AZ SB1107

Amends section 38-730 to simplify retirement service credit transfers by requiring transfers to be made pursuant to section 38-922 instead of specifying detailed payment calculations in that section.

Modifies section 38-762 to clarify survivor benefits for disabled children by replacing "handicapped child age twenty-one or older" with "natural or adopted child of any age who is disabled" and defines "disabled" as incapable of self-sustaining employment due to mental or physical handicap.

Updates section 38-764 to allow the board to determine a threshold amount for lump sum payments of benefits under twenty dollars per month instead of the fixed twenty dollar threshold, and restricts lump sum recipients from receiving benefit increases under section 38-767.

Expands section 38-770 to permit non-spouse designated beneficiaries to elect direct rollovers to eligible retirement plans and adds Roth individual retirement accounts as eligible rollover destinations effective January 1, 2008.

Amends section 38-773 to establish that if an alternate payee under a domestic relations order predeceases the member, payments cease and revert to the member, and updates section 38-922 to allow members to pay for service transfers through trustee-to-trustee transfers or direct rollovers from eligible plans.