to the Payroll Office before your last day of UA service.
The deferral amount will still be subject to FICA and Medicare withholdings.
The maximum total benefit is $30,000.
The RASL benefit value is calculated by multiplying the hourly pay rate at the time of separation by the number of unused sick leave hours (up to 1,500) multiplied by the appropriate following percentage:
Example: Your hourly rate of pay is $16.00 and you have 750 hours of accrued unused sick leave. $16.00 x 750 x .33 = $3,960.00 total RASL benefit.
The cash benefit is paid in equal installments over three years. You may elect to have the payments electronically deposited or mailed directly to your home address.
The RASL benefit cannot be accelerated. However, in the event of the retiree's death, the designated beneficiary is paid the remainder of the benefit.
No. State statute prohibits this benefit from being included as compensation for retirement purposes.
Send your completed RASL application to the Payroll Office in the University Services Building, 888 N. Euclid Ave, Room 402. Please label the envelope "RASL Application."