Arkansas Public Employees' Retirement System

Ark. Code Ann. tit. 24, ch. 4

in effect

Ark. Code Ann. § 24-4-102 Penalty.

A person who knowingly makes a material false statement or who materially falsifies or permits to be materially falsified any record in an attempt to defraud the Arkansas Public Employees' Retirement System as the result of such an act upon conviction is guilty of a Class D felony in accordance with § 5-55-301.

Ark. Code Ann. § 24-4-103 Creation of retirement system.

(a) There is created and established a retirement system for the employees of the State of Arkansas and participating public employers to be known as the “Arkansas Public Employees' Retirement System”. (b) All business of the system shall be transacted through a board of trustees as provided for in this act.

Ark. Code Ann. § 24-4-104 Board of trustees — Creation — Members.

(a) The administration and control of the Arkansas Public Employees’ Retirement System shall be vested in a board called the “Board of Trustees of the Arkansas Public Employees’ Retirement System”. (b) The board shall consist of the following members: (1) The Auditor of State, the Treasurer of State, and the Secretary of the Department of Finance and Administration shall be ex officio members; (2)(A) Three (3) members who are state employees and three (3) members who are nonstate employees to be appointed by the Governor. (B) Each nonstate employee trustee and each state employee trustee shall have at least five (5) continuous years of service with a public employer or employers and shall be a member of the Arkansas Public Employees’ Retirement System. (C)(i) No more than one (1) of the three (3) members who are nonstate employee trustees appointed by the Governor shall be a retired member of the Arkansas Public Employees’ Retirement System. (ii) No more than one (1) of the three (3) members who are state employee trustees appointed by the Governor shall be a retired member of the Arkansas Public Employees’ Retirement System. (D) The three (3) nonstate employee trustees shall consist of at least one (1) currently elected county judge and at least one (1) mayor. (E) Subdivisions (b)(2)(B)-(D) of this section do not apply to members appointed under subdivisions (b)(3) and (4) of this section; (3)(A) Two (2) members who retired from employment covered by the Arkansas Public Employees’ Retirement System to be appointed by the President Pro Tempore of the Senate. (B) One (1) of the members described in subdivision (b)(3)(A) of this section shall be a retired law enforcement officer who is not a retired member of the State Police Retirement System; and (4)(A) Two (2) members who retired from employment covered by the Arkansas Public Employees’ Retirement System to be appointed by the Speaker of the House of Representatives. (B) One (1) of the members described in subdivision (b)(4)(A) of this section shall be a retired law enforcement officer who is not a retired member of the State Police Retirement System. (5) The Secretary of the Department of Shared Administrative Services; and (6) The Bank Commissioner. (c)(1) The term of office of appointed trustees shall be six (6) years. (2)(A) The Governor shall declare a vacancy on the board when a: (i) Nonstate employee trustee leaves the employ of a participating public employer; (ii) State employee trustee leaves state employment; (iii) Member who is a nonstate employee trustee retires and there is another retired member of the Arkansas Public Employees’ Retirement System who is a nonstate employee trustee on the board; and (iv) Member who is a state employee trustee retires and there is another retired member of the Arkansas Public Employees’ Retirement System who is a state employee trustee on the board. (B) A vacancy declared under subdivisions (c)(2)(A)(iii) and (iv) of this section shall be for the seat of the newly retired trustee. (C) The Governor shall appoint a state employee member or a nonstate employee member to fill the vacancy for the remainder of the unexpired term within thirty (30) days of the date on which the vacancy is declared. (d)(1) Annually, the board shall select from its membership a chair and a vice chair. (2) The board shall appoint an Executive Director of the Arkansas Public Employees’ Retirement System who shall be the executive administrative officer of the Arkansas Public Employees' Retirement System and shall also be ex officio secretary of the board, but who shall have no vote on questions before the board and who shall be directly responsible to the board. (3) By resolution duly adopted, the board may delegate to the executive director any of the powers and duties vested in or imposed upon it by law. (4) Within such limitations as may be contained in legislative appropriations therefor, the executive director, subject to the approval of the board, may employ and fix the compensation of such secretarial, clerical, professional, and other personnel as may be required for the proper administration of the Arkansas Public Employees’ Retirement System.

Ark. Code Ann. § 24-4-105 Board of trustees — Meetings — Powers and duties.

(a)(1) The Board of Trustees of the Arkansas Public Employees' Retirement System shall hold meetings regularly, at least one (1) meeting in each quarter year, and shall designate the time and place of the meeting. (2) Special meetings may be held in accordance with such rules as the board shall adopt from time to time. (3) Five (5) trustees shall constitute a quorum at any meeting of the board, and at least five (5) concurring votes shall be necessary for a decision by the board at any of its meetings. (b) In addition to such other duties as are imposed upon the board by this act, the board shall: (1) Make all rules as it shall deem necessary from time to time in the transaction of its business and in administering the Arkansas Public Employees' Retirement System; (2) Provide for the administrative direction and control of the Executive Director of the Arkansas Public Employees' Retirement System and such clerical staff as may be required in the administration of the system; (3) Provide for an actuarial valuation of the system as may be deemed necessary by the board; (4) Exercise discretionary power and authority in the investments of, and disbursements of, the funds of the system, subject to the provisions of this act; (5) Adopt such mortality and other tables of experience, and a rate or rates of interest, as shall be required in the proper operation of the system; (6) Perform the duties of trustee without additional compensation therefor, but may receive expense reimbursement in accordance with § 25-16-901 et seq.; and (7) Do any and all things necessary for the proper administration of the system and for carrying out and making effective the provisions of this act.

Ark. Code Ann. § 24-4-106 Limitations — Definition.

(a)(1)(A) Notwithstanding any provisions to the contrary, it is considered sound public policy to limit contributions by public employers to one (1) state-authorized retirement plan. Accordingly, effective July 1, 1999, employers participating in the Arkansas Public Employees' Retirement System shall not establish any other state-authorized plan that requires contributions by the employer. (B) The Board of Trustees of the Arkansas Public Employees' Retirement System shall promulgate such rules as are required to prohibit the establishment of such plans in the future. (2) An employer that, in addition to participating in the system, has another state-authorized plan that was in existence on July 1, 1999, shall not be prohibited from: (A) Changing vendors for the plan; (B) Adding employees to the plan; or (C) Modifying a plan pursuant to federal guidelines. (3) If an employer merges with another employer and either employer has a plan that was in existence on July 1, 1999, then the merged entity may continue to provide the plan for employees of the entity. (b) The system shall notify all participating employers on an annual basis of the requirements of this section and the board rules governing this subject. (c) For the purpose of this section, “state-authorized plan” means any retirement plan authorized by state or federal law.

Ark. Code Ann. § 24-4-107 Proposals to establish or revise.

The Board of Trustees of the Arkansas Public Employees' Retirement System shall present to the Joint Committee on Public Retirement and Social Security Programs information concerning the statutory authority and actuarial appropriateness of proposed board actions to establish or revise a multiplier, any benefit, or a provision of a deferred retirement option plan.

Ark. Code Ann. § 24-4-108 Implementation of contributory component.

(a)(1) It shall be considered sound public policy to encourage public employees in the State of Arkansas to participate in the development and growth of their individual retirement benefits. (2) In order that the Arkansas Public Employees' Retirement System continues to maintain a strong funded status while ensuring that benefits provided to the annuitants and beneficiaries of the system maintain a constant purchasing power, it is incumbent upon the Board of Trustees of the Arkansas Public Employees' Retirement System to consider reintroducing employee contributions as a required provision of the plan structure. (b)(1) In accordance with the rules of the board, there shall be an annual review of the actuarial valuation of the plan as provided by its actuary. (2) During each annual review, the board shall consider the actuarial appropriateness of establishing a contributory component within the system. (3) Issues to be considered are to include, but not be limited to: (A) Mitigating additional increases in the employer contribution rate; (B) The establishment of a tax deferral of employee contributions under the Internal Revenue Code of 1986, 26 U.S.C.S. § 414(h), as in effect on January 1, 2003; (C) The establishment of a time horizon in which current system members may elect contributory status; and (D) The extent of benefit portability. (c)(1) Beginning July 1, 2005, the board shall implement and establish a contributory plan for members of the system. (2) The board shall develop policies and rules from its annual review of the contributory component of the system and, as a minimum, the board's rules shall provide for: (A) The member contribution rate; (B) The annual multiplier rate for benefits that a contributory member of the system shall receive upon becoming eligible to receive a retirement benefit; (C) The combining of contributory and noncontributory service together to receive a retirement benefit from the system; and (D) Any other contributory qualifications or requirements necessary to implement the contributory plan for the system.

Ark. Code Ann. § 24-4-109 Compliance with federal regulation.

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System shall promulgate rules as it deems necessary from time to time in order to fully comply with federal requirements that may affect the members or the members' benefits under this subchapter. (b) In meeting its obligation to its members, the board may promulgate rules to: (1) Establish the regular retirement age for members consistent with the provisions of the Internal Revenue Code, 26 U.S.C.S. § 411; and (2) Maintain the Arkansas Public Employees' Retirement System's retirement plan tax qualification status by the federal government to remain tax exempt and tax qualified under the Internal Revenue Code, 26 U.S.C. § 401(a).

Ark. Code Ann. § 24-4-201 Arkansas Public Employees' Retirement System Fund — Creation — System accounts.

(a)(1) There is established on the books of the Treasurer of State, the Auditor of State, and the Secretary of the Department of Finance and Administration a fund to be known as the “Arkansas Public Employees' Retirement System Fund”. (2) This fund shall consist of trust funds as provided by law and shall be used for the payment of personal services, operating expenses, investments, benefits, refunds, and for such other purposes as may be authorized by law. (b)(1) The Board of Trustees of the Arkansas Public Employees' Retirement System shall have the authority to establish a division or divisions for the various participating employers as necessary to administer the Arkansas Public Employees' Retirement System. (2) The retirement system accounts shall be the members' deposit account, the employers' accumulation account, the retirement reserve account, the income account, and such other accounts as the board shall establish from time to time.

Ark. Code Ann. § 24-4-202 Arkansas Public Employees' Retirement System Fund — Contributions.

(a)(1) On or after July 1, 2017, the state employer contributions made by a state agency which employs each member provided for in § 24-2-701 shall be: (A) Reported electronically by the state agency through the Arkansas Public Employees' Retirement System portal; and (B) Paid by electronic transfer by the state agency. (2) The employer's contribution shall be paid to the Arkansas Public Employees' Retirement System Fund at the time and with the frequency established by the Board of Trustees of the Arkansas Public Employees' Retirement System and shall be paid concurrently with the contributions made by its employees to the Arkansas Public Employees' Retirement System Fund. (b)(1) In the case of employees receiving part or all of their compensation from federal funds, the disbursing officer of the agency receiving the federal funds shall transmit such sums to the Arkansas Public Employees' Retirement System Fund from federal funds of the agency. (2) These sums shall be those sums of money which are necessary to provide the employer contributions provided for in § 24-2-701, based on the portions of the employees' compensation payable from federal funds. (c)(1) In the case of the Local Government Division of the Arkansas Public Employees' Retirement System, each participating public employer shall pay into the Arkansas Public Employees' Retirement System Fund such sums of money as are necessary to provide the participating public employer's contributions provided for in § 24-2-701. (2)(A) The participating public employer's contributions shall be paid at the time and with the frequency established by the board and shall be paid concurrently with the contributions made by its employees to the Arkansas Public Employees' Retirement System Fund. (B) On or after July 1, 2017, the contributions made by a participating public employer shall be made by electronic transfer. (3) The employer's contributions shall be transmitted to the Arkansas Public Employees' Retirement System Fund in such form and manner, together with such supporting data, as the board shall prescribe from time to time. (d) In the case of circuit court reporters, the public employer contributions shall be paid, when directed by the board, by the respective counties in the proportion that each county pays the total salaries of the circuit court reporters. (e)(1) If any participating public employer fails to remit to the Arkansas Public Employees' Retirement System those moneys which are required by law or rule by the date and at the frequency established by the board, the system shall impose a penalty equal to the actuarially assumed rate of return on investments of the Arkansas Public Employees' Retirement System Fund in the form of interest on an annual basis on the moneys due. (2) This interest shall be computed on the actual days of delinquency and shall be paid to the system for the purpose of reimbursing the trust fund for the money which would have been earned on the moneys had they been paid when due. (3) The interest penalty shall be determined by the system on the date the delinquent funds are received, and a statement of the interest shall be sent to the participating public employer. (4) If the interest penalty or delinquent moneys are not received by the system by the last business day of the month in which the moneys were originally due, then the system shall cause the sums of moneys, including interest, to be transferred from any moneys due the participating public employer from the office of the Treasurer of State or the Department of Education as approved in § 19-20-106(a)(4). (f)(1) If any participating public employer fails to file with the system the retirement report by the date established by the board, the system shall impose a penalty of one hundred fifty dollars ($150) for each time the report is late. (2) A statement of the penalty shall be sent to the participating employer. (3) If the penalty is not received by the last business day of the month in which the report was due, then the system shall cause the amount to be transferred from any moneys due the participating public employer from the office of the Treasurer of State or the Department of Education as provided in § 19-20-106(a)(4). (g)(1) A participating public employer shall submit a written request for a temporary waiver to the Board of Trustees of the Arkansas Public Employees' Retirement System on or before July 1, 2017, when the participating public employer is unable to: (A) Report contributions electronically through the Arkansas Public Employees' Retirement System; or (B) Pay contributions by electronic transfer. (2) A request for a temporary waiver shall include a timeline for when the participating public employer will be able to comply with payment and reporting requirements under this section. (h) A participating public employer shall promptly upon request by the Arkansas Public Employees' Retirement System provide all information requested concerning the status of an employee to the system. (i) It is the sole responsibility of the reporting participating public employer to ensure that the information provided by the participating public employer, including without limitation the participating public employer's wage reporting and contribution remittances, is accurate.

Ark. Code Ann. § 24-4-205 State as trustee.

The promulgation of this chapter shall constitute an offer by the state to serve as trustee for the funds collected under the provisions of this chapter, as well as a guarantee that the disbursement thereof shall be in accordance with the provisions of this chapter and that none of the funds shall be used for any purpose except the purposes provided for in this Act.

Ark. Code Ann. § 24-4-206 Funding — Additional liabilities — Local Government Division.

(a)(1) Whenever the General Assembly shall enact any laws which create additional eligibility or liabilities for county constitutional officers or for county employees or municipal employees of the Arkansas Public Employees' Retirement System and the Board of Trustees of the Arkansas Public Employees' Retirement System shall determine, based upon actuarial valuation, that the method of funding the additional liabilities is not sufficient to meet the unfunded obligations created by the additional benefit or eligibility provision, then the procedures established in this section shall be followed in providing the necessary moneys to actuarially fund the additional liabilities. (2)(A) The Executive Director of the Arkansas Public Employees' Retirement System shall cause an actuarial valuation to be made of the additional liabilities created by the laws. (B) In the event the actuary determines that the employee and employer contributions are actuarially insufficient to pay the benefits of the elected county constitutional officer members or county or municipal employee members of the Local Government Division of the Arkansas Public Employees' Retirement System, the director shall establish accounts and records to identify the estimated contributions and other income available to actuarially fund the members' benefits when they mature, as well as the extent that each county's member liabilities will exceed the amount of employee and employer contributions and interest thereon. (b)(1) The director shall then calculate, with the assistance of the actuary, the amount of funds required annually or on a lump-sum basis to actuarially fund the additional unfunded liabilities created by the laws with respect to members from each county or municipality. He or she shall annually or on a lump-sum basis certify to the Chief Fiscal Officer of the State the amount required for the year or on a lump-sum basis to establish sufficient funds and reserves to meet the actuarial requirements of the additional benefits. (2) The certificate of the Chief Fiscal Officer of the State shall reflect the amount of the annual extra payment to be charged against each of the several counties and municipalities, based on the unfunded liabilities with respect to their officials and employee members of the Local Government Division. (3) The Chief Fiscal Officer of the State shall cause the amount so certified to be transferred from the County Aid Fund or from the Municipal Aid Fund, as the case may be, from general revenues allocated thereto for turnback to counties or municipalities to the Arkansas Public Employees' Retirement System Fund for credit to the Local Government Division of the Arkansas Public Employees' Retirement System. (4) From the general revenues allocated thereto for turnback to counties or municipalities, the Chief Fiscal Officer of the State shall deduct from the County Aid Fund turnback to be received by each county an amount as computed pursuant to this section required to pay retirement benefits for its elected county constitutional officer members, and for its county employee members of the Local Government Division of the Arkansas Public Employees' Retirement System. (5) From general revenues allocated thereto for turnback to municipalities, the Chief Fiscal Officer of the State shall deduct from the Municipal Aid Fund turnback to be received by each municipality an amount, payable upon actuarial determination, required to pay retirement benefits for their municipal employee members from each of the respective municipalities. (6)(A) The moneys to be transferred from the County Aid Fund and the Municipal Aid Fund shall not be charged against the total of the county aid or municipal aid funds available for distribution to counties or municipalities. (B) It is the intent of this section that each county pay annually from its County Aid Fund general revenues turnback, and that each municipality pay annually from its Municipal Aid Fund general revenues turnback, the amount of money required to meet the unfunded liability deficit in behalf of its respective county and municipal employee members of the system resulting from the enactment of the laws.

Ark. Code Ann. § 24-4-207 Bonds — Payments on vouchers and warrants — Adjustment of erroneous payments.

(a)(1) The Executive Director of the Arkansas Public Employees' Retirement System and other employees shall make bonds to cover their liability for the faithful performance of their duties, from time to time as provided for by law. (2) The cost of the bonds shall be paid from moneys provided for the administrative expenses of the Arkansas Public Employees' Retirement System. (3) The Secretary of the Department of Finance and Administration is authorized and directed to designate such additional personnel within his or her office and to provide for such services as are necessary for the proper operation of the system. (b)(1) The Treasurer of State shall pay annuities and make other disbursements authorized by this act only on vouchers signed by the Executive Director of the Arkansas Public Employees' Retirement System and on warrants issued thereon by the Auditor of State. (2) No voucher or warrant shall be drawn on funds of the system unless it has been previously authorized by a specific or general resolution adopted by the Board of Trustees of the Arkansas Public Employees' Retirement System. (c)(1)(A) Should any change or error in the records of the system or any audit of a member's annuity calculations result in any person's receiving more or less than the person would have been entitled to receive had the records or the calculations been correct, the board shall correct the error and, as far as is equitable and practicable, shall adjust the payment in accordance with the provisions of this subsection and in such a manner that the actuarial equivalent of the benefit to which the person was correctly entitled shall be paid. (B) However, no monthly adjustment of less than one dollar ($1.00) shall be made. (2)(A) The board shall have the right to recover any overpayment that any person may have received from funds of the system, provided the overpayment is determined and the person is so notified within one (1) year of the date of the last overpayment. (B) If the overpayment is determined at a date later than one (1) year after the date of the last overpayment, the overpayment shall not be recouped by the board unless the overpayment is a result of an error on the part of a member, retirant, or beneficiary. (C) In all instances where an overpayment is determined, any subsequent payments shall be adjusted to the correct amount. (3) If it is determined that any person has received an underpayment from the funds of the system, regardless of the date of the determination, the system shall pay in a lump sum to the person the total of any underpayments made prior to the date of determination, and any subsequent payments shall be adjusted to the correct amount. (4)(A) If the annuity amount is decreased upon the reconsideration, the matters involved in the decrease shall be set forth in writing and shall be subject to review upon the filing of an appeal thereof by the member or annuity recipient. (B) The redetermination shall be deemed to be final and binding on all parties unless, within twenty (20) days after the mailing of notice of the redetermination to the member's last known address, or twenty (20) days after personal delivery of the notice to the member, an appeal thereof is filed with the Executive Director of the Arkansas Public Employees' Retirement System. (C) The Secretary of the Department of Finance and Administration shall promptly hear all appeals of annuity determinations or redeterminations and shall conduct such hearings in accordance with procedures set forth by the board.

Ark. Code Ann. § 24-4-208 Reduction of annuities when funds inadequate.

(a)(1) If, at the end of any fiscal year, the total of the annuities paid during the fiscal year from the State Division of the retirement reserve account is more than twelve percent (12%) of the sum of the balances in the State Division of the Arkansas Public Employees' Retirement System of the employers' accumulation account and the retirement reserve account at the end of the fiscal year, the annuities payable to state retirants and beneficiaries in the ensuing fiscal year shall be reduced pro rata. (2) This reduction shall be made in such a manner that the total of the annuities so reduced shall not exceed twelve percent (12%) of the sum of the balances in the State Division of the employers' accumulation account and the retirement reserve account. (3) The pro rata reduction shall be applied to all annuities payable to state retirants and beneficiaries during the ensuing fiscal year. (b)(1) If, at the end of any fiscal year, the total of the annuities paid during the fiscal year from the Local Government Division of the Arkansas Public Employees' Retirement System of the retirement reserve account is more than twelve percent (12%) of the sum of the balances in the Local Government Division of the employers' accumulation account and the retirement reserve account at the end of the fiscal year, then the annuities payable to county retirants and beneficiaries in the ensuing fiscal year shall be reduced pro rata. (2) This reduction shall be made in such a manner that the total of the annuities so reduced shall not exceed twelve percent (12%) of the sum of the balances in the Local Government Division of the employers' accumulation account and the retirement reserve account. (3) The pro rata reduction shall be applied to all annuities payable to local government retirants and beneficiaries during the ensuing fiscal year.

Ark. Code Ann. § 24-4-209 Interest.

(a) At the end of each fiscal year, the Board of Trustees of the Arkansas Public Employees' Retirement System may allow the crediting of interest at an amount to be determined on the balance at the beginning of the fiscal year in the members' deposit account and the employers' accumulation account. (b) The board shall be required to allow regular interest at the end of each fiscal year on the year's mean balance in the retirement reserve account. (c) The interest allowed under subsections (a) and (b) of this section shall be credited annually by the board to the accounts and shall be paid from the income account.

Ark. Code Ann. § 24-4-210 Transfer of funds to cover retired county constitutional officers.

(a)(1) On July 1, 1979, the actuary for the Arkansas Public Employees' Retirement System shall make a determination of the amount necessary to be collected on a monthly basis during the ensuing one hundred twenty (120) months to set up the Retirement Reserve Fund for all persons retired as elected county constitutional officers on July 1, 1978. (2) The amount, as determined by the actuary, shall be certified by the Board of Trustees of the Arkansas Public Employees' Retirement System to the Chief Fiscal Officer of the State. He or she shall in turn cause the amount so certified to be transferred in equal monthly installments from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision. (3) The amounts so certified shall also include regular interest which would have been collected by the system. (b)(1) As additional persons are retired under the provisions of the County Constitutional Officers' Subdivision after July 1, 1978, the retirement reserve amount as determined by the system's actuary shall be certified to the Chief Fiscal Officer of the State by the board. (2) The Chief Fiscal Officer of the State shall then cause the amount so certified to be transferred in one (1) lump sum from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision.

Ark. Code Ann. § 24-4-211 Disposition of funds returned to hospitals withdrawing from system.

Any hospital excluding its employees from the Arkansas Public Employees' Retirement System and receiving a return of any funds as provided in § 24-4-302(3) shall immediately invest the funds in a retirement system or plan for the employees of the hospital.

Ark. Code Ann. § 24-4-212 No waiver of sovereign immunity.

Nothing in this chapter shall be taken or interpreted as a waiver of the state's sovereign immunity.

Ark. Code Ann. § 24-4-213 Socially responsible investments.

A decision on whether to invest, not invest, or withdraw from investment the funds of the Arkansas Public Employees' Retirement System shall not be based on a consideration that the location of the investment, fund, company, or any other type of investment vehicle is in the State of Israel.

Ark. Code Ann. § 24-4-214 Transfers for administrative functions of Arkansas Public Employees' Retirement System.

(a)(1) Beginning July 1, 2027, and thereafter, a sum shall be transferred each fiscal year from the Judges Retirement Fund to the Arkansas Public Employees' Retirement System as necessary for costs incurred by the Arkansas Public Employees' Retirement System in administering the Arkansas Judicial Retirement System. (2) The sum to be transferred shall be the percentage of the Arkansas Public Employees’ Retirement System’s total cost of administration calculated using a 50/50 weighted average of the Arkansas Judicial Retirement System’s pro-rata percentage of total invested assets and pro-rata percentage of total membership. (3) The transfer request shall be made to the Chief Fiscal Officer of the State, and upon his or her approval, the transfer shall be made on the books of the: (A) Chief Fiscal Officer of the State; (B) The Treasurer of State; and (C) The Auditor of State. (b)(1) Beginning July 1, 2027, and thereafter, a sum shall be transferred each fiscal year from the State Police Retirement Fund to the Arkansas Public Employees' Retirement System as necessary for costs incurred by the Arkansas Public Employees' Retirement System in administering the State Police Retirement System. (2) The sum to be transferred shall be the percentage of the Arkansas Public Employees’ Retirement System’s total cost of administration calculated using a 50/50 weighted average of the State Police Retirement System’s pro-rata percentage of total invested assets and pro-rata percentage of total membership. (3) The transfer request shall be made to the Chief Fiscal Officer of the State, and upon his or her approval, the transfer shall be made on the books of the: (A) Chief Fiscal Officer of the State; (B) The Treasurer of State; and (C) The Auditor of State. (c) As used in this section: (1) “Total invested assets” means the combined value of the investment assets of the Arkansas Public Employees’ Retirement System, the Arkansas Judicial Retirement System, and the State Police Retirement System at the end of each fiscal year; and (2) “Total membership” means the combined number of active, inactive, and retired members covered by the Arkansas Public Employees’ Retirement System, the Arkansas Judicial Retirement System, and the State Police Retirement System at the end of each fiscal year.

Ark. Code Ann. § 24-4-301 Membership as condition to employment.

(a)(1) Except as set forth in this subsection, all state employees, as defined in § 24-4-101(17) and (45), shall become members of the Arkansas Public Employees' Retirement System as a condition of employment. (2)(A)(i)(a) A person who is first elected as a member of the General Assembly on or after July 1, 1999, shall have his or her employment covered as a regular state employee member in lieu of coverage under special provisions relating to General Assembly members or to elected officials. (b) However, if the member's only service under an Arkansas retirement plan, as provided under § 24-2-401 et seq., is service as a member of the General Assembly, then the member must have ten (10) or more years of actual service to be eligible for benefits. (ii)(a) A person who was first elected as a member of the General Assembly before July 1, 1999, may elect to have his or her employment covered as a regular state employee member in lieu of coverage under special provisions relating to General Assembly members or to elected officials. The member may make the election at any time. (b) However, if the member's only service under an Arkansas retirement plan is service as a member of the General Assembly, then the member must have ten (10) or more years of actual service to be eligible for benefits. (B) Any member of the General Assembly who was serving in that capacity at the commencement of the Eighty-fourth General Assembly and who had elected not to participate in the Arkansas Public Employees' Retirement System under the provisions of § 24-4-301(a)(2)(A) prior to its amendment by Acts 2003, No. 1403, may elect to participate and receive current credit in the system. The member is eligible to receive prior service credit for the time he or she was first elected to the General Assembly until the date of election to participate provided that: (i) The member pays, or causes to be paid, all employer contributions based on the employer's normal cost from the most recent actuarial valuation and the compensation that would have been paid had he or she been a member of the system during that time and regular interest on the employer contributions computed from the date the service was rendered to the date payment is received by the system; (ii) The payment shall be made in a lump sum; and (iii) The member may pay for all prior service, or a portion of the prior service, consisting of one-year increments. (b) All county employees, as defined in § 24-4-101(14), (17), and (27), who are in the employ of a county July 1, 1959, and all persons who became or become county employees in the employ of a county after June 30, 1959, shall become members of the system as a condition of continuing in or obtaining county employment, as the case may be. (c) All municipal employees, as defined in § 24-4-101(17), (24), and (27), who are in the employ of a municipality as of the date the municipality becomes a participating public employer and all persons who become municipal employees in the employ of a municipality on or after the date it becomes a participating public employer shall become members of the system as a condition of continuing in or entering the employ of the municipality. However, no employee shall be included whose compensation is less than one thousand five hundred dollars ($1,500) per annum. (d) All nonstate employees, as defined in § 24-4-101(17), (22), (27), and (33), who are in the employ of a nonstate employer as of the date the nonstate employer becomes a participating public employer and all persons who become nonstate employees in the employ of a nonstate employer on or after the date it becomes a participating public employer shall become members of the system as a condition of continuing in or entering the employ of the nonstate employer. (e)(1) From and after July 1, 1973, all elected and appointed state and county constitutional officials shall be or become members of the system. (2) Any current member of the system who has service prior to July 1, 1973, as an elected or appointed constitutional official, which service is not credited to his or her retirement account because the member elected not to become a member of the system during that time, shall receive credited service for that time, but only if: (A) The person is a contributing member of the system on the date the service is purchased and the person has at the time of purchase at least two (2) years of credited service in the system; (B) The member buys all of the service rendered during the period of time in which he or she did not participate in the system; and (C) The member pays or causes to be paid all employee contributions at the rate and on the compensation that would have been paid had he or she been a member of the system during that period of time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system.

Ark. Code Ann. § 24-4-302 County employees included — Exceptions.

All counties in this state shall be subject to the provisions of this act as participating public employers, and all counties shall, from and after July 30, 1959, include their employees, as defined in § 24-4-101(14) , (17), and (27), in the membership of the Arkansas Public Employees' Retirement System, except as follows: (1) Any newly constructed county-owned and operated hospital which was first placed in use after December 1, 1975, may elect, by at least a two-thirds (2/3) vote of its governing body, to exclude the employees of the hospital from membership in the system, but only if the election was certified to the Board of Trustees of the Arkansas Public Employees' Retirement System prior to July 1, 1976. However, any hospital electing to exclude its employees from membership under the provisions of this subdivision (1) shall require its employees to become members of the system effective July 1, 1978; (2) A hospital which is owned but not operated by a county and which, subsequent to June 30, 1963, becomes operated by a county, may elect, by at least a two-thirds (2/3) vote of its governing body, to exclude its employees of the hospital from membership in the system, but only if the election is certified to the board within a period of one (1) year from and after the date the hospital becomes operated by a county; (3)(A) In the event the governing body of a county-owned and operated hospital elects to exclude its employees from membership in the system, the employees of the hospital shall thereupon cease to be members of the system. (B) Any balances standing to the credit of the members in the members' deposit account shall be returned to the members. (C) If any hospital elects, after February 1, 1971, and prior to July 1, 1972, to exclude its members from the system, the contributions made to the system by or on behalf of the hospital that are in excess of the amounts determined by actuarial calculations to be necessary to fund the outstanding obligations of the system to employees of the withdrawing hospital shall be returned to the withdrawing hospital; (4)(A) A hospital which, as of June 30, 1988, is owned and operated by a county and which has failed to participate in the system may elect to exclude the employees of the hospital from membership in the system by at least a two-thirds (2/3) vote of its governing body. (B) Neither employees of the hospital nor the hospital itself shall be liable or eligible to pay any past contribution which may have been due the system, but only if the election is certified to the board prior to July 1, 1990; and (5) A nursing home, assisted living facility, or healthcare facility that is: (A) Owned but not operated by a county may elect by a vote of at least two-thirds (2/3) of its governing body to exclude employees of the facility from membership in the system but only if the election is certified to the board within one (1) year from March 25, 2011; and (B) Constructed or acquired by a county after March 25, 2011, but not operated by a county may elect by a vote of at least two-thirds (2/3) of its governing body to exclude employees of the facility from membership in the system but only if the election is certified to the board within one (1) year from the date of the beginning of operations after construction or acquisition.

Ark. Code Ann. § 24-4-303 Membership — Election by municipalities — Leased water and sewer utilities.

(a)(1)(A) Any municipality may elect to become a participating public employer and to cover its employees under the Arkansas Public Employees' Retirement System either by a three-fifths (3/5) vote of its governing body or by a majority vote of the qualified voters of the municipality. (B) However, the mayor and city clerk of a city of the first class who are serving in a municipality that participates in the system shall become participating employees under the system upon taking office. (C)(i) If the employee elects not to continue participation in the system and opts to participate in the local retirement plan as provided under § 24-12-121 or § 24-12-123, instead, written notice of the election shall be presented to the system in a form determined acceptable by the system not later than ninety (90) calendar days after first assuming office. (ii) The election under subdivision (a)(1)(C)(i) of this section is irrevocable. (iii) Employer contributions made to the system on behalf of employees who elect not to continue participation will be refunded to the city without interest, and the associated service credit in the system is forfeited. (2) If a newly elected city attorney or city treasurer of a city of the first class is otherwise covered under a local retirement fund, then the provisions of subdivisions (a)(1)(B) and (C) of this section also apply to those offices. (3) The clerk or recorder of each municipality electing to become a participating public employer shall certify the vote to the Board of Trustees of the Arkansas Public Employees' Retirement System within ten (10) days after the vote of the governing body or the canvass of the votes of the electorate, as the case may be. (4) The effective date of coverage under the system shall be either the first day of the calendar month next following receipt by the board of the election results or the July 1 next following the receipt, as determined by the vote. (5)(A) If a municipal employee or a former municipal employee covered by the system in a municipality with a city administration of justice fund created under § 16-10-308 that exists to provide a pension fund for the position held by the employee or former employee elects to establish participation in the public retirement system under § 24-12-101 et seq., and to waive any rights the employee or former employee may have had, or would otherwise have, in the local retirement system, then: (i) The employee or former employee may transfer his or her service credit to the system; and (ii) The municipality for which he or she is or was serving in the capacity as a district judge, may use the funds within the city's administration of justice fund to pay all contributions and interest required by the system to transfer the service credit to the system. (B) In addition, if any employee or former employee covered by the city's administration of justice fund has transferred or does transfer service credit to the system anytime after January 1, 2000, and if the municipality has used general revenue funds to pay the contribution required to fund the transfer, or if the municipality has used the city's administration of justice fund to fund the transfer, then the city's administration of justice fund shall not be refunded. However, if general funds were used, the city may reimburse the general fund from the city's administration of justice fund for the contribution paid on behalf of the employee or former employee. (C)(i) In addition to paying for the transfer of service credit for the position for which the fund is created, the municipality may also pay from the city's administration of justice fund on behalf of the employee or former employee for any additional transfer of service credit the employee or former employee elects to make regarding time as city attorney for the municipality. (ii) The municipality may reimburse itself for any payment from the city's administration of justice fund to fund the transfer made from its general fund after January 1, 2000, on behalf of the employee or former employee to purchase city attorney service credit in the system. (iii) If any payment for the service has been made directly from the city's administration of justice fund after January 1, 2000, the municipality shall not be required to reimburse the city's administration of justice fund for those transfers. (iv) If a transfer from the general fund is made to the city's administration of justice fund after payment from the city's administration of justice fund for the service credit transfers and before the effective date of this subdivision (a)(5), the municipality is entitled to reimburse the general fund from the city's administration of justice fund for the amount of the transfers. (b)(1) Any municipality which has as of March 28, 1981, taken its first vote to withdraw from participation shall be eligible to withdraw under the provisions of this section if the final vote to withdraw is certified to the board before July 1, 1981. (2) The effective date of withdrawal must be before January 1, 1982. (c)(1) When the water and sewer department of a municipal participating public employer in a city of the first class becomes leased from the municipality and operated by a nonprofit corporation, the mayor shall notify the board in writing within ten (10) days after the utility ceases to be operated by the municipality and may request a refund of the employer contributions paid to the system by the municipality on behalf of the utility employees during their period of employment with the utility. (2) As soon as practicable after notification and request, the board shall arrange for a determination by its actuary or investment counselor of the lump sum present value of future system benefits for retirants, beneficiaries, and inactive members entitled to a deferred annuity from the employment with the utility while it was operated by the municipality. (3) The refund requested shall be subject to the following: (A)(i) If the present value is more than the present system assets arising from the municipality's applicable contributions, then the difference determined by the system's actuary shall be paid to the system by the municipality, either in a single sum or in a series of actuarially equivalent payments over a period not to exceed ten (10) years. (ii) The payment method shall be elected by the municipality from reasonable optional payment methods to be offered by the board; (B) If the present value is less than the present system assets arising from the municipality's applicable contributions, then the difference determined by the system's actuary shall be paid by the system to the municipality, either in a single sum or in a series of actuarially equivalent payments over a period not to exceed ten (10) years as the board shall determine; (C) The board shall withhold twenty percent (20%) from the municipality's applicable employer contributions and shall maintain that amount in the employer accumulation account for noncontributory utility employees who may reenter the system and have their forfeited utility service restored to their credit; and (D) From and after the date the utility ceased to be operated by the municipality: (i) The system shall have no further obligation for payment of benefits for the municipality's employees, which benefits would be based on service with the utility, except for any refund of contributions due a former member from the members' deposit account; and (ii) The system shall retain the obligation for payment of benefits for the retirant and beneficiaries and inactive members entitled to a deferred annuity from employment with the utility while it was operated by the municipality, except that the retained obligation shall be reduced by any payment overdue or not paid to the system by the municipality for service of its utility employees before the municipality ceased operating the utility.

Ark. Code Ann. § 24-4-304 Credited service — Cessation of employment — Reemployment.

(a)(1)(A) When a member is no longer employed in a position covered by the Arkansas Public Employees' Retirement System, he or she shall thereupon cease to be a member. (B) Except as otherwise provided in this chapter, upon termination of his or her membership, a member's credited service is forfeited. (2) If the person is not a retirant and becomes reemployed in a position covered by the system, the person shall become a member of the system, and the person's credited service which did not require member contributions and then was forfeited by him or her at termination of covered employment shall be restored to his or her credit. (b)(1) Upon a member's retirement, he or she shall cease to be a member. (2) Except as provided otherwise in this chapter, he or she shall not again become a member. (c) Should a former member entitled to a deferred annuity provided for in § 24-4-510 become employed in a position covered by the system before becoming a retirant, the member shall thereupon cease to be entitled to a deferred annuity and shall become a member with his or her last credited service reinstated.

Ark. Code Ann. § 24-4-401 Contributions of members.

(a)(1) The members' deposit account shall be the account in which members' contributions shall be accumulated with interest as stipulated by § 24-4-209(a) and from which shall be made transfers and refunds of contributions or accumulated contributions as provided in this act. (2) Upon the retirement of a member, his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred to the retirement reserve account. (b)(1)(A) Until July 1, 2005, the contributions of a contributory member shall be six percent (6%) of the member's annual compensation. (B)(i) Beginning July 1, 2005, the contribution rate shall be five percent (5%) of the member's annual compensation for a contributory member. (ii) A person first hired on or after July 1, 2005, is subject to the provisions of § 24-4-1101 et seq. (C) The member's deposit account shall be credited interest at a rate of four percent (4%) per annum beginning July 1, 2005. (D)(i) Beginning July 1, 2022, and continuing each following fiscal year, the contribution rate shall be increased in increments of twenty-five hundredths of one percent (0.25%) per fiscal year. (ii) An increase to the contribution rate under subdivision (b)(1)(D)(i) of this section shall not result in a contribution rate greater than seven percent (7%). (2) The officer responsible for making up the payroll for each public employer shall cause the contributions provided for in this section to be deducted from the compensation of each member in the employ of a public employer. (3) The contributions shall be deducted on every payroll, for every payroll period, from the date of the member's entrance into the Arkansas Public Employees' Retirement System to the date his or her membership terminates. (4) When deducted, each of the amounts shall be paid by the public employer to the Arkansas Public Employees' Retirement System Fund and shall be credited to the individual account in the members' deposit account of the member from whose compensation the contributions were deducted. (5) The contributions provided for in this section shall be made notwithstanding that the minimum salary or wages for any member shall be thereby changed. (6) Each member shall be deemed to consent and agree to the deductions made and provided for in this section. (7) Payment of a member's compensation less deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for services rendered to a public employer by the member, except as to benefits provided by this act. (c)(1) The official designated by the board of each participating public employer shall remit to the board the contributions deducted from the compensations of members in the employ of the employer. (2) The remittances shall be made in such manner and form, shall be made in such frequency, and shall from time to time be accompanied by such supporting data as the board shall prescribe. (d) It is expressly guaranteed that all members' contributions shall be held in trust for the exclusive benefit of the individual members and that no part of the funds shall ever be used for any other purpose.

Ark. Code Ann. § 24-4-402 Contributions of state and local government division employers — Accounts of retirement system.

(a)(1) The employers' accumulation account shall be the account in which shall be accumulated the contributions made by public employers to the Arkansas Public Employees' Retirement System. (2) Upon the retirement of a member, the difference between the member's annuity reserve and his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred from the employers' accumulation account to the retirement reserve account. (b)(1) The state employer contributions shall be a set percentage rate of the compensations of state employees who are active members as well as those retired members who have returned to work under § 24-4-520. The rate of percentage shall be set by the Board of Trustees of the Arkansas Public Employees' Retirement System as provided for by § 24-2-701. (2) The state's contributions, when paid into the Arkansas Public Employees' Retirement System Fund, shall be credited to the employers' accumulation account. (c)(1) The employer contributions to be paid by each participating public employer, other than the state, shall be a set percentage rate of the compensations of its employees who are active members as well as those retired members who have returned to work under § 24-4-520. The rate of percentage shall be set by the board as provided for by § 24-2-701. (2) The participating public employers' contributions, when paid into the fund, shall be credited to the employers' accumulation account. (d)(1) The retirement reserve account shall be the account from which all annuities shall be paid as provided for in this act. (2) If a disability retirant returns to the employ of a public employer, the retirant's annuity reserve at that time shall be transferred from the retirement reserve account to the members' deposit account and the employers' accumulation account in the same proportion as the annuity reserve was originally transferred to the retirement reserve account. (e)(1) The income account shall be the account to which shall be credited all interest, dividends, and other income from investments of the system, all gifts and bequests received by the system, and all other moneys, the disposition of which is not specifically provided for in this act. (2) There shall be paid or transferred from the income account all amounts required to credit regular interest to the various divisions of the members' deposit account, employers' accumulation account, and the retirement reserve account, as provided in this act. (3) Whenever the board determines that the balance in the income account is more than sufficient to cover current charges to the account, the excess may be transferred by the board to any of the other accounts of the system to cover special needs of the accounts.

Ark. Code Ann. § 24-4-501 Prior service credit generally — Straight life annuity.

(a)(1) Any member of the Arkansas Public Employees' Retirement System who became a member of the system on July 1, 1957, in the case of a state employee, or who became a member of the system on July 1, 1959, in the case of a county employee, and who was continuously employed by a public employer to June 8, 1961, upon application and submission of proper proof to the Board of Trustees of the Arkansas Public Employees' Retirement System, as authorized by this chapter, may receive prior service credit for any service rendered a public employer, as defined in § 24-4-101, in the State of Arkansas in a position covered by some other existing retirement system of this state authorized by law, other than Social Security. (2) Prior service credit may be received only if the member does not have standing to his or her credit in the other retirement system for the same period of time and is no longer a member of, or eligible for membership in, or receiving benefits from, the other retirement system or systems. (b) Any active member of the Arkansas Public Employees' Retirement System who would otherwise be eligible for free prior service credit under the provisions of this chapter because of employment with a public employer or with the public schools but who was drafted and was serving in the United States Armed Forces on active duty on a date which would have made the member eligible for the free prior service had the member been an employee on that date shall receive, upon application and submission of proper proof to the board, free prior service credit for employment prior to July 1, 1957, in the case of a state, municipal, or school employee, or prior to July 1, 1959, in the case of a county employee, if the following conditions are met: (1) The member was an employee of a public employer immediately preceding his or her involuntary service in the United States Armed Forces; and (2) The member was reemployed as an employee within six (6) months of his or her discharge from the United States Armed Forces. (c) For the purposes of this subsection, prior service credit eligibility dates are: (1) July 1, 1957, for state employees; (2) July 1, 1959, for county employees; (3) October 1, 1957, and October 1, 1965, for school employees; (4) July 1, 1957, and January 1, 1963, for colleges and universities; or (5) The date the employer begins participation in the Arkansas Public Employees' Retirement System, for municipalities. (d) As used in this section, "United States Armed Forces" means: (1) Any regular or reserve component of the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Space Force, or United States Coast Guard; and (2) The National Guard of any state.

Ark. Code Ann. § 24-4-508 Eligibility for benefits — Retirement generally.

(a) Any member may voluntarily retire upon his or her written application filed with the Board of Trustees of the Arkansas Public Employees' Retirement System setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing of the application, that he or she desires to be retired if that member has: (1) Twenty-eight (28) or more years of credited service regardless of age; (2) Attained or attains age sixty (60) and has twenty (20) or more years of actual contributory service commenced prior to January 1, 1978; or (3) Attained or attains age sixty-five (65) and has five (5) or more years of actual service, except for a member of the General Assembly who must have ten (10) or more years of actual service if he or she only has service as a member of the General Assembly. (b)(1) Total credited service to qualify for a benefit may be service with the Arkansas Public Employees' Retirement System and service with the University of Arkansas System, which service is covered by the retirement system recognized by the University of Arkansas. (2) The benefit payable by the Arkansas Public Employees' Retirement System shall be based on credited service in the system and on the final average compensation in the system. However, should a member have less than four (4) years of credited service in the system, “final average compensation” means the monthly average of pays to the member during his or her total years of service in the system. (c)(1) An annuity determination shall be made promptly by the Arkansas Public Employees' Retirement System upon a member's filing a written application for retirement in accordance with subsection (a) of this section. (2) The determination shall include the member's total years of credited service, the specific factors used to make the determination, the base annuity payable to the member, and the amount of annuity payments, if any, payable under the annuity options of § 24-4-606. (3) If the member is not eligible for a retirement annuity, the determination shall state the reasons for the determination. (d) A member's retirement election is irrevocable except under circumstances as may be permitted by the board by rule.

Ark. Code Ann. § 24-4-510 Eligibility for benefits — Deferred and early annuities.

(a)(1)(A) Any member or former member with sufficient years of actual service to qualify for a vested termination annuity who has not attained his or her normal retirement age may retire with an early annuity provided for in subsection (b) of this section upon his or her written application to the plan setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing of his or her application, he or she desires to be retired. (B) The member or former member eligible for a vested termination annuity must have at least five (5) years of actual service and be within ten (10) years of normal retirement age, except for members of the General Assembly who must have at least ten (10) years of actual service and be within ten (10) years of normal retirement age. (2)(A) Upon early retirement, a member shall receive a certain percentage of an annuity for life provided for in § 24-4-601. The percentage shall be one hundred percent (100%) reduced by one-half of one percent (0.5%) multiplied by the number of months by which the member's age at early retirement is younger than his or her normal retirement age, using what his or her normal retirement age would have been under the provisions of § 24-4-508 if he or she had continued covered employment from the time of early retirement. (B)(i) However, if the member or former member has at least twenty-five (25) years of actual service but less than twenty-eight (28) years of actual service and has not reached age sixty-five (65), then upon early retirement the member shall receive a percentage of a life annuity as provided in § 24-4-601. The percentage shall be one hundred percent (100%) reduced by one percent (1%) multiplied by the number of months by which the time of early retirement precedes the earlier of either the completion of twenty-eight (28) years of actual service or the attainment of age sixty-five (65). (ii) If the reduction set forth under this subdivision (a)(2)(B) is greater than the reduction that would have otherwise been imposed except for this subdivision (a)(2)(B), then the lesser reduction shall apply. (3) The early annuity shall be effective the first day of the calendar month next following the later of termination of public employer employment or thirty (30) days after receipt by the Board of Trustees of the Arkansas Public Employees' Retirement System of the written application. (b)(1) A member who terminates covered employment before attaining his or her normal retirement age for a reason other than death or early retirement or disability retirement shall be entitled to an annuity computed in accordance with the provisions of subdivision (b)(2) of this section as it provides at time of last termination of employment, subject to the member's satisfying all of the following conditions: (A) Except for members of the General Assembly, who must have at least ten (10) years of actual service, the member has five (5) or more years of total actual service with the Arkansas Public Employees' Retirement System or in combination with reciprocal systems under the provisions of §§ 24-2-401 — 24-2-405, and 24-2-407. In establishing the minimum total credited service, periods of credited service covering the same calendar time shall be counted only one (1) time. However, both service in the Arkansas Public Employees' Retirement System as a member of the General Assembly and service in another reciprocal system during the same period of time may be counted to meet the service requirements for benefits from the reciprocal systems, subject to the following: (i) The provisions of § 24-4-521 may not be used to meet the service requirements; and (ii) The benefit payable by a reciprocal system will be based on the credited service in that system and on the final average compensation under that system; (B) If a member has fewer years of service than the final average compensation requirement in a reciprocal system, then “final average compensation” means the monthly average of pay to the member during his or her total years of service in that system; (C) The member lives to his or her annuity starting date; and (D) The member makes written application for retirement in accordance with this section. (2)(A) A contributory member with twenty (20) or more years of actual service who left or leaves the employ of a public employer prior to the member's attainment of age sixty (60) for any reason except his or her retirement or death shall be entitled to an annuity provided for in § 24-4-601, but only if the member does not withdraw his or her accumulated contributions from the members' deposit account. (B) The member's annuity shall begin the first day of the calendar month next following the month after his or her attainment of age sixty (60) upon written application filed with the Board of Trustees of the Arkansas Public Employees' Retirement System setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing of the application, the member desires to be retired. (3)(A) A contributory member who has at least five (5) years but less than twenty (20) years of actual service who leaves the employ of a public employer prior to his or her attainment of age sixty-five (65) for any reason except his or her retirement or death and who does not withdraw his or her accumulated contributions from the members' deposit account shall be entitled to an annuity provided for in § 24-4-606. (B) A noncontributory member who has at least five (5) years but less than twenty-eight (28) years of actual service who leaves the employ of a public employer prior to the attainment of age sixty-five (65) for any reason except retirement or death shall be entitled to an annuity provided for in § 24-4-606. (C) The member's annuity shall begin the first day of the calendar month next following the month of attainment of age sixty-five (65) upon written application filed with the board setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing thereof, the member desired to be retired. (4) The monthly amount of vested termination annuity shall be computed in the same manner as a normal annuity amount provided for in § 24-4-601, but it shall be based upon the member's credited service and final average compensation at the time of termination of employment covered by the Arkansas Public Employees' Retirement System. (5) The member shall have the right to elect an option provided for in § 24-4-606.

Ark. Code Ann. § 24-4-511 Eligibility for benefits — Disability retirement — Definitions.

(a)(1)(A)(i) Except for members of the General Assembly who need at least ten (10) years of actual service, any active member with five (5) or more years of actual service, including actual service for at least eighteen (18) of the twenty-four (24) calendar months immediately preceding his or her disability, who becomes totally and permanently physically or mentally incapacitated for any suitable job or position as an employee as a result of a personal injury or disease may be retired by the Board of Trustees of the Arkansas Public Employees' Retirement System upon written application filed with the board by or on behalf of the member. (ii)(a) As used in subdivision (a)(1)(A)(i) of this section, “disease” includes without limitation cancer that a firefighter or volunteer firefighter is diagnosed with while he or she is in the line of duty. (b) A finding that a firefighter or volunteer firefighter was diagnosed with cancer while he or she was in the line of duty may be rebutted by a preponderance of the evidence. (iii) As used in subdivision (a)(1)(A)(ii) of this section, “cancer” means: (a) Leukemia, lymphoma, mesothelioma, or multiple myeloma; (b) Cancer of the brain, urinary tract, liver, skin, breast, cervix, thyroid, prostate, testicle, colon, or digestive tract; or (c) A cancer that has been found by research and statistics to show higher instances of occurrence in firefighters than in the general population, if the firefighter was exposed to a known carcinogen, as determined by the Department of Health with consideration to the findings of the International Agency for Research on Cancer, while in the official line of duty. (B) This may occur only if after a medical examination of the member made by or under the direction of a physician or physicians designated by the board, the physician reports to the board in writing that the member is physically or mentally totally incapacitated for any suitable job or position, that the incapacity will probably be permanent, and that the member should be retired. (2) Upon filing the proper application and meeting the requirements stated in this section, the disability annuity shall be effective the first day of the calendar month following the Arkansas Public Employees' Retirement System's approval of the disability application. (b)(1) Upon disability retirement as provided in subsection (a) of this section, a member shall receive an annuity provided for in § 24-4-601, and his or her disability retirement and annuity shall be subject to the provisions of subsections (c) and (d) of this section. (2) When a person retired on disability under this chapter reaches the age required for full age and service retirement benefits, the person's retirement status shall be changed from that of disability to superannuation. (3)(A)(i) A person who receives or who is receiving a benefit solely because of disability but who meets or has met the elected credited service and total credited service requirement but not the age requirement for a benefit provided for a member with elected service, upon attaining the required age, may have his or her disability retirement status changed to superannuation. (ii) The person's benefit shall be the age and service amount provided by his or her credited service in effect before termination of employment because of disability. (B) The change must be made by formal request of the retirant to the board on a form to be furnished by the Arkansas Public Employees' Retirement System and filed with the system setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing thereof, he or she desires the change to be effective. (C) In no event shall the change be effective earlier than the first of the month following attainment of the age required for the age and service benefit provided by his or her amount of credited service, and, after the effective date, he or she shall be eligible to return to employment subject to the provisions of § 24-4-520. (c)(1) At least one (1) time each year during the first five (5) years following a member's retirement on account of disability and at least one (1) time in each three-year period thereafter, the board may require any disability retirant who has not attained the normal retirement age for full age and service retirement benefits to undergo a medical examination to be made by or under the direction of a physician or physicians designated by the board. (2) If a retirant refuses to submit to a medical examination in any period, his or her disability annuity may be suspended by the board until his or her withdrawal of the refusal. (3) If the refusal continues for one (1) year, all of the retirant's rights in and to a disability annuity may be revoked by the board. (4) If, upon the medical examination of the retirant, the physician reports to the board that the retirant is physically and mentally able and capable for a suitable job or position as an employee, his or her disability retirement shall terminate. (5) If a disability retirant secures employment with an employer not considered a public employer, as defined in § 24-4-101, for the purpose of determining whether he or she is capable of returning to employment, then the disability retirant shall be allowed to earn compensation from the employment for a period of time not to exceed nine (9) months, during which period of time the retirant shall receive no monthly benefits from the system. (6) If the retirant becomes unable to continue his or her employment before the nine-month period expires, then the retirant's disability retirement benefits from the system shall be reinstated and shall be effective the first day of the month after terminating his or her employment. (7) Only one (1) trial work period is allowed any disability retirant, but the nine (9) months need not be consecutive. (8) The trial work period does not prevent the consideration of any medical evidence which may demonstrate recovery before the ninth month of trial work. (d)(1) If at the end of the nine-month trial work period the retirant wishes to continue his or her employment outside the system, then the retirant's disability retirement status shall terminate. For the purpose of determining his or her eligibility for any other benefit, the retirant shall be considered to have terminated active membership as of the time of disability retirement but for a reason other than disability or death. (2) If the former disability retirant again becomes an employee of a public employer, as defined in § 24-4-101, the retirant shall immediately again become a member of the system, his or her credited service at the time of his or her disability retirement shall be restored to the retirant's credit, and the amount of his or her accumulated contributions at the time of his or her disability retirement shall be restored to his or her credit in the members' deposit account. (3) In no event shall the retirant be given service credit for the period he or she was in receipt of the disability annuity. (4) Should the former disability retirant again become totally and permanently disabled within twenty-four (24) months immediately following his or her return to membership or should the retirant qualify for benefits by reason of age and service, the eighteen (18) months' credited service requirement specified in this section shall be waived. (e)(1) As used in this section, “suitable job or position” means a job or position, the requirements of which can be physically or mentally performed, as determined by a physician, and for which the remuneration would be substantially gainful. (2) In case of doubt as to what would be substantially gainful, the board shall have the final power to decide the question. (3) Any former member who is or was approved for disability by the Social Security Administration but whose onset date does not meet the provision of subdivision (a)(1)(A) of this section that requires credited service for eighteen (18) of the twenty-four (24) months immediately preceding the disability, may be retired by the board upon written application to the board subject to the following: (A) The onset date determined by the Social Security Administration is within twenty-four (24) months of the date of termination from covered employment; (B) The former member furnishes a written statement to the board from a physician approved by the board that the former member was suffering at the time of termination from an illness or injury that subsequently led to the disability determination; and (C) Retirement payments authorized under this section shall be effective on the first day of the next month following approval by the board of the written application and shall not be retroactive.

Ark. Code Ann. § 24-4-512 Eligibility for benefits — Prior service credit for county members.

Any member of the County Division of the Arkansas Public Employees' Retirement System may, upon application and submission of proper proof to the Board of Trustees of the Arkansas Public Employees' Retirement System, receive credit for any service rendered a public employer, as defined in § 24-4-101 , prior to July 1, 1959, subject to the following conditions: (1) That he or she was employed by a county participating public employer on July 1, 1957; and (2) That he or she was employed by a state department participating public employer on July 1, 1959.

Ark. Code Ann. § 24-4-514 Credit for educational leave.

(a) As used in this section: (1) “Educational leave” means a leave of absence from employment in a position covered by the Arkansas Public Employees' Retirement System to pursue a degree from an institution of higher education; and (2) “System” means the Arkansas Public Employees' Retirement System. (b) On or after July 1, 1987, any person who is a member of the system and who is not receiving benefits under the system on July 1, 1987, shall be entitled to purchase credited service in the system for a period not to exceed twelve (12) months for actual time spent on educational leave, provided that the person: (1) Has ten (10) or more years of actual service with the system; (2) Was paid a stipend during the period of educational leave; (3) Had creditable service before and for at least two (2) years after the period of educational leave; and (4) Pays or causes to be paid the sum of all employee contributions at the rate and on the compensation that would have been paid had he or she been a member of the system during that period of time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date of the educational leave to the date the payment is received by the system.

Ark. Code Ann. § 24-4-516 Credit for lost credited service due to work-related injury.

(a) Any member of the Arkansas Public Employees' Retirement System who suffers from or who has suffered in the past from a work-related injury for which workers' compensation benefits were paid under the workers' compensation laws, and whose annuity from the system would otherwise be reduced due to the reduced salary and lost credited service, shall be entitled to obtain credited service for the actual time period of reduced salary and lost service credit by paying to the system all employee contributions at the rate and on the compensation that would have been paid had he or she been a member of the system during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service would have been rendered to the date the payment is received by the system. (b) Provided, however, at the discretion of the employer, any employer under the system may elect to implement a policy to pay the employer's portion of any contributions that an employee would otherwise be responsible to pay under this section to receive the service credit.

Ark. Code Ann. § 24-4-517 State service under a federal grant — Definition.

(a) As used in this section, “state service under a federal grant” means service rendered to any state agency while detailed or assigned to the agency under the terms of a federal grant agreement between an agency of the federal government and a state agency to perform services for the state agency and to be under the supervision of state administrators while being paid from federal grant funds awarded to the state agency and withheld from the federal grant moneys. (b) From and after January 1, 1995, any person who is or was a member of the Arkansas Public Employees' Retirement System shall be entitled to purchase credited service in the system for a period not to exceed three (3) years for state service under a federal grant, but only if the person: (1) Has at least ten (10) years of actual service with the system; (2) Is not receiving or was not eligible to receive any retirement benefits paid by another retirement system for the period of time for which he or she is claiming state service under a federal grant, except for Social Security benefits, if the person had left on deposit the contributions to the other system; (3)(A) Pays or causes to be paid all employee contributions at the rate and on the compensation that would have been paid had he or she been a member of the system during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date payment is received by the system. (B) The member may purchase all of the service or any portion thereof in multiples of one (1) year. (C) The payment of funds shall be made in one (1) lump sum; and (4) Has otherwise complied with all other rules as the Board of Trustees of the Arkansas Public Employees' Retirement System may from time to time adopt under this section.

Ark. Code Ann. § 24-4-518 Credit for service as sheriff.

A sheriff or former sheriff who became a member of the Arkansas Public Employees' Retirement System pursuant to Acts 1995, No. 846, § 1, may purchase his or her time as an elected sheriff prior to July 28, 1995. At his or her option, the sheriff or former sheriff may receive credit for the service, subject to the following conditions: (1) The person is a participating employee covered under the system at the time of the purchase or was a sheriff who became a member pursuant to Acts 1995, No. 846, § 1; (2) The person furnishes proof in a form required by the system of the service and compensation received; (3) The person pays or causes to be paid: (A) All employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time; (B) All employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time; and (C) Regular interest on the employee and employer contributions. The interest shall be computed from the date the service was rendered to the date the payment is received by the system. The person may purchase all of the service or any portion thereof in multiples of one (1) year; and (4) The payment of funds shall be made in one (1) lump sum.

Ark. Code Ann. § 24-4-519 Current service credit — Nonuniformed employees.

(a)(1)(A) A person who on December 31, 1998, was a nonuniformed employee of a municipality that participates in the Arkansas Public Employees' Retirement System or a former nonuniformed employee of a municipality that participates in the Arkansas Public Employees' Retirement System who was an active member of the system on December 31, 1998, may waive all rights to receive benefits under § 24-12-101 et seq. and apply for and receive current service credit in the Arkansas Public Employees' Retirement System for service rendered as a paid nonuniformed employee of the municipality. (B) A former nonuniformed employee of a municipality or municipalities who had at least six (6) years of service as a nonuniformed employee, ten (10) years of service as a member of the Arkansas Public Employees' Retirement System or a reciprocal system as defined by § 24-2-401, and is in a position of policy-making authority for a state agency may waive all rights to receive benefits for the service under any retirement plan and apply for and receive current service credit in the Arkansas Public Employees' Retirement System for service rendered as a paid nonuniformed employee of the municipality or municipalities. (C) A former nonuniformed employee whose employment was with a municipality not participating in the Arkansas Public Employees' Retirement System, whose employment accrued before January 1, 1970, and who was an active member of the Arkansas Public Employees' Retirement System or a reciprocal system as defined by § 24-2-401 on December 31, 1998, may waive all rights to receive benefits under § 24-12-101 et seq., and apply for and receive current service credit in the Arkansas Public Employees' Retirement System for service rendered as a paid nonuniformed employee of the municipality. (2) The waiver must be filed with the Arkansas Public Employees' Retirement System and with the governing body of the municipality. (b) The current or former paid nonuniformed employee shall receive credit only if the employee or the municipality pays or causes to be paid to the Arkansas Public Employees' Retirement System Fund: (1) All necessary employee contributions at the rate and on the compensation that would have been paid had the employee been a member during that time; (2) All employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time; and (3) Regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the Arkansas Public Employees' Retirement System. (c) The employer's contributions and employees' contributions, if applicable, shall be transmitted to the Arkansas Public Employees' Retirement System in the form and manner, together with the supporting data, as the Board of Trustees of the Arkansas Public Employees' Retirement System shall prescribe from time to time. (d) The governing body of the municipality may pay the employer contributions and employee contributions, if applicable, on behalf of the employee for services rendered. (e) “Paid nonuniformed employees” has the same meaning as provided by § 24-12-101.

Ark. Code Ann. § 24-4-520 Termination required for retirement.

(a) Except as provided in subsection (c) of this section, a member of the Arkansas Public Employees' Retirement System shall terminate covered employment to be eligible for retirement. (b)(1) A member shall not be terminated from employment for retirement purposes if the person: (A)(i) Returns to employment in a position covered under the system within one hundred eighty (180) days of the person's effective date of retirement. (ii)(a) Subdivision (b)(1)(A)(i) of this section does not apply to a member of the system who returns to temporary employment with the House of Representatives, the Senate, the Bureau of Legislative Research, Arkansas Legislative Audit, or the Arkansas Code Revision Commission during a regular session, fiscal session, or special session in a session-only position requiring specialized institutional knowledge and experience; or (b) An essential seasonal staff member as defined under § 24-4-804(c)(2)(B); or (B) Is a member with service credit under § 24-4-521 at a rate of two (2) or more years of credited service for each year of actual service and the person returns to employment in a position covered under the system within one (1) year of the person's effective date of retirement. (2) A member participating in the Arkansas Public Employees’ Retirement System Deferred Retirement Option Plan on January 1, 2009, shall have the one-hundred-eighty-day separation requirement waived and may return to employment otherwise covered by the system no sooner than thirty (30) calendar days from the commencement of his or her retirement. (3) A member who has retired and commenced receiving benefits in any month between January 2009 and June 2009, inclusive, shall have the one-hundred-eighty-day separation requirement waived and may return to employment otherwise covered by the system no sooner than thirty (30) calendar days from the commencement of his or her retirement. (c)(1) An elected public official may retire and begin receiving retirement benefits if the elected public official is a member: (A) Whose current service in public office in one (1) form of government is covered by § 24-4-521(b)(5); and (B) Who is elected to public office in a different form of government and will begin serving in that public office immediately after the expiration of his or her term of public office described in subdivision (c)(1)(A) of this section. (2) The member shall notify the retirement system of his or her impending service in another form of government at least thirty (30) days prior to the first day of the month in which that service will begin. A completed retirement application shall be submitted at that time. (3) As used in this subsection, “form of government” means city government, county government, or state government. (d)(1) A member or former member in the system who fails to meet termination requirements shall forfeit their benefits until requirements are met. (2) A retirant shall not begin receiving annuity payments until all requirements for terminating qualified employment are satisfied. (3) The failure to meet termination requirements does not revoke a member's retirement election. (e)(1) As used in this section, “terminate” means: (A) The member's employment has ended; (B) A complete severance of the employer-employee relationship has occurred; and (C) The member has ceased performing any services for the employer, except for noncompensated functions related to the transfer of the duties or the transfer of the position itself. (2) If the member is an elected public official, “terminate” as used in this section means: (A) The member has resigned, been removed, or otherwise no longer holds the elected position; (B) A complete severance from the elected position has occurred; and (C) The member has ceased performing any services in his or her elected position, except for noncompensated functions related to the transfer of the duties or the transfer of the position itself. (3) As used in this section, “terminate” does not mean: (A) Taking a leave of absence; (B) Performing job duties or services without remuneration; or (C) Receiving or accruing additional employment-related compensation, reimbursements, benefits, or other emoluments.

Ark. Code Ann. § 24-4-521 Credited service generally — Definition.

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System shall establish the amounts of service to be credited its members subject to the provisions of subsection (b) of this section. (b)(1)(A)(i) Noncontributory employment service by a person who was: (a) Employed prior to July 1, 1997, as a public safety member shall be credited at one and one-half (1½) times the regular rate for crediting service; and (b) Employed on and after July 1, 1997, shall be credited at the regular rate for crediting service. (ii) A person receiving credit for service under subdivision (b)(1)(A)(i)(a) or subdivision (b)(1)(A)(i)(b) of this section shall be required to have five (5) years of actual service to meet the: (a) Retirement eligibility requirements under §§ 24-4-510 — 24-4-512 and 24-4-601; and (b) Eligibility requirements for death benefits under § 24-4-608. (B)(i) Noncontributory or contributory employment service by a person who qualifies as a public safety member under § 24-4-1004 shall be credited at one and one-half (1½) times the regular rate for crediting service. (ii) A person receiving credit for service under subdivision (b)(1)(B)(i) of this section shall be required to have five (5) years of actual service to meet the: (a) Retirement eligibility requirements under §§ 24-4-510 — 24-4-512, 24-4-601, and 24-4-1103; and (b) Eligibility requirements for death benefits under §§ 24-4-608 and 24-4-1108. (2)(A)(i) Noncontributory employment as the Governor by a person first elected to a public office covered by the Arkansas Public Employees' Retirement System prior to July 1, 1999, shall be credited as service at three (3) times the regular rate for credited service. (ii) Noncontributory or contributory employment as the Governor by a person first elected to a public office covered by the system on or after July 1, 1999, shall be credited at the regular rate for crediting service. (B) A person receiving credit for service under subdivision (b)(2)(A)(i) or subdivision (b)(2)(A)(ii) of this section shall be required to have: (i) Four (4) years of actual service to meet the retirement eligibility requirements under §§ 24-4-510 — 24-4-512, 24-4-601, and 24-4-1103; and (ii) Five (5) years of actual service to meet the eligibility requirements for death benefits under §§ 24-4-608 and 24-4-1108. (3)(A)(i) Noncontributory employment as an elected state constitutional officer by a person first elected to a public office covered by the system prior to July 1, 1999, shall be credited at two and one-half (2½) times the regular rate for crediting service. (ii) Noncontributory or contributory employment as an elected state constitutional officer by a person first elected to a public office covered by the system on or after July 1, 1999, shall be credited at the regular rate for crediting service. (B) A person receiving credit for service under subdivision (b)(3)(A)(i) or subdivision (b)(3)(A)(ii) of this section shall be required to have five (5) years of actual service to meet the: (i) Retirement eligibility requirements under §§ 24-4-510 — 24-4-512, 24-4-601, and 24-4-1103; and (ii) Eligibility requirements for payment of death benefits under §§ 24-4-608 and 24-4-1108. (4)(A)(i) Noncontributory or contributory employment as a member of the General Assembly shall be credited at the regular rate for crediting service. (ii) A person receiving credit for service under subdivision (b)(4)(A)(i) of this section shall be required to have: (a) Ten (10) years of credited service to meet the retirement eligibility requirements of §§ 24-4-510, 24-4-511, 24-4-601, and 24-4-1103; (b) Five (5) years of actual service to meet the eligibility requirements for the death benefits under §§ 24-4-608 and 24-4-1108; and (c) Five (5) years of actual service to be eligible to purchase military service credit under § 24-2-502. (B) A member of the General Assembly who at any time has served at least six (6) months in the General Assembly shall be credited with no more than one (1) year's actual service. (5)(A) A person who is employed as an elected public official covered by the system and: (i) Who has served in a noncontributory elected position covered by the system before July 1, 2011, shall be credited as service at two (2) times the regular rate for crediting service; (ii) Who has never served in a noncontributory elected position covered by the system before July 1, 2011, shall be credited as service at two (2) times the regular rate for crediting service, and the employee shall contribute an additional two and one-half percent (2.5%) of the gross payroll, and the employer shall contribute an additional two and one-half percent (2.5%) of the gross payroll for the additional service that exceeds the regular rate of service; or (iii) Who has never served in a contributory elected position covered by the system before January 1, 2014, shall be credited as service at two (2) times the regular rate for crediting service, and the employee shall contribute an additional two and one-half percent (2.5%) of the gross payroll, and the employer shall contribute an additional two and one-half percent (2.5%) of the gross payroll for the additional service that exceeds the regular rate of service. (B) However, at least five (5) years of actual service shall be required to meet: (i) The retirement eligibility requirements of §§ 24-4-510 — 24-4-512, 24-4-601, and 24-4-1103; and (ii) The eligibility requirements for death benefits under §§ 24-4-608 and 24-4-1108. (C) This subdivision (b)(5) does not apply to: (i) The Governor; (ii) An elected state constitutional officer; (iii) A member of the General Assembly; or (iv) An elected public official under the State Division of the Arkansas Public Employees' Retirement System. (6)(A)(i) Noncontributory employment as an elected public official under the State Division of the Arkansas Public Employees' Retirement System other than the Governor, an elected state constitutional officer, or a member of the General Assembly by a person first elected to a public office covered by the Arkansas Public Employees' Retirement System prior to July 1, 1999, shall be credited as service at two (2) times the regular rate for crediting service. (ii) A person receiving credit for service under subdivision (b)(6)(A)(i) of this section shall have five (5) years of actual service to meet the: (a) Retirement eligibility requirements under §§ 24-4-510 — 24-4-512, 24-4-601, and 24-4-1103; and (b) Eligibility requirements for death benefits under §§ 24-4-608 and 24-4-1108. (B) Noncontributory or contributory employment as an elected public official under the State Division of the Arkansas Public Employees' Retirement System other than the Governor, an elected state constitutional officer, or a member of the General Assembly by a person first elected to a public office covered by the system on or after July 1, 1999, shall be credited at the regular rate for crediting service. (c) As used in this section, “elected state constitutional officer” means the Lieutenant Governor, Attorney General, Secretary of State, Auditor of State, Treasurer of State, and Commissioner of State Lands.

Ark. Code Ann. § 24-4-522 Applicability of benefit provisions.

(a) The benefit provisions of this chapter shall be applicable to specified members of the Arkansas Public Employees' Retirement System. (b)(1) The noncontributory benefit provisions of this chapter shall be applicable to each person who has never been a member of the Arkansas Public Employees' Retirement System before January 1, 1978, and who is employed on or after January 1, 1978, in a position covered by the system and who thereby becomes a member. (2) In addition, each other member who was actively employed in a position covered by the Arkansas Public Employees' Retirement System on June 30, 1991, may elect to become covered by the noncontributory benefit provisions of this chapter by application written to, and received by, the governing body of the plan before January 1, 1985. (3)(A)(i) Each other member who was not actively employed in a position covered by the Arkansas Public Employees' Retirement System on January 1, 1978, shall become covered by the noncontributory benefit provisions of this chapter at the time the member first becomes so employed after January 1, 1978, unless he or she elects to become covered by the provisions of the Arkansas Public Employees' Retirement System which require member contributions, by election written to, and received by, the governing body of the system before the later of January 1, 1986, and six (6) months after the member first becomes so employed after January 1, 1978. (ii) However, if the member so elects benefits requiring member contributions, he or she shall pay the member contributions from the date of the employment, together with regular interest, from the dates the contributions would normally have been received by the Arkansas Public Employees' Retirement System to the dates of actual payment. (B)(i) The benefits of each member's becoming covered by the noncontributory benefit provisions of this chapter shall be computed by applying the benefit provisions prescribed by this chapter for all credited service of the person rendered before and after January 1, 1978. (ii) However, benefit amounts based upon employment before January 1, 1978, shall not be less than benefit amounts computed in accordance with the Arkansas Public Employees' Retirement System benefit provisions at the time of retirement which require member contributions. (c)(1) The noncontributory benefit provisions of this chapter, including death and disability benefits, shall apply to all credited service rendered before or after the date of election of employees of the Department of Human Services in either the Arkansas Teacher Retirement System or the Arkansas Public Employees' Retirement System. (2)(A) Employees of the Department of Human Services and employees of Arkansas Rehabilitation Services shall be entitled to the benefit amount computed by applying the benefit provisions prescribed by this chapter for all credited service rendered before and after January 1, 1978, except that benefit amounts based upon employment before January 1, 1978, shall not be less than benefit amounts computed in accordance with benefit provisions in effect December 31, 1977. (B) On and after January 1, 1993, employees of Arkansas Rehabilitation Services who elected to be covered by the provisions of this subsection and who are still active employees on January 1, 1993, shall be entitled to the benefit amount computed by applying the benefit provisions prescribed by this chapter for all credited service rendered before and after January 1, 1978, except that benefit amounts based upon employment before January 1, 1978, shall be computed in accordance with current benefit provisions in effect for the Arkansas Teacher Retirement System at the time of their retirement. (3) In computing the benefit under the benefit provisions of this chapter, the final average compensation shall be computed upon all service before and after the election of the Arkansas Rehabilitation Services employee as provided in § 24-4-101(33) and § 24-4-746. (d) Each public retirement system in which the employee has served shall be responsible financially for the benefit amounts payable to the retirant, the retirant's survivors, and the retirant's beneficiaries based upon the ratio of the number of years the employee was a member of that public retirement system to the total number of years the employee was a member of any of the two (2) statewide retirement systems, i.e., the Arkansas Public Employees' Retirement System or the Arkansas Teacher Retirement System. (e)(1)(A) The benefit provisions of this chapter shall be administered by the Arkansas Public Employees' Retirement System for the benefit of all employees making the option. (B) The Arkansas Public Employees' Retirement System shall certify monthly the amount of benefits paid hereunder, and the Arkansas Teacher Retirement System shall immediately transfer that amount from its benefit account to the proper account designated by the Arkansas Public Employees' Retirement System. (2) If an employee of the Department of Human Services who becomes or has become a member of the Arkansas Public Employees' Retirement System under the provisions of this section leaves employment with the Department of Human Services and becomes employed in another position covered by the Arkansas Teacher Retirement System, the person's credited service, both before and after his or her service under this chapter, shall be subject to the benefit provisions of §§ 24-7-701, 24-7-702, 24-7-704 — 24-7-713, 24-7-715, and 24-7-716 [repealed]. (3) The member shall be eligible to establish reciprocity under the provisions of §§ 24-2-401 — 24-2-405 and 24-2-407. (4) Members of the Arkansas Teacher Retirement System who have not elected to pay contributions to that system on full salary shall not be eligible to elect to become covered by the benefit provisions of this chapter unless they first make written application with the Arkansas Teacher Retirement System for full salary coverage for all salaries received from July 1, 1969, until the date of making the election to come under the provisions of this chapter and paying to the system the amount of the additional contributions, plus regular interest, for full salary credited service. (f) Any member of the Arkansas Public Employees' Retirement System employed prior to January 1, 1978, who does not elect in writing to become covered by the noncontributory benefit provisions of this chapter shall not be covered by the noncontributory benefit provisions of this chapter but shall remain in the plan he or she was in January 1, 1978, and shall continue to make regular contributions as provided in the Arkansas Public Employees' Retirement System. (g) Any member of the Arkansas Public Employees' Retirement System who elects in writing to become covered by the noncontributory benefit provisions of this chapter shall be entitled to a refund of any accumulated contributions paid on or after January 1, 1978, and prior to the date of election.

Ark. Code Ann. § 24-4-601 Straight life annuity generally.

(a)(1) Beginning July 1, 2001, any member who retires as provided in § 24-4-508 or §§ 24-4-510 — 24-4-512 shall receive a straight life annuity for each year of contributory service credit equal to two and seven-hundredths percent (2.07%) of the member's final average compensation multiplied by the number of years and fraction of a year of credited service rendered on or after July 1, 2001, with the Arkansas Public Employees' Retirement System. (2) Beginning July 1, 2001, any member who retires as provided in § 24-4-508 or §§ 24-4-510 — 24-4-512 shall receive a straight life annuity for each year of contributory service credit equal to two and eleven-hundredths percent (2.11%) of the member's average compensation multiplied by the number of years and fraction of a year of credited service rendered before July 1, 2001, with the system. (b)(1) For each year of noncontributory credited service in the system rendered prior to July 1, 2007, resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, a member shall receive one and seventy-five-hundredths percent (1.75%) of the member's final average compensation plus, for each year of noncontributory credited service in the system rendered prior to July 1, 2007, resulting from employment in a position never so covered, a member shall receive two and eleven-hundredths percent (2.11%) of the member's final average compensation. (2) For each year of credited service in the system rendered after June 30, 2007, resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, a member shall receive one and seventy-two-hundredths percent (1.72%) of the member's final average compensation plus, for each year of credited service in the system rendered after June 30, 2007, resulting from employment in a position never so covered, a member shall receive two and seven-hundredths percent (2.07%) of the member's final average compensation. In no event shall service as a district judge in the state division receive less than three percent (3%) of the member's final average compensation. (3) For each year of actual service in the system in excess of twenty-eight (28) years that is rendered on or after July 1, 2009, a member shall receive a straight life annuity equal to an additional five-tenths of one percent (0.5%) of the member's final average compensation. (c)(1) A member of the General Assembly first elected before July 1, 1999, shall receive a monthly annuity equal to thirty-five dollars ($35.00) multiplied by the number of years of actual service as a member of the General Assembly. (2) A member of the General Assembly first elected before July 1, 1999, who served as Speaker of the House of Representatives or President Pro Tempore of the Senate shall receive a monthly annuity equal to forty dollars ($40.00) multiplied by the total number of years of actual service as a member of the General Assembly. (d)(1) In addition, if a member has credited service resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, and if that member is retiring as provided in subsection (b) of this section or § 24-4-510, and if that member's age at retirement is younger than Social Security's minimum age for an immediate retirement benefit and age sixty-two (62), then that member of the system shall receive a temporary annuity equal to thirty-three-hundredths of one percent (0.33%) of his or her final average compensation for each year of the noncontributory credited service. (2) The temporary annuity shall terminate at the end of the calendar month in which the earliest of the following events occurs: (A) The member's death; (B) The member's attainment of the Social Security minimum age; or (C) The member's attainment of age sixty-two (62). (3) It is considered sound public policy that retirement pay not exceed working pay except for increases after retirement caused by inflation. Accordingly, at the time of retirement the total of the system's noncontributory annuities resulting from employment in a position also covered by Social Security shall not exceed the member's final average compensation. (4) If no temporary annuity is payable as provided in this subsection or after the temporary annuity has terminated and if the member has at retirement any credited service for any period of time prior to July 1, 1991, then the future payments of the annuity for life shall not be less than they would have been under the provisions that were in effect on July 1, 1990, for this subsection, plus a corresponding increase for any benefit enhancements that have been enacted since July 1, 1991.

Ark. Code Ann. § 24-4-602 Payment of annuity balance upon death of retirant or member.

(a) In the event a retirant who is in receipt of a straight life annuity dies before he or she has received in straight life annuity payments an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the members' deposit account at the time of his or her retirement, the difference between his or her accumulated contributions and the aggregate amount of straight life annuity payments received by him or her shall be paid to such persons as he or she shall have nominated by written designation duly executed and filed with the Board of Trustees of the Arkansas Public Employees' Retirement System. (b) If there is no designated person surviving the retirant, the difference, if any, shall be paid in accordance with the Arkansas laws of descent and distribution. (c) The payments may be made directly to a curator or guardian, or to an administrator or an executor, authorized to receive the payments, wherever the representative may be, with or without the appointment of a representative in this state. (d) In the event a member dies and does not leave a beneficiary entitled to an annuity payable from funds of the Arkansas Public Employees' Retirement System, his or her accumulated contributions standing to his or her credit in the members' deposit account as of the time of his or her death shall be paid pursuant to the provisions of this section.

Ark. Code Ann. § 24-4-603 Refund of contributions.

(a) In the event a former member has left the employ of a participating public employer and requests a refund of his or her accumulated contributions, he or she shall be paid the contributions upon his or her written application for a refund on a form to be supplied by the Arkansas Public Employees' Retirement System. (b) The former member may receive interest on the contributions if he or she has had accumulated contributions standing to his or her credit in the members' deposit account for at least five (5) years between the date he or she became a member of the system and the date he or she requests the refund of contributions. (c) The interest shall be paid at a rate and method to be determined by the Board of Trustees of the Arkansas Public Employees' Retirement System and shall be calculated on the balance in the members' deposit account on the last June 30 prior to the date he or she obtains his or her refund. (d) If a former member has applied for a refund of contributions but returns to employment with a participating public employer prior to the date he or she receives his or her refunded contributions, his or her request shall be void and he or she must again terminate his or her employment to request a refund of contributions. (e) Refunds of a member's contributions or accumulated contributions, as the case may be, may be made in equal installments according to such rules as the board may adopt from time to time. (f)(1) If a member receives a refund of contributions from the Arkansas Public Employees' Retirement System upon termination of covered employment and is reemployed by a participating public employer, then the member is considered first hired under this subchapter as of the date of reemployment. (2)(A) Upon reemployment, the member may reestablish forfeited service credit in the Arkansas Public Employees' Retirement System by depositing the total amount of the refund with regular interest from the date of withdrawal to the date of deposit. (B) A member who has reestablished service credit is restored to the date of hire that corresponds to the reestablished actual service.

Ark. Code Ann. § 24-4-605 Proration of public employer share of annuity reserve.

In the event a member retires with credited service arising from his or her employment by the state, a county, and a municipality, the public employer share of his or her annuity reserve shall be prorated between the state division, county division, and municipal division in accordance with the portions of his or her credited service acquired under each division.

Ark. Code Ann. § 24-4-606 Annuity options.

(a) A member may elect to receive his or her annuity as a straight life annuity or elect to have that annuity reduced and designate a beneficiary in writing and file the election with the Arkansas Public Employees' Retirement System before that annuity starting date under one (1) of the following options: (1) Option A60 — 60 Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated . If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-eight percent (98%) of the straight life annuity; (2) Option A120 — 120 Months Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated . If there is no beneficiary surviving, the lump sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-four percent (94%) of the straight life annuity; (3) Option B50 — Fifty Percent (50%) Survivor Beneficiary Annuity. (A)(i) Under Option B50, the retirant shall be paid a reduced annuity for life , and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated . (ii) The member may elect either : (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child aged forty (40) or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty- eight percent (88%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one- half of one percent (0.5%), for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half of one percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or (4) Option B75 — Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A)(i) Under Option B75, the retirant shall be paid a reduced annuity for life , and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated . (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child aged forty (40) or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty- three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively. (b)(1)(A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file with the system upon: (i) The death, divorce, or other marriage dissolution from the member's spouse; or (ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under § 24-4-606(a). (B) The member's election under subsection (b) of this section shall return the retirant to his or her straight life, or the member may elect the Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election . (2)(A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse if the election is: (i) Submitted on a form approved by the system; and (ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date. (B) The election shall be effective the first day of the month following the receipt of the notice. (c) If a member fails to elect an option, his or her annuity shall be paid to him or her as a straight life annuity. (d) The surviving spouse of a member of the system who retired on or after February 1, 1991, and who elected a straight life annuity shall be entitled to receive a survivor's annuity equal to the amount that would have been received had the member elected Option B75, provided: (1) The member dies within twelve (12) months of the effective date of retirement; and (2) The surviving spouse makes application to the system within twelve (12) months of the date of the member's death.

Ark. Code Ann. § 24-4-607 Redetermination of benefits.

(a) Each July 1 the Arkansas Public Employees' Retirement System shall redetermine the amount of each monthly benefit which has been payable by the system for at least twelve (12) full calendar months. The redetermined amount shall be payable for the following twelve (12) calendar months. (b) The redetermined amount shall be the amount of the benefit payable as of the immediately preceding July 1 increased by three percent (3%). (c)(1) If a person is first hired by a system-covered employer on or after July 1, 2022, and retires under the eligibility requirements of the system, the monthly benefit for the person shall be redetermined in accordance with subdivision (c)(2) of this section. (2)(A) The redetermined amount for a person described in subdivision (c)(1) of this section shall be the amount of the monthly benefit otherwise payable as of the immediately preceding July 1 increased by the lesser of three percent (3%) or the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers as determined by the United States Department of Labor over the one-year period ending in the December immediately preceding the date for which the redetermined amount is being calculated. (B) The redetermined amount of the monthly benefit to be paid to the person shall not be less than the redetermined amount of the monthly benefit paid to the person in the preceding year.

Ark. Code Ann. § 24-4-608 Death before retirement — Exception.

(a) Effective July 1, 2001, if a member or former member with five (5) or more years of actual service dies before retirement, the applicable benefits provided in this section shall be allowed upon the survivor's written application filed with the Arkansas Public Employees' Retirement System. (b) To compute benefits provided by this section, the deceased member's or deceased former member's compensation at the time of death shall be the member's compensation for the year immediately preceding the cessation of his or her pay. (c)(1) A deceased member's or deceased former member's surviving spouse who was married to the member at least six (6) months immediately preceding the member's death shall receive an annuity computed in the same manner in all respects as if the member or former member had: (A) Retired the date of his or her death with entitlement to an annuity provided for in § 24-4-601; (B) Elected the Option B75 survivor annuity provided for in § 24-4-606(a)(4); and (C) Nominated his or her spouse as joint beneficiary. (2)(A)(i) If the deceased member or deceased former member had satisfied the age and service requirements provided for in § 24-4-101 or had acquired twenty (20) years of actual service, then the spousal annuity shall be payable for life. (ii) If the deceased member or deceased former member had not satisfied the age and service requirement provided for in § 24-4-101 or had not acquired twenty (20) years of actual service, then the spousal annuity shall be payable until the earlier of his or her remarriage or death. (B)(i) A surviving spouse who is otherwise eligible but whose benefit has been deferred because the spouse did not meet the age requirements in effect before July 1, 1999, shall be eligible to commence a spousal annuity effective July 1, 1999. (ii) However, the spousal annuity in subdivision (c)(2)(B)(i) of this section shall not be retroactive. (3) The spousal annuity shall not be less than ten percent (10%) of the deceased member's or deceased former member's covered compensation at the time of death. (4) For as long as the surviving spouse has in his or her care any of the deceased member's or deceased former member's dependent children who receive a benefit provided for in this section, there shall be payable to him or her a spousal annuity as indicated in this section which shall not be less than ten percent (10%) of the deceased member's or deceased former member's compensation at the time of death. (d)(1)(A) A deceased member's or deceased former member's dependent child or dependent children shall each receive an annuity of the greater of either ten percent (10%) of the deceased member's or deceased former member's covered compensation at the time of death or an equal share of one hundred fifty dollars ($150) monthly. (B) For three (3) or more dependent children, each dependent child shall receive an annuity of an equal share of the greater of either twenty-five percent (25%) of the covered compensation or one hundred fifty dollars ($150) monthly. (2)(A) A child is considered a dependent child as used in subdivision (d)(1) of this section and for purposes of receiving a child survivor's annuity until the child's death, marriage, or attainment of twenty-three (23) years of age, whichever occurs first. (B) The twenty-three maximum age shall be extended for any child who has been deemed physically or mentally incompetent by an Arkansas court of competent jurisdiction or by the Board of Trustees of the Arkansas Public Employees' Retirement System, for as long as the incompetency exists. (3) Once a child ceases to be a dependent child, his or her annuity shall terminate, and there shall be a redetermination of the amounts payable to any remaining dependent children. (e)(1) If at the time of the deceased member's or deceased former member's death there is neither a spouse nor a dependent child, each dependent parent shall receive an allowance of the greater of ten percent (10%) of the covered compensation or an equal share of one hundred fifty dollars ($150) monthly . (2) A dependent parent eligible for a survivor benefit under this section shall be claimed as a dependent on the deceased member's or deceased former member's federal tax return for not less than one (1) year immediately preceding the member's death. (f)(1) If no annuity can become payable to a dependent child due to the death of the member or former member , the surviving spouse or dependent parents may elect to receive a refund of the member's or former member's accumulated contributions as provided in § 24-4-602(d) in lieu of any benefits which could become payable under this plan if: (A) The surviving spouse or dependent parents are the only persons who will be eligible for monthly benefits; and (B) The spouse or dependent parents are also the designated beneficiaries of the deceased member or deceased former member . (2) The option to choose a refund of the deceased member's or deceased former member's contributions shall also be afforded to any spouse or dependent parent qualified under this section whose eligibility for the benefit occurred before the passage of this act and who could not exercise the option. (3) A refund of the deceased member's or deceased former member's accumulated contributions made to the surviving spouse or dependent parents under this section precludes any right or future claim to monthly retirement benefits due to the death of the member or former member. (g)(1) In the event that all the annuities provided for in this section payable on account of the member's or former member's death terminate before there has been paid an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the member's or former member's deposit account at the time of his or her death, the difference between the accumulated contributions and the aggregate amount of annuity payments shall be paid to such person as he or she shall have nominated by written designation duly executed and filed with the system. (2) If there is no designated person surviving at termination, the difference shall be paid to the deceased member's or deceased former member's estate. (h) The provisions of this section shall not be applicable in determining survivor benefits under the General Assembly Division or the State Constitutional Officers' Division of the Arkansas Public Employees' Retirement System if a benefit is provided to the surviving spouse by other laws applicable to the Arkansas Public Employees’ Retirement System. (i) The benefits provided in this section for former members shall not apply to former members who terminated covered employment prior to July 1, 1997, with less than ten (10) years of service or whose death occurred before July 1, 2001.

Ark. Code Ann. § 24-4-609 Effective date of benefits — Survivors and beneficiaries.

(a) The effective date of monthly benefits payable to a survivor of a deceased member under § 24-4-608 is the first day of the calendar month next following the month in which the member died. (b) The effective date of monthly benefits payable to a beneficiary of a retirant under § 24-4-606 is the first day of the calendar month next following the month in which the retirant died.

Ark. Code Ann. § 24-4-610 Increased benefits for persons retiring by June 1, 1985.

(a) On July 1, 1987, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired June 1, 1985, or before, shall be increased as follows: (1) Those retirants and beneficiaries who retired June 1, 1985, or before, shall receive five percent (5%) of the benefit amount payable June 1, 1986, for each full year from the date of retirement through June 1, 1987, with a maximum increase payable of twenty percent (20%) of the June 1, 1987, retirement benefit; (2) The following schedule shall be used to determine the percent of increase due: (b)(1) The increase in benefits provided in subsection (a) of this section shall be added to the monthly benefit after the annual postretirement increase based on the consumer price index has been applied. (2) The increase provided in subsection (a) of this section shall be added to the base annuity of the member or beneficiary. Date of Retirement Percent of Increase 7-1-85 and after 0% 7-1-84 through 6-1-85 5% 7-1-83 through 6-1-84 10% 7-1-82 through 6-1-83 11% 7-1-81 through 6-1-82 12% 7-1-80 through 6-1-81 13% 7-1-79 through 6-1-80 14% 7-1-78 through 6-1-79 15% 7-1-77 through 6-1-78 16% 7-1-76 through 6-1-77 17% 7-1-75 through 6-1-76 18% Before 7-1-75 20% Click to view table.

Ark. Code Ann. § 24-4-611 Minimum monthly benefit — Lump sum payment of reserve value.

(a) A member who is vested under the Arkansas Public Employees' Retirement System shall be entitled to a minimum monthly benefit of one hundred fifty dollars ($150). (b)(1) Before the first monthly benefit payment, the Arkansas Public Employees' Retirement System may pay the reserve value in lieu of the monthly benefit as a lump sum to a retiree, or to a beneficiary in the event of the death of a member before retirement, if the monthly benefit is less than one hundred fifty dollars ($150). (2) The reserve value shall be the actuarial equivalent of the annuity otherwise payable. (3) A lump-sum payment of the reserve value is a complete discharge of all liability under the Arkansas Public Employees' Retirement System for the member’s annuity. (c) The Arkansas Public Employees' Retirement System shall obtain the consent of the member before the reserve value is paid.

Ark. Code Ann. § 24-4-612 Increase in benefits.

(a) On July 1, 1991, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System, who retired June 1, 1991, or before, shall be increased by four percent (4%) of the benefit payable on June 1, 1991. (b) The increase in benefits provided in subsection (a) of this section shall be added to the monthly benefit after the annual postretirement increase based on the consumer price index has been applied, and the increase in subsection (a) of this section shall be added to the base annuity of the retirant or beneficiary.

Ark. Code Ann. § 24-4-613 Benefits for contributory members.

(a) All contributory members of the Arkansas Public Employees' Retirement System who are retired as of August 13, 1993, or who retire after August 13, 1993, shall receive benefits at least equal to the amount of benefits they would have received had they retired as noncontributory members of the system. (b) The provisions of this section are retroactive to January 1, 1993.

Ark. Code Ann. § 24-4-614 Increase in monthly benefit amount — 1993.

(a) On July 1, 1993, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired on June 1, 1993, or before, shall be increased by two and sixty-one hundredths percent (2.61%) of the benefit payable on June 1, 1993. (b) The increase in benefits provided in subsection (a) of this section shall be added to the monthly benefit after application of the annual postretirement increase, which is based on the consumer price index.

Ark. Code Ann. § 24-4-615 Maximum benefit limitation.

(a) Notwithstanding any other provision of this chapter, benefits paid under the provisions of this chapter shall not exceed the limitations of the Internal Revenue Code, 26 U.S.C. § 415 that are applicable to governmental retirement plans. (b)(1) The Board of Trustees of the Arkansas Public Employees' Retirement System is hereby empowered and authorized to promulgate all necessary rules to implement the limitations of the Internal Revenue Code, 26 U.S.C. § 415. (2) The rules adopted by the board pursuant to this section shall be amended to reflect any changes in the content or application of the Internal Revenue Code, 26 U.S.C. § 415 enacted by the United States Congress or promulgated by the Internal Revenue Service.

Ark. Code Ann. § 24-4-616 Increase in monthly benefit amount — 1995.

On July 1, 1995, the monthly benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired on June 1, 1995, or before, shall be increased by six and forty-five-hundredths percent (6.45%) of the benefit payable on June 1, 1995.

Ark. Code Ann. § 24-4-617 Increase in monthly benefit amount — 1997.

On July 1, 1997, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired on or before June 1, 1997, shall be increased by three percent (3%) of the benefit payable on June 1, 1997.

Ark. Code Ann. § 24-4-618 Increased benefits for persons retired before July 1, 1999.

On July 1, 1999, and thereafter, the monthly benefit payable to the retirants and the beneficiaries of retirants of the Arkansas Public Employees' Retirement System who retired before July 1, 1989, shall be increased by an amount equal to one percent (1%) of the benefit payable on June 1, 1999, for each year or portion of a year of retirement prior to July 1, 1989.

Ark. Code Ann. § 24-4-619 Increased benefits for persons retired before June 1, 1999.

In addition to the monthly retirement benefit increase provided in § 24-4-618 , each retirant and beneficiary of a retirant of the Arkansas Public Employees' Retirement System who retired on or before June 1, 1999, shall receive an increase in his or her monthly benefit of fifty dollars ($50.00).

Ark. Code Ann. § 24-4-620 Partial annuity withdrawal provision.

(a) Any member who does not terminate employment and retire on the date that member meets the age and service requirements of § 24-4-508 for an unreduced annuity and has not elected to participate in the Deferred Retirement Option Plan as provided in § 24-4-801 et seq. may elect at the time of retirement to participate in the Arkansas Public Employees' Retirement Partial Annuity Withdrawal Program. (b) A member electing to participate shall be eligible to receive, at the time of retirement, a lump-sum distribution in an amount not exceeding one (1) month of benefit for each completed month of service beyond eligibility for an unreduced benefit. The lump sum shall not exceed an amount equal to sixty (60) months of benefits. (c) A member electing to participate shall have his or her lifetime annuity reduced by an actuarially determined equivalent in accordance with rules adopted by the Board of Trustees of the Arkansas Public Employees' Retirement System.

Ark. Code Ann. § 24-4-621 Increase in benefits.

(a) On July 1, 2001, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired on or before June 1, 2001, shall be increased by one and seven-tenths percent (1.7%) of the benefit payable on June 1, 2001. (b) The increase in benefits provided in subsection (a) of this section shall be added to the monthly benefit after the annual postretirement increase.

Ark. Code Ann. § 24-4-622 Monthly benefit increase.

(a) On July 1, 2007, the monthly retirement benefit payable to retirants and beneficiaries of the Arkansas Public Employees' Retirement System who retired on or before June 1, 2007, shall be increased by one percent (1%) of the benefit payable on June 1, 2007. (b) The increase in benefits under subsection (a) of this section shall be added to the monthly benefit after the annual postretirement increase.

Ark. Code Ann. § 24-4-623 Final average compensation.

(a)(1) For a member first hired by a system-covered employer on July 1, 2022, or after, the average of the five (5) highest annual compensations paid to the member during a completed fiscal year of credited service with a public employer shall determine the final average compensation that shall be used to determine the member’s monthly retirement benefit. (2) The five-year average shall be the greatest of the following: (A) One-fifth (1/5) of the following: The total of the highest compensations paid during the four (4) completed fiscal years when added to the total fifth-highest compensation paid during the completed fiscal year; or (B) One-fifth (1/5) of the following: The total of the highest compensations paid during the four (4) completed fiscal years added to the total of the compensation paid for the months of credited service within the incomplete fiscal year in which the member retires, provided there are some, and the total fifth highest compensation paid during the completed fiscal year which has been multiplied by the number of months remaining in the fiscal year in which retirement occurs and divided by twelve (12). (3) Should the member have less than the minimum five (5) years of credited service, "average compensation" means the annual average compensations to the member during his or her total years of actual service. (b)(1) For a member first hired by a system-covered employer before July 1, 2022, the average of the three (3) highest annual compensations paid during a completed fiscal year of credited service with a public employer determines the final average compensation to be used in determining a member's monthly retirement benefit. (2) The three-year average shall be the greatest of the following: (A) One-third (1/3) of the following: The total of the highest compensations paid during the two (2) completed fiscal years when added to the total third highest compensation paid during the completed fiscal year; or (B) One-third (1/3) of the following: The total of the highest compensations paid during the two (2) completed fiscal years added to the total of the compensation paid for the months of credited service within the incomplete fiscal year in which the member retires, provided there are some, and the total third highest compensation paid during the completed fiscal year which has been multiplied by the number of months remaining in the fiscal year in which retirement occurs and divided by twelve (12). (3) Should the member have less than the minimum three (3) years of credited service, "average compensation" means the annual average compensations to the member during his or her total years of actual service. (c)(1) If a member's rate of pay is set by Arkansas Constitution, Amendment 70, § 1, then the member's "average compensation" shall not be less than the member's: (A) Rate of pay at the time of separation from covered employment; and (B) Highest rate of such pay. (2) If a member served at any time in an office whose rate of pay is set by Arkansas Constitution, Amendment 70, § 1, and that member was a member of the General Assembly on December 31, 1978, then the member's "average compensation" shall not be less than the rate of pay currently set for the highest legislative office the member held.

Ark. Code Ann. § 24-4-723 Members joining at same time as employer — Current service credit.

(a)(1) Any member of the Arkansas Public Employees' Retirement System who became, or becomes, a member on the date his and her employer became, or becomes, a public employer in the system shall receive current service credit for employment with a public employer in the system but only if the employment occurred during the period from July 1, 1957, to the date the public employer entered the system in the case of state, county, or municipal employees or during the period from October 1, 1957, to October 1, 1965, in the case of nonteaching public school employees, and if the member pays, or causes to be paid, all employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system. (2) The member shall receive credit for employment with the University of Arkansas System if the employee was not eligible for coverage or did not participate in a retirement plan authorized by the University of Arkansas System and by the laws of the State of Arkansas during that service. (3) The member may pay for all his or her current service credit or a portion thereof consisting of multiples of one (1) year. (b)(1) Any member of the system who became, or becomes, a member on the date his or her employer became, or becomes, a public employer in the system and who did not, or does not, qualify for free prior service credit shall receive current service credit for employment with a public employer in the system or with the University of Arkansas System if the employee was not eligible for coverage or did not participate in a retirement plan authorized by the University of Arkansas and by the laws of the State of Arkansas. He or she shall receive credit only if he or she has at least five (5) years of current service credit since becoming a member of the system, and he or she pays, or causes to be paid, all employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system. (2) The payment shall be made in a lump sum. (3) The member may pay for all his or her prior and interim current service or a portion thereof consisting of multiples of one (1) year.

Ark. Code Ann. § 24-4-724 Members joining after employer — Current service credit.

(a)(1)(A) Any member of the Arkansas Public Employees' Retirement System who became, or becomes, a member after the date that his or her employer became, or becomes, a public employer in the system shall receive current service for employment with a public employer in the system or with a municipality in the State of Arkansas if the employee was not eligible for coverage or does not participate in or is not eligible to receive a benefit from a retirement plan authorized by a municipality in the State of Arkansas and by the laws of the State of Arkansas during employment. (B) He or she shall receive credit only if he or she has at least five (5) years of current service credit since becoming a member of the system and he or she pays, or causes to be paid, all employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system. (2) As used in this subsection, employment by a municipality in the State of Arkansas shall include the mayor, city attorney, city treasurer, city clerk, clerk-treasurer, municipal judge, municipal court clerk, and any other city employee. (b) The compensation to be used in computing the payments shall be the compensation on which contributions would have been made had the person been a member of the system during the time for which current service credit is purchased. (c) The payment shall be made in a lump sum. (d) The member may pay for all his or her prior and interim current service or a portion thereof consisting of multiples of one (1) year.

Ark. Code Ann. § 24-4-727 War Memorial Stadium Commission employees.

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System is directed to include within the membership of the Arkansas Public Employees' Retirement System, as created by this chapter, all employees of the War Memorial Stadium Commission who are not members of, or eligible for membership in, some other state-supported retirement system other than Social Security. (b)(1) The effective date of membership of the employees in the Arkansas Public Employees' Retirement System shall be July 1, 1969. All the employees enrolled in the system shall be subject to the rights, privileges, and limitations prescribed in this chapter. (2) Every such employee shall become a member of the Arkansas Public Employees' Retirement System as a condition of continuing or obtaining employment with the commission. (c) Any employee included within the membership of the Arkansas Public Employees' Retirement System pursuant to this section shall be given credit for service rendered prior to July 1, 1957, as an employee of a public employer, as defined in § 24-4-101, or as an employee of the commission, if the employee was so employed on July 1, 1957, and on July 1, 1969. (d)(1)(A) Any employee included within the membership of the Arkansas Public Employees' Retirement System by this section who was an employee of the commission on July 1, 1969, may apply for and receive current service credit for service rendered to the commission from July 1, 1957, to July 1, 1969. (B) The employee shall receive credit only if the employee pays or causes to be paid to the Arkansas Public Employees' Retirement System Fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer from July 1, 1957, to July 1, 1967, and at the rate of four percent (4%) for the employee and five percent (5%) for the employer from July 1, 1967, to July 1, 1969, that would have been paid had the employee been a member of the Arkansas Public Employees' Retirement System during that time. (2) Interest at the rate of four percent (4%) per annum compounded annually from July 1, 1957, shall be paid on all contributions, which shall be paid in full on or before July 1, 1970. (e) The Department of Parks, Heritage, and Tourism on behalf of the commission shall pay into the fund such sums of money as are necessary to match the contributions of its employees in the same form and manner as other public employers and shall be subject to all the provisions of this chapter, to the same extent as other public employers. (f)(1) The payments received by the Arkansas Public Employees' Retirement System under subsection (e) of this section shall be credited to the applicable employers' accumulation account. (2) The employee payments shall be credited to the member's individual account in the members' deposit account.

Ark. Code Ann. § 24-4-729 Conservation district employees.

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System is directed to include within the membership of the Arkansas Public Employees' Retirement System, as created by this chapter, all employees of conservation districts organized and operating under the provisions of this chapter. (b)(1)(A) The effective date of membership of the employees in the system shall be July 1, 1973. (B) The employees enrolled in the system shall be subject to the rights, privileges, and limitations prescribed in this chapter. (2) Every such employee shall become a member of the system as a condition of continuing or obtaining employment with any conservation district. (c) Any employee included within the membership of the system pursuant to this section shall be given credit for service rendered prior to July 1, 1957, as an employee of a public employer, as defined in § 24-4-101, or as an employee of a conservation district organized and operating under this chapter, if the employee was so employed on July 1, 1957, and on July 1, 1973. (d)(1)(A) Any employee included within the membership of the system by this section who is an employee of a conservation district on July 1, 1973, may apply for and receive current service credit for service rendered as an employee of a public employer, as defined in § 24-4-101, or as an employee of a conservation district from July 1, 1957, to July 1, 1973. (B) The employee shall receive credit only if the employee pays or causes to be paid to the Arkansas Public Employees' Retirement System Fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer from July 1, 1957, to July 1, 1967, four percent (4%) for the employee and five percent (5%) for the employer from July 1, 1967, to July 1, 1969, and five percent (5%) for the employee and seven percent (7%) for the employer from July 1, 1969, to July 1, 1973, that would have been paid had the employee been a member of the system during that time. (2) Interest at the rate of four percent (4%) per annum compounded annually from July 1, 1957, shall be paid on all contributions, which shall be paid in full on or before July 1, 1974. (e) Each conservation district shall pay into the fund such sums of money as are necessary to match the contributions of its employees in the same form and manner as other public employers and shall be subject to all the provisions of this chapter, to the same extent as other public employers.

Ark. Code Ann. § 24-4-732 Certain employees of state agencies — Early retirement incentives.

(a) In addition to the provisions of § 24-4-601 et seq.: (1)(A) A state employee who is an active member of the Arkansas Public Employees' Retirement System on March 12, 1987, and who is vested for a full age and service annuity and who has credit in the Arkansas Public Employees' Retirement System for three (3) consecutive actual years of service with the State of Arkansas immediately prior to his or her retirement date, may choose two (2) of the retirement incentives from subdivisions (a)(1)(B)-(E) of this section, provided the member retires during the period beginning with March 12, 1987, through January 1, 1988, inclusive. However, an employee who participates in this retirement incentive program is not eligible to accept further employment in which the state is the employer. (B)(i) In addition to the member's regular annuity, the Arkansas Public Employees' Retirement System will pay the cost of the employee's health and basic life insurance which he or she is eligible to continue as a retirant with the State Employees Group Insurance Plan. (ii) This payment is to be for the retirant's coverage only and is to be paid from the date of his or her retirement until the retirant's death. (C) For the purpose of computing the state employee member's annuity, his or her highest annual salary will be substituted for his or her final average compensation. (D) For the purpose of computing the state employee member's annuity, he or she will receive additional service credit equal to ten percent (10%) of his or her existing service credit. (E)(i) A state employee member may receive a retirement bonus which is a lump-sum payment equal to ten percent (10%) of the final annual salary of the employee not to exceed five thousand dollars ($5,000). (ii) The retirement bonus shall be paid from the contingency reserve fund of the Arkansas Public Employees' Retirement System; (2)(A) A state employee who is an active member of the Arkansas Public Employees' Retirement System on March 12, 1987, and who has credit in the Arkansas Public Employees' Retirement System for three (3) consecutive actual years of service with the State of Arkansas immediately prior to his or her retirement date and who has credit for not less than ten (10) actual years of service and has attained age fifty-five (55) or has credit for not less than twenty-eight (28) actual years of service regardless of age may choose two (2) of the retirement incentives from subdivisions (a)(2)(B)-(F) of this section, provided he or she retires during the period beginning with March 12, 1987, through January 1, 1988, inclusive. However, an employee who participates in this retirement incentive program is not eligible to accept further employment in which the state is the employer. (B)(i) The Arkansas Public Employees' Retirement System will pay the cost of the state employee's health and basic life insurance which the member is eligible to continue as a retirant with the State Employees Group Insurance Plan. (ii) The payment is to be for the retirant's coverage only and is to be paid from the date of his or her retirement until the retirant has attained age sixty-five (65). (C) For the purpose of computing the state employee member's annuity, his or her highest annual salary will be substituted for the member's final average compensation. (D) If the state employee member is within two (2) years of his or her full annuity age and if the member is eligible for an early reduced annuity as provided by § 24-4-510 or is within two (2) years of having thirty (30) years' actual credited service, then the member's annuity will not be reduced because of early retirement. (E) If the state employee member is within two (2) years of attaining the service requirement for a full annuity and has attained his or her full annuity age as provided by § 24-4-508 or is within two (2) years of having thirty (30) years' actual credited service, then the member's annuity will not be reduced because of early retirement. (F)(i) A state employee member may receive a retirement bonus which is a lump-sum payment equal to ten percent (10%) of the final annual salary of the employee not to exceed five thousand dollars ($5,000). (ii) The retirement bonus shall be paid from the contingency reserve fund of the Arkansas Public Employees' Retirement System; (3) Any employee of a state agency who is on April 8, 1987, an active member of the Arkansas Teacher Retirement System and who is not a member of the Arkansas Public Employees' Retirement System but who would otherwise qualify to retire before January 1, 1988, under the requirements of the Early Retirement Incentive Law of 1987, may elect to become a member, and his or her credited service in the Arkansas Teacher Retirement System will be transferred to the Arkansas Public Employees' Retirement System, subject to the following conditions: (A) The employee shall make the election on a form to be furnished by the Arkansas Public Employees' Retirement System, and the transfer shall become effective on the date of retirement; (B) The Arkansas Teacher Retirement System shall certify to the Arkansas Public Employees' Retirement System a record of the employee's service credit in the Arkansas Teacher Retirement System; and (C)(i) The employee shall retire under the noncontributory provisions of § 24-3-216 [repealed], if, at the time of the transfer the member was a noncontributory member of the Arkansas Teacher Retirement System and shall be entitled to a refund of employee contributions made in the Arkansas Teacher Retirement System since January 1, 1978. (ii) If, at the time of the transfer, the member was a contributory member of the Arkansas Teacher Retirement System, then the employee shall retire under the contributory provisions of subdivisions (a)(1) and (2) of this section; (4)(A) The Arkansas Public Employees' Retirement System shall pay monthly benefits to any employee covered by this section who elects to transfer from the Arkansas Teacher Retirement System for purposes of retiring under this section. (B) The Arkansas Public Employees' Retirement System shall certify monthly the amount of benefits paid hereunder, and the Arkansas Teacher Retirement System shall immediately transfer the amount from their benefit account to the proper account designated by the Arkansas Public Employees' Retirement System; and (5)(A) For those state employees who retire pursuant to the provisions of this section, the amount paid by the State Division of the Arkansas Public Employees' Retirement System as the cost of the employee's health and basic life insurance shall not exceed the amount of the employer's contribution for the coverage on the date of the employee's retirement and may be reduced at the time the employee qualifies under Medicare or Medicaid programs. (B) Any future increase in the cost of this coverage shall be borne by the employee and not by the system from which the employee retired. (b)(1) No position being vacated as a result of an employee retiring pursuant to the provisions of this section shall be filled without the written approval of the Governor or the Chief Fiscal Officer of the State. (2) For those state-elected constitutional officers and members of the General Assembly who, as members of the State Division of the Arkansas Public Employees' Retirement System, would qualify by meeting all the requirements of this section to retire under the early retirement incentives in this section by January 1, 1988, the time period in which they may elect to retire under this section shall be extended to the last day of their current terms for which they are serving. (3) Nothing in this section shall be construed to allow an elected official to continue to accumulate salary earnings in the system upon which his or her final annuity shall be based. An elected official opting to retire under subdivision (b)(2) of this section shall have all contributions to the system terminated on December 31, 1987. (c) Any member of the Arkansas Public Employees' Retirement System who qualifies by meeting all the requirements of this section to retire under the early retirement incentives in this section by January 1, 1988, and who suffered from a work-related injury for which benefits were paid under compensation laws after July 1, 1986, and before October 1, 1986, and whose final annuity would otherwise be reduced due to the reduced salary and lost credited service, shall be entitled to obtain credited service for the actual time period of reduced salary by paying to the system prior to December 31, 1987, the amount of money both he or she and his or her employer would have contributed on his or her behalf plus interest at the rate of six percent (6%) per annum calculated from the date the contributions would have been made until the date he or she makes payment to the system.

Ark. Code Ann. § 24-4-733 Certain county employees — Early retirement incentives.

(a) In addition to the provisions of § 24-4-601 et seq.: (1)(A) A county employee who is an active member of the County Division of the Arkansas Public Employees' Retirement System on April 7, 1987, and who is vested for a full age and service annuity and who has credit in the system for three (3) consecutive actual years of service with the county immediately prior to his or her retirement date may choose two (2) of the retirement incentives from subdivisions (a)(1)(B)-(D) of this section, provided the employee retires during the period beginning with April 7, 1987, through January 1, 1988, inclusive. Provided further, an employee who participates in this retirement incentive program is not eligible to accept further employment in which the county or any other county is the employer. (B) For the purpose of computing the county employee member's annuity, the member's highest annual salary will be substituted for his or her final average compensation. (C) For the purpose of computing the county employee member's annuity, the member will receive additional service credit equal to ten percent (10%) of his or her existing service credit. (D)(i) A county employee member may receive a retirement bonus which is a lump sum payment equal to ten percent (10%) of the final annual salary of the employee not to exceed five thousand dollars ($5,000). (ii) The retirement bonus shall be paid from the contingency reserve fund of the Arkansas Public Employees' Retirement System; and (2)(A) A county employee who is an active member of the county division of the system on April 7, 1987, and who has credit in the system for three (3) consecutive actual years of service with the county immediately prior to his or her retirement date and who has credit for not less than ten (10) actual years of service and has attained the age of fifty-five (55) or has credit for not less than twenty-eight (28) actual years of service regardless of age may choose two (2) of the retirement incentives from subdivisions (a)(2)(B)-(E) of this section, provided the member retires during the period beginning with April 7, 1987, through January 1, 1988, inclusive. Provided further, an employee who participates in this retirement incentive program is not eligible to accept further employment in which the county or any other county is the employer. (B) For the purpose of computing the county employee member's annuity, the member's highest annual salary will be substituted for his or her final average compensation. (C) If the county employee member is within two (2) years of his or her full annuity age and if the member is eligible for an early reduced annuity as provided by § 24-4-510 or is within two (2) years of having thirty (30) years' actual credited service, then his or her annuity will not be reduced because of early retirement. (D) If the county employee member is within two (2) years of attaining the service requirement for a full annuity and has attained his or her full annuity age as provided by § 24-4-508 or is within two (2) years of having thirty (30) years' actual credited service, the member's annuity will not be reduced because of early retirement. (E)(i) A county employee member may receive a retirement bonus which is a lump sum payment equal to ten percent (10%) of the final annual salary of the employee not to exceed five thousand dollars ($5,000). (ii) The retirement bonus shall be paid from the contingency reserve fund of the Arkansas Public Employees' Retirement System. (b) No position being vacated as a result of a county employee's retiring pursuant to the provisions of this section shall be filled without the approval by resolution of the quorum court. (c) For those elected county constitutional officers who, as members of the county division of the system, would qualify by meeting all the requirements in subsection (a) of this section to retire under the early retirement incentives in subsection (a) of this section by January 1, 1988, the time period in which they may elect to retire shall be extended to the last day of their current terms for which they are serving. (d)(1) Nothing in this section shall be construed to allow an elected official to continue to accumulate salary earnings in the system upon which his or her final annuity shall be based. (2) An elected official opting to retire under subsection (c) of this section shall have all contributions to the system terminated on December 31, 1987. (e)(1) As used in this section, “contingency reserve fund” means that amount of the Arkansas Public Employees' Retirement System's assets at cost determined by the annual actuarial valuation to be in excess of the total system benefit liabilities. (2) There shall be annual transfers between the employee's accumulation account and the contingency reserve fund as necessary to recognize the actuarially determined balance of that fund. (f) Any elected official who qualifies for retirement incentives under this section shall forfeit all retirement benefits if he or she knowingly and willfully misstates the amount of his or her credited service to the system.

Ark. Code Ann. § 24-4-737 Certain city attorneys — Credited service.

(a) When the term of office of an elected city attorney is cut short due to the change in the form of city government and that person is employed to serve as the city attorney for the remainder of his or her term, he or she shall receive credited service under the Arkansas Public Employees' Retirement System for the remainder of his or her term, or portion thereof, that he or she is employed as the city attorney, to the same extent as if he or she were an elected city attorney instead of an employed city attorney. (b) The provisions of this section shall be retroactive to January 1, 1986.

Ark. Code Ann. § 24-4-739 Municipal employees.

(a)(1) Any municipal employee or municipal official, including a municipal judge, municipal court clerk, mayor, city attorney, city treasurer, city clerk, clerk-treasurer, and deputy city clerk, who was erroneously enrolled in the Arkansas Public Employees' Retirement System because of eligibility for membership in another system on or before January 1, 1991, may elect to remain a member of the Arkansas Public Employees' Retirement System or receive service credit in a reciprocal retirement system subject to employer certification that the employee was not enrolled in a local plan at the time of his or her employment. (2) Any employee as listed in subdivision (a)(1) of this section who, prior to this section, has been removed from membership in the Arkansas Public Employees' Retirement System because of eligibility for membership in another system established pursuant to state law or any member of a reciprocal retirement system may restore the refunded service and establish subsequent service by paying or causing to be paid to the Arkansas Public Employees' Retirement System the refunded contributions and the legally required contributions for subsequent service. (3) However, in no instance shall the same service time and related earnings be credited in more than one (1) system established pursuant to state law. (b)(1) The employee or member shall make election in writing to the Arkansas Public Employees' Retirement System and the eligible system within sixty (60) calendar days after being notified by the Arkansas Public Employees' Retirement System of the erroneous enrollment. (2) Failure to make an election within sixty (60) calendar days will result in the employee's or member's being removed from the Arkansas Public Employees' Retirement System. (c)(1) Should the employee or the member elect to become a member of the eligible system, as provided in subsection (a) of this section, or should the employee or member be removed from the Arkansas Public Employees' Retirement System because of failure to elect, as provided in subsection (b) of this section, the Arkansas Public Employees' Retirement System will refund to the employer all contributions, from both employee and employer, that were paid on behalf of the employee or member in question. (2) Upon receipt of the refunded contributions, the employer shall enroll and establish the proper service credit for the employee or member in the eligible system. (d)(1) In the event a local plan is established as provided for by state law, any member of the Arkansas Public Employees' Retirement System who would otherwise be eligible for this local plan may elect to remain in the Arkansas Public Employees' Retirement System or become a member of the local plan. (2) This election shall be made in writing to both plans within thirty (30) days of the establishment of the local plan. (e)(1) Any current member of the Arkansas Public Employees' Retirement System who, prior to January 1, 1991, had employment with a participating municipal employer in which such employment was eligible for membership in a local plan may purchase such service in the Arkansas Public Employees' Retirement System, provided the employer certifies that the person was not a member of a local plan. (2) The service will be credited only after such certification has been provided and the member has paid into the Arkansas Public Employees' Retirement System an amount equal to that which would have been paid had the service been reported at the time rendered plus six percent (6%) interest compounded annually from the date such service was rendered until the date of purchase.

Ark. Code Ann. § 24-4-740 Transfer of Director of the Administrative Office of Courts to Arkansas Public Employees' Retirement System.

(a) Effective July 1, 1993, the Director of the Administrative Office of the Courts shall cease to be a member of the Arkansas Judicial Retirement System. At that time, the director shall become a member of the Arkansas Public Employees' Retirement System. (b)(1)(A) The retirement and survivors' benefit to be received by the director occupying the position on July 1, 1993, shall not be less than that which he or she would have received under the provisions of § 24-8-218, including any increases after retirement, had he or she remained in the Arkansas Judicial Retirement System. (B) Provided, further, he or she shall meet the eligibility requirements of § 24-8-215 and § 24-8-218 in order to receive the retirement and survivors' benefits provided under § 24-8-218 and shall meet the requirements of § 24-8-217 in order to receive the disability benefits provided under § 24-8-218. (2)(A) The State of Arkansas, as employer, shall contribute to the Arkansas Public Employees' Retirement System twelve percent (12%) of the salary amount of the director occupying the position on July 1, 1993. (B) The director occupying the position on July 1, 1993, shall contribute six percent (6%) of his or her pay until such time as he or she is eligible for retirement under the provisions of § 24-8-215. (C) Provided, further, all contributions made to the Arkansas Judicial Retirement System by the employer on behalf of the director occupying the position on July 1, 1993, and all contributions made by the director, shall be transferred to the Arkansas Public Employees' Retirement System. (D) In the event the director ceases to be a member prior to qualifying for retirement benefits, he or she shall be entitled to a refund of all contributions paid into the system by the director. (c) The retirement benefit to be received by any new person occupying the position of director after July 1, 1993, shall be based upon the regular annuity and benefit provisions for the Arkansas Public Employees' Retirement System. The contributions to be made by the employer shall be the same as those required for the State Division of the Arkansas Public Employees' Retirement System. The person occupying the position thereafter shall not make contributions to the system.

Ark. Code Ann. § 24-4-742 Credit for service with various local units of government.

(a) Any full-time employee of a public facilities board, rural waterworks facilities board, regional solid waste management board, joint county and municipal sanitation authority, regional water distribution board, public rehabilitation services corporation, or other local unit of government enrolled in the Arkansas Public Employees' Retirement System pursuant to this act who is a full-time employee of a participating public facilities board, regional solid waste management board, joint county and municipal sanitation authority, regional water distribution board, public rehabilitation services corporation, or other local unit of government in this state on the date his or her employer became, or becomes, a public employer in the system may apply for and receive current service credit for service rendered as a full-time employee of the public facilities board, regional solid waste management board, joint county and municipal sanitation authority, regional water distribution board, public rehabilitation services corporation, or other local unit of government. (b) The employee shall receive credit only if the employee or employer pays or causes to be paid to the Arkansas Public Employees' Retirement System Fund all necessary employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system. (c) The employer's contributions and employees' contributions, if applicable, shall be transmitted to the system in the form and manner, together with the supporting data, as the Board of Trustees of the Arkansas Public Employees' Retirement System shall prescribe from time to time. (d) The governing body of any public facilities board, rural waterworks facilities board, regional solid waste management board, joint county and municipal sanitation authority, regional water distribution board, public rehabilitation services corporation, or other local unit of government electing to include the full-time employees of the board within the membership of the system may pay the employer contributions and employee contributions, if applicable, on behalf of employees for services rendered.

Ark. Code Ann. § 24-4-743 Intergovernmental Juvenile Detention Council employees.

(a)(1) Any full-time employee of the Intergovernmental Juvenile Detention Council of the Tenth Judicial District enrolled in the Arkansas Public Employees' Retirement System pursuant to this section who is a full-time employee of the council on the date his or her employer becomes a public employer in the system, may apply for and receive current service credit for service rendered as a full-time employee of the council. (2) The employee shall receive credit only if the employee or employer pays, or causes to be paid, to the Arkansas Public Employees' Retirement System Fund all necessary employer contributions and employee contributions, if applicable, that would have been paid had the employee been a member of the system during that time, plus interest thereon at the rate directed by the Board of Trustees of the Arkansas Public Employees' Retirement System. (3) The employer's contributions and employees' contributions, if applicable, shall be transmitted to the system in the form and manner, together with the supporting data, as the board shall prescribe from time to time. (b) The council electing to include the full-time employees of the board within the membership of the system may pay the employer contributions and employee contributions, if applicable, on behalf of employees for services rendered.

Ark. Code Ann. § 24-4-744 Elected county official.

For the purpose of determining benefits under the Arkansas Public Employees' Retirement System, a member of the system who has service as an elected county official for a period during which the office was under the fee system, the salary of the member during that period shall be deemed to be the average salary for county officials in the same office in this state on July 1, 1997.

Ark. Code Ann. § 24-4-745 General Assembly employees.

(a) An employee of the General Assembly who has at least five (5) years' service in the Arkansas Public Employees' Retirement System and who served at least four hundred (400) days as a session employee of the General Assembly may apply for and receive current service credit in the system for service rendered as a session employee. (b) The employee shall receive credit only if the employee or employer pays or causes to be paid to the Arkansas Public Employees' Retirement System Fund: (1) All necessary employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time; (2) All employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time; and (3) Regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system. (c) The employer's contributions and employees' contributions, if applicable, shall be transmitted to the system in the form and manner, together with the supporting data, as the Board of Trustees of the Arkansas Public Employees' Retirement System shall prescribe from time to time. (d) The employer may pay the employer contributions and employee contributions, if applicable, on behalf of the employee for services rendered.

Ark. Code Ann. § 24-4-746 Authority to promulgate rules.

The Board of Trustees of the Arkansas Public Employees' Retirement System shall have the authority to promulgate such rules as are necessary to provide for the participation of employers defined as public rehabilitative services corporations or other local units of government under the provisions of § 4-34-101 and such local units of government as are provided for under this Code. Provided, however, the board shall not admit or retain any employer whose participation in the Arkansas Public Employees' Retirement System would jeopardize the tax-qualified status of the plan under the Internal Revenue Code, 26 U.S.C. § 1 et seq., or that would subject the plan to additional federal requirements, or to any other consequence that the board would determine to be detrimental to the system.

Ark. Code Ann. § 24-4-747 Erroneous membership of certain employees.

(a) A person who was erroneously included in the Arkansas Public Employees' Retirement System for at least two (2) years and whose disqualification from the Arkansas Public Employees' Retirement System was due to employment that caused the person to be a member of another state-supported or state-authorized retirement system may elect to restore service credit lost as a result of the erroneous dual coverage if: (1) The person is a member of the Arkansas Public Employees' Retirement System at the time of applying to restore the lost credited service; (2) The person applies to restore the lost service credit within two (2) years after the Arkansas Public Employees' Retirement System refunded contributions; and (3) Any contributions and interest that were refunded by the Arkansas Public Employees' Retirement System are repaid, along with any interest accruing from the date of the refunding until the funds are actually repaid to the Arkansas Public Employees' Retirement System. (b) A person who elects to restore credited service under this section shall not be entitled to receive credited service in the other state-supported retirement system for the same period. The other system shall refund contributions paid for the period plus reasonable interest on the contributions at the rate determined by the board of trustees of the other system.

Ark. Code Ann. § 24-4-748 Dual full-time employment.

(a) A person who was included in the Arkansas Public Employees' Retirement System for service at full-time employment while at the same time employed full time in another position covered under a municipal police pension and relief fund and whose disqualification from the system was due to dual coverage as a member of a municipal police pension and relief fund may receive service credit as a result of the dual coverage if: (1) After the initial full-time employment when service credit was lost, the person again becomes a member of the system; (2) The person applies to receive the lost service credit within five (5) years after the reemployment under the system; and (3)(A) The member pays or causes to be paid: (i) The employee contributions at the rate of compensation that would have been paid as a system member during that time; (ii) Employer contributions based on the normal employer cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had the person been a member during that time; and (iii)(a) Regular interest on the employee and employer contributions. (b) Interest shall be computed from the date the service was rendered to the date the payment is received by the system. (B) The member may purchase all of the service or any portion thereof in multiples of one (1) year. (b) A person who elects to restore credited service under this section shall be limited to receiving credited service in the system for up to five (5) years of the initial dual full-time employment. (c) The Board of Trustees of the Arkansas Public Employees' Retirement System shall have the authority to promulgate any necessary forms for application to restore the service and reasonable rules to implement this section.

Ark. Code Ann. § 24-4-749 Purchase of out-of-state governmental service.

(a) A member who has performed service other than military service as an employee of a state or local governmental entity in the United States other than in the State of Arkansas or the federal government may receive credited service for the out-of-state governmental employment if: (1) The member has at least five (5) years of credited service at the time of application; (2) The number of years of out-of-state governmental employment applied for does not exceed five (5) years; (3) At the time of application the member furnishes evidence of the out-of-state service that is acceptable to the Arkansas Public Employees' Retirement System; and (4) The member pays to the member's deposit fund an amount equal to the actuarial present value of the credited service applied for under this section based upon assumptions recommended by the actuary. (b) A member may not receive the credited service provided for in this section if the service is also used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state, or local government entity except a benefit under the Social Security Act, 42 U.S.C. § 301 et seq. (c) The service credit provided for in this section is subject to any applicable limits under the Internal Revenue Code, 26 U.S.C. § 1 et seq.

Ark. Code Ann. § 24-4-750 Arkansas District Judge Retirement System abolished — Powers, duties, and plan liabilities transferred to Arkansas Public Employees' Retirement System.

(a) The Arkansas District Judge Retirement System, established by § 24-8-801 et seq. [repealed], is abolished, and its powers, duties, and plan liabilities are transferred to the Arkansas Public Employees' Retirement System by a type 3 transfer as prescribed in § 25-2-106. (b) For purposes of this act, the Arkansas Public Employees' Retirement System shall be considered a principal department established by Acts 1971, No. 38. (c)(1) The Arkansas Public Employees' Retirement System shall maintain the same process of payments under § 24-4-751. (2) Active members of the Arkansas District Judge Retirement System on the date of the transfer shall continue to accrue the same program of benefits received before the transfer. (3) As employer, the government entity that pays the salary of a district judge shall make contributions to the Arkansas Public Employees' Retirement System as a percent of the salary of the active district judge at the rate previously established to fund the district judge benefit program unless the Arkansas Public Employees' Retirement System's actuary determines that a different required contribution rate should be applied. (d) Each district judge joining the Arkansas Public Employees' Retirement System after the date of transfer shall be deemed an elected official of a city or county and shall receive service credit under § 24-4-101(15)(B).

Ark. Code Ann. § 24-4-751 Additional funding for retirement benefits.

(a) The government entity that had previously established a local municipal judge's retirement fund shall be required to contribute an amount of money that represents the actuarially determined accrued liability for those judges and former judges who were covered by the local fund on December 31, 2004. (b) The assets in the local municipal judge retirement fund, not to exceed the amount in subsection (a) of this section, shall be paid to the Arkansas Public Employees' Retirement System on January 1, 2008. (c) If the local municipal judge retirement fund does not have sufficient money available to pay the amount determined in subsection (a) of this section to the system on January 1, 2008, then the remaining amount of actuarially determined accrued liability shall be paid on or before December 31 each year after for up to the next thirty (30) years based on a thirty-year amortization period. (d)(1) If the amount in the municipal judge retirement fund is greater than the actuarially determined amount of the liabilities to be transferred to the system, that excess may be retained by the sponsoring government entity for the sole purpose of paying the retirement benefits of district judges. (2) If at any time in the future an obligation to fund the system no longer exists, then any excess shall be retained by the sponsoring government entity. (e)(1) The accrued benefit used to determine the accrued liability under this section shall be determined by: (A) Calculating the benefit that the judge would be eligible to receive on December 31, 2004, as provided by law before July 16, 2003, if the judge was eligible to begin receiving benefits on January 1, 2005; and (B) Multiplying the amount in subdivision (e)(1)(A) of this section by the number of years of eligible service and then dividing by the greater of either the number of years of service needed to be eligible to retire or the current years of eligible service. (2) The service years shall be determined under the law before January 1, 2005. (f) The accrued benefit determined under subsection (e) of this section for any retiree or surviving spouse who is receiving benefits on December 31, 2004, shall be the amount that he or she is receiving or entitled to receive on that date.

Ark. Code Ann. § 24-4-752 State Police Trust Fund.

(a) All assets of the State Police Retirement System are transferred to the Arkansas Public Employees' Retirement System to hold in trust for the State Police Retirement System. (b) There is created under the Arkansas Public Employees' Retirement System a division that shall be known as the “State Police Trust Fund”. (c)(1) The State Police Trust Fund shall not be treated as segregated funds but shall be commingled with the assets of the Arkansas Public Employees' Retirement System strictly for investment purposes. (2) The assets shall be managed solely for the benefit of the retirees and beneficiaries of the State Police Retirement System and shall not be divested from the Arkansas Public Employees' Retirement System unless it can clearly be demonstrated it would be actuarially and fiscally prudent to do so. (d)(1) As employer, the Department of Arkansas State Police shall make contributions to the State Police Trust Fund based on a percentage of each active state police officer's salary at the rate established to fund the State Police Retirement System's benefit program before July 1, 2009. (2) All other sources of revenue commonly accruing to the State Police Retirement System shall be payable to the State Police Trust Fund. (e) The Board of Trustees of the State Police Retirement System, the Board of Trustees of the Arkansas Public Employees’ Retirement System, and administrative staff shall be immune from any suit or action based in whole or in part on the transfer of assets contemplated by this act.

Ark. Code Ann. § 24-4-801 Participation.

(a) In lieu of terminating employment and accepting a retirement benefit under the Arkansas Public Employees' Retirement System pursuant to § 24-2-201 et seq. and § 24-4-101 et seq., any person who is a member of the system and who meets the conditions specified in subsection (b) of this section may elect to participate in the Arkansas Public Employees' Retirement System Deferred Retirement Option Plan and to defer the receipt of retirement benefits in accordance with the provisions of this subchapter. (b) The conditions required for full participation in the plan are that the member must have at least thirty (30) years of actual service in the system. (c) The Board of Trustees of the Arkansas Public Employees' Retirement System, in consultation with its actuary, may promulgate rules lowering the required years of service for entry into the plan to an amount of not less than twenty-eight (28) years of service, subject to an early participation reduction. The reduction will be computed in a manner that is both equitable to all members and actuarially appropriate for the system.

Ark. Code Ann. § 24-4-802 Eligibility — Effect of election.

(a) When a member of the Arkansas Public Employees' Retirement System elects participation in the Arkansas Public Employees' Retirement System Deferred Retirement Option Plan, the member shall fill out an application form as developed by the Board of Trustees of the Arkansas Public Employees' Retirement System. The member's application shall be reviewed to determine whether or not the member meets the eligibility requirements specified in this subchapter. The member's deferred retirement option date shall be the later of: (1) The first day of the month following the system's determination that the member is eligible for plan participation; or (2) The date requested by the member on the application. (b)(1) A member who elects participation in the plan may elect one (1) of the annuity options provided in § 24-4-606. (2) The election shall be deemed to apply to the member's deferred retirement option plan benefit as well as to the member's monthly retirement benefit from the system at the time it becomes payable. (c)(1) The election to participate in the plan is irrevocable and the duration of participation in the plan for active members shall not exceed ten (10) years. (2) Under no circumstances shall a member receive service credit under any state-supported retirement system during a period of participation or following a period of such participation in the same retirement system's plan. (d) When a member begins participation in the plan, the: (1) Employee contributions to the system on behalf of the member shall cease; and (2) Employer contributions to the system on behalf of the member shall continue.

Ark. Code Ann. § 24-4-803 Amount of benefit — Amount of contribution — Interest.

(a)(1) The member's deferred benefit shall be the monthly benefit to which the member would have been entitled if the member had thirty (30) years of service and had actually retired on the member's deferred retirement option date with regard to the provisions of § 24-4-606 related to annuity options. (2) If the member has less than thirty (30) years of actual service, but at least twenty-eight (28) years of service, the portion of the member's deferred benefit that is contributed to the Arkansas Public Employees' Retirement System Deferred Retirement Option Plan will be reduced by the percentage established by the Board of Trustees of the Arkansas Public Employees' Retirement System, and then shall be subject to the additional computations as set forth in subsections (b) and (c) of this section. (b) The member's deferred option account shall be the account in which shall be accumulated the member's deferred option contributions, plus interest. Effective July 1, 1999, the Arkansas Public Employees' Retirement System's deferred option contributions shall be at least seventy-five percent (75%) of the system's deferred option benefit with the exact contribution to be determined in accordance with the rules of the board as is actuarially appropriate for the system. The member shall be informed of the amount of his or her deferred option contribution and informed that his or her selection of the deferred retirement option, the time of the retirement deferral, and the selection of the retirement annuity are irrevocable. (c) The interest on contributions to the member's deferred option account shall be credited to the individual account balance of the member on an annual basis at the end of each fiscal year. The board shall determine the rate of interest to be credited to each member's deferred option account.

Ark. Code Ann. § 24-4-804 Cessation of participation — Definition.

(a) The member's participation in the Arkansas Public Employees' Retirement System Deferred Retirement Option Plan shall cease at the time the member separates from service. (b)(1)(A) When the member's participation in the plan ceases, the member shall elect to receive the balance in the deferred option account as either a lump sum or as a monthly benefit paid in the form elected by the member for payment of the deferred retirement benefit. (B) The Board of Trustees of the Arkansas Public Employees' Retirement System shall determine factors to be used for the conversion of deferred option account balances to monthly amounts. (2) Furthermore, when the member's participation in the plan ceases, the board shall cause the member's annuity benefit to be paid directly to the member in the form of regular monthly amounts in the same amount and manner as would have been the case if the member had retired on the deferred retirement option date and had made the same election pursuant to § 24-4-606 that was made on or before the deferred retirement option date. (c)(1) When a member's participation in the Arkansas Public Employees' Retirement System Deferred Retirement Option Plan ceases, the member shall separate from service as provided in § 24-4-520 unless the separation period would prevent a popularly elected official from taking or holding office. (2)(A)(i) This section does not apply to a member who: (a) Was an employee of the Arkansas Forestry Commission, the Arkansas Livestock and Poultry Commission, the Arkansas Board of Animal Health, or the State Plant Board; (b) Is a participant in the plan; and (c) Is an essential seasonal staff member with the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board. (ii) This section does not apply to a member who: (a) Was an employee of the Department of Agriculture; (b) Is a participant in the plan; and (c) Is an essential seasonal staff member with the department. (B) As used in subdivision (c)(2)(A) of this section, “essential seasonal staff member” means an employee of the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board who: (i) Has specialized knowledge, skill, or training pertaining to necessary duties or tasks to be completed by the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board in times of emergency, disaster cleanup, extreme weather, or other circumstances deemed pressing by the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board; and (ii) Is employed by the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board on a part-time basis: (a) During times of emergency, disaster cleanup, extreme weather, or other circumstances deemed pressing by the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board; or (b) As an instructor to train other staff for times of emergency, disaster cleanup, extreme weather, or other circumstances deemed pressing by the department, the Arkansas Forestry Commission, the Arkansas Board of Animal Health, or the State Plant Board. (a) During times of emergency, disaster cleanup, extreme weather, or other circumstances deemed pressing by the department, the Arkansas Forestry Commission, the Arkansas Livestock and Poultry Commission, or the State Plant Board; or (b) As an instructor to train other staff for times of emergency, disaster cleanup, extreme weather, or other circumstances deemed pressing by the department, the Arkansas Forestry Commission, the Arkansas Livestock and Poultry Commission, or the State Plant Board.

Ark. Code Ann. § 24-4-805 Death or disability.

(a) In the event that an Arkansas Public Employees' Retirement System Deferred Retirement Option Plan participant dies, the benefits payable from the Arkansas Public Employees' Retirement System shall be determined as though the participant had separated from service and been found eligible for monthly benefits by the Board of Trustees of the Arkansas Public Employees' Retirement System on the day prior to the death, with death following immediately thereafter. (b) In the event that a plan participant applies for benefits from the system pursuant to § 24-4-511 related to disability retirement, the application shall be treated as an application for voluntary retirement pursuant to § 24-4-601 and no benefits other than those that would be payable without regard to the disability shall become payable.

Ark. Code Ann. § 24-4-806 Limitation on benefit enhancement.

(a) No benefit enhancement provided for by this subchapter shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization. (b) No benefit enhancement provided for by this subchapter shall be implemented by any publicly supported system which has unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years until the unfunded actuarial accrued liabilty is reduced to a level less than the standards prescribed by § 24-1-101 et seq.

Ark. Code Ann. § 24-4-901 Credited service — Reciprocity.

(a)(1) Upon the retirement of a member whose credited service results from employment covered by: (A) The Arkansas Public Employees' Retirement System; (B) The State Police Retirement System; (C) The Arkansas Teacher Retirement System; (D) The Arkansas State Highway Employees' Retirement System; (E) The Arkansas Judicial Retirement System; (F) An alternate retirement plan as defined in § 24-7-202; or (G) The Arkansas Local Police and Fire Retirement System, (2) Each retirement system shall be responsible financially for only that portion of the annuity based upon the credited service in the plan or system. (3)(A) The final average compensation on which benefits shall be determined shall be based on the period of total credited service for: (i) The Arkansas Public Employees' Retirement System; (ii) The State Police Retirement System; (iii) The Arkansas Teacher Retirement System; (iv) The Arkansas State Highway Employees' Retirement System; and (v) The Arkansas Local Police and Fire Retirement System, (B) Compensation for credited service in the Arkansas Judicial Retirement System or an alternate retirement plan as defined in § 24-7-202 shall not be used to determine final average compensation. (4) The final average compensation for persons receiving benefits from the Arkansas State Highway Employees' Retirement System shall be based on the final average compensation at the date of termination of employment covered by that system. (5) The benefit program to be applied to each portion of credited service shall be the benefit program in effect in each plan or system at the time of retirement. (b)(1) Upon the retirement on disability or death in service of a member of either: (A) The Arkansas Public Employees' Retirement System; (B) The Arkansas Teacher Retirement System; (C) The Arkansas State Highway Employees' Retirement System; (D) The Arkansas Judicial Retirement System; (E) The State Police Retirement System; (F) An alternate retirement plan as defined in § 24-7-202; or (G) The Arkansas Local Police and Fire Retirement System, (2) If the greatest benefit payable to a survivor is a minimum percentage of the deceased member's final pay or a minimum dollar amount, then each reciprocal system that has a minimum benefit provision in its plan shall only pay a proportionate share of the minimum amount based on the ratio of service in the system to the total service in all reciprocal systems. (3) A member who dies in service while a member of one (1) reciprocal system shall be considered as currently employed by all systems in which the member has credited service at the time of death. (4) If a member has service credit in an alternate retirement plan as defined in § 24-7-202, disability and death-in-service benefits shall be contingent on provision of those benefits having been provided by the alternate retirement plan and having been selected by the member as a benefit. (c) Any person retiring on or after July 1, 1982, with credited service in more than one (1) reciprocal system shall have his or her benefits recomputed based on the provisions of this section. (d) It is the intent of this section to provide reciprocal service credits, as provided by §§ 24-2-401 — 24-2-405, between contributory and noncontributory members of: (1) The Arkansas Public Employees' Retirement System; (2) The Arkansas Teacher Retirement System; (3) The Arkansas Judicial Retirement System; (4) The Arkansas State Highway Employees' Retirement System; (5) The State Police Retirement System; (6) An alternate retirement plan as defined in § 24-7-202; and (7) The Arkansas Local Police and Fire Retirement System. (e) A member of the Arkansas Public Employees' Retirement System who is receiving a retirement annuity from another reciprocal system as defined in subsection (d) of this section shall not be eligible to use the reciprocal provisions of this section or the reciprocal provisions of §§ 24-2-401 — 24-2-405 to determine the benefit payable by the Arkansas Public Employees' Retirement System. the amount of the member's annuity shall be based upon his or her total credited service in force at the time of the member's retirement, exclusive of any minimums. with each plan or system computing the final average compensation by the method as determined by its laws. who has credited service in more than one (1) of the plans, an annuity shall be payable based upon the member's total credited service with all systems in force at the time of retirement, with each system being responsible for the payment of such disability or death-in-service benefits as are provided by the applicable provisions of each system's laws or plan's provisions. (f)(1) A member of the Arkansas Public Employees’ Retirement System previously covered under an alternate retirement plan as defined in § 24-7-202 may be credited for each year of employment covered under the alternate retirement plan to meet eligibility requirements for receiving a monthly retirement benefit under the system if the employee did not: (A) Vest in the alternate retirement plan; and (B) Receive a payment or withdraw contributions from the alternate retirement plan for the period of covered employment. (2) The Arkansas Public Employees' Retirement System shall not credit service for retirement eligibility under this subsection until: (A) The member provides documentation to the Arkansas Public Employees' Retirement System from the covered employer and the alternate retirement plan that verifies the conditions in subdivision (f)(1) of this section; and (B) The Executive Director of the Arkansas Public Employees' Retirement System determines that there is sufficient documentation and that all other requirements are met to credit service from the alternate retirement plan.

Ark. Code Ann. § 24-4-1001 Determination of benefits for wildlife officers — Responsibility for additional costs.

(a) For purposes of determining benefits under this chapter, all credited service, whenever earned, of persons employed as wildlife officers of the Arkansas State Game and Fish Commission on July 4, 1983, and of persons thereafter employed in such positions prior to July 1, 1997, shall be treated as public safety member service. (b) The additional cost to the Arkansas Public Employees' Retirement System of this section shall be the responsibility of the commission, and the commission shall pay to the system an additional twelve percent (12%) of covered payroll at the same time as employer contributions are paid by law for other commission employees. (c) It is the specific intent of this section to provide that the twelve percent (12%) contribution referenced in subsection (b) of this section shall be in addition to those required by § 24-2-701(c). (d)(1) Any person who is covered on July 3, 1989, by a state-supported retirement system and who was a member of the system on July 4, 1983, in a position defined by the system as “public safety member” shall receive credit for public safety member service for any service as a wildlife officer with the commission, which service was rendered before July 4, 1983. (2) Provided, the additional cost to the system shall be the responsibility of the member, and the member shall pay to the system any additional cost, as computed by actuarial determination.

Ark. Code Ann. § 24-4-1002 Benefit provisions — Subjection of annuity rights to process of law.

(a) The right of a person to an annuity, to the return of accumulated contributions, the annuity itself, any annuity option, any other right accrued or accruing under the provisions of § 24-4-101 et seq., and all moneys belonging to a plan shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or any other process of law whatsoever and shall be unassignable, except as is specifically provided in this chapter. (b) An exception to the prohibition against the subjection of annuity rights to any process of law applies to the following: (1) An employer shall have the right of setoff for any claim arising from embezzlement by or fraud of a member, retirant, or beneficiary; and (2) A court of competent jurisdiction of this state may order the monthly benefit of a retirant to be paid into the registry of the court for disposition as the court deems just and proper if the retirant is found by the court to be willfully refusing or failing to support his or her minor dependent children in violation of a court order providing for such support.

Ark. Code Ann. § 24-4-1003 Benefit provisions — Inspection of records.

All records kept by an Arkansas public retirement system, whether required to be kept by law or board policy, shall be open to public inspection as provided in § 25-19-105 , except that individual member's records which are kept for the purpose of compiling information for the member's retirement or Social Security records shall not be open to the public.

Ark. Code Ann. § 24-4-1004 Determination of benefits for civilian firefighters of State Military Department or Department of the Military — Responsibility for additional costs.

(a) For purposes of determining benefits under this chapter, all credited service, whenever earned, of persons employed as civilian firefighters of the State Military Department or Department of the Military as of July 1, 1997, and of persons thereafter employed in those positions shall be treated as public safety member service if the position is one hundred percent (100%) federally funded. (b) The additional cost to the Arkansas Public Employees' Retirement System as computed by actuarial determination is the responsibility of the employer and is in addition to those costs required by § 24-2-701(c). (c) Employment as a public safety member shall be credited at one and one-half (1½) times the regular rate for crediting service. (d)(1) A public safety member who purchases military service credit under § 24-2-502 shall be credited at the regular rate for credited service and not an enhanced rate. (2) A public safety member shall pay the same rate for the purchase of service credit from the system as a member of the system who is not a public safety member.

Ark. Code Ann. § 24-4-1101 Membership.

(a) A public employee, as defined in § 24-4-101(17), first hired on or after July 1, 2005, is subject to the benefit provisions of this subchapter. (b)(1)(A) A public employee who remains an active member of the Arkansas Public Employees' Retirement System may elect coverage under the benefit provisions of this subchapter. (B) If the member elects contributory coverage, the effective date of the member's contributory coverage shall be: (i) The first payroll period that is paid and reported in the next month after the contributory election; and (ii) Prospective only. (2) A conversion or purchase of noncontributory service into contributory service under this subchapter is not allowed. (3) The election shall be made as directed by the Board of Trustees of the Arkansas Public Employees' Retirement System and is irrevocable. (c) Noncontributory members who terminate covered service for a period of more than six (6) months and subsequently return to covered service will be subject to the provisions of this subchapter.

Ark. Code Ann. § 24-4-1102 Member contributions.

(a)(1) The contributions of a member shall be five percent (5%) of the member's annual compensation and shall be placed in the member's deposit account as provided in § 24-4-401. (2) Interest shall be paid on accumulated member contributions at the rate of two percent (2%) per annum. (3) As used in this subsection, “compensation” has the same meaning as in § 24-4-101. (4)(A) Beginning July 1, 2022, and continuing each following fiscal year, the contribution rate shall be increased in increments of twenty-five hundredths of one percent (0.25%) per fiscal year. (B) An increase to the contribution rate under subdivision (a)(3)(A) of this section shall not result in a contribution rate greater than seven percent (7%). (b)(1) For purposes of deferring federal and state income tax under 26 U.S.C. § 414(h)(2), as adopted by § 26-51-414, the employer shall pick up the member's contributions to the Arkansas Public Employees' Retirement System required by this section payable on or after July 1, 2005. (2)(A) Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of salary to a member. (B) The employer shall be solely responsible for remitting member contributions to the system in a manner consistent with § 24-4-202, including without limitation compliance with deadlines and penalties. (C) A deduction shall be made from each member's salary equal to the amount of the member's contribution picked up by the employer. (D) For all other purposes, member contributions picked up by the employer shall be considered member contributions. (c) Upon termination of covered service, a former member may request a refund of the former member's accumulated contributions under § 24-4-603, except that interest will be credited on all balances for service through the last completed fiscal year as provided in § 24-4-209(a).

Ark. Code Ann. § 24-4-1103 Benefits generally.

(a)(1) Upon retirement under this subchapter, a member shall receive a straight life pension equal to two and three-hundredths percent (2.03%) of the member's final average compensation multiplied by the number of years and any fraction of a year of the member's service for each year of contributory service rendered prior to July 1, 2007. (2) For each year of contributory service in the Arkansas Public Employees' Retirement System rendered after June 30, 2007, the member shall receive two percent (2%) of the member's final average compensation multiplied by the number of years and any fraction of a year of the member's service. (3) For each year of actual service in the system in excess of twenty-eight (28) years that is rendered on or after July 1, 2009, a member shall receive a straight life annuity equal to an additional five-tenths of one percent (0.5%) of the member's final average compensation. (b) Any member may voluntarily retire upon filing a written application with the Board of Trustees of the Arkansas Public Employees' Retirement System not less than thirty (30) days nor more than ninety (90) days before the date the member desires to be retired if that member has: (1) Twenty-eight (28) or more years of credited service regardless of age; or (2)(A) Attained or attains sixty-five (65) years of age and has five (5) or more years of actual service. (B) However, a member of the General Assembly must have ten (10) or more years of actual service if the member only has service as a member of the General Assembly. (c) No temporary annuity will be provided to members covered by this subchapter. (d) The maximum benefit payable upon retirement shall be one hundred percent (100%) of the member's final average compensation without regard to any postretirement increases enacted by the General Assembly.

Ark. Code Ann. § 24-4-1104 Annuity options.

Before the date the first payment of a member's annuity is due, a member may elect to receive the annuity as a straight life annuity or as one (1) of the reduced annuity options provided in § 24-4-606 .

Ark. Code Ann. § 24-4-1105 Deferred and early annuities.

(a) Any member or former member with sufficient years of actual service to qualify for a vested termination annuity who has not attained normal retirement age may retire with an early annuity provided in § 24-4-510(a). (b) In the event a member with five (5) or more years of actual service in the Arkansas Public Employees' Retirement System ceases employment as a covered member before reaching sixty-five (65) years of age or attaining twenty-eight (28) years of service and does not withdraw his or her accumulated employee contributions to the system, the member is entitled to receive an annuity upon attainment of sixty-five (65) years of age and submission of a retirement application to the system. (c) If a former member has applied for a refund of contributions but returns to employment with a participating public employer prior to the date the refunded contributions are received, the request is void and employment must be terminated again to request a refund of contributions.

Ark. Code Ann. § 24-4-1106 Benefits — Death of retirant.

(a) In the event a retirant receiving a straight life pension dies before the retirant has received an aggregate amount of straight life pension payments equal to the accumulated contributions credited in the retirant's deposit account at the time of retirement, the difference between the accumulated contributions and the aggregate amount of straight life pension payments received by the retirant shall be paid to the named beneficiary. (b) If no designated person survives the retirant, the difference, if any, shall be paid in accordance with the laws of descent and distribution of the State of Arkansas. (c) The payments may be made directly to a curator, guardian, administrator, or executor authorized to receive the payments with or without the appointment of a representative in this state. (d) No benefits will be paid under this section if survivor benefits are otherwise payable to a named beneficiary.

Ark. Code Ann. § 24-4-1107 Redetermination of benefits.

(a) Each July 1 the Arkansas Public Employees' Retirement System shall redetermine the amount of each monthly benefit that has been payable by the system for at least twelve (12) calendar months. The redetermined amount is payable for the following twelve (12) calendar months. (b) The redetermined amount is the amount of the benefit payable as of the immediately preceding July 1 increased by three percent (3%). (c)(1) If a person is first hired by a system-covered employer on or after July 1, 2022, and retires under the eligibility requirements of the system, the monthly benefit for the person shall be redetermined in accordance with subdivision (c)(2) of this section. (2)(A) The redetermined amount for a person described in subdivision (c)(1) of this section shall be the amount of the monthly benefit otherwise payable as of the immediately preceding July 1 increased by the lesser of three percent (3%) or the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers as determined by the United States Department of Labor over the one-year period ending in the December immediately preceding the date for which the redetermined amount is being calculated. (B) The redetermined amount of the monthly benefit to be paid to the person shall not be less than the redetermined amount of the monthly benefit paid to the person in the preceding year.

Ark. Code Ann. § 24-4-1108 Benefit provisions — Death in service.

(a)(1) If an active member or former member with less than five (5) years of actual service dies while employed by a covered employer, the member's accumulated contributions and interest are refundable to the named beneficiary. (2) If no designated person survives the member, the accumulated contributions will be paid in accordance with the laws of descent and distribution of the State of Arkansas. (3) The payments may be made directly to a curator, guardian, administrator, or executor authorized to receive the payments with or without the appointment of a representative in this state. (b) If an active member or former member with five (5) or more years of actual service dies before retirement, the benefits under this section will be paid upon written application to the Board of Trustees of the Arkansas Public Employees' Retirement System as provided in § 24-4-608.

Ark. Code Ann. § 24-4-1109 Maximum benefit limitation.

(a) Benefits paid under this chapter shall not exceed the limitations of section 415 of the Internal Revenue Code that are applicable to governmental retirement plans. (b)(1) The Board of Trustees of the Arkansas Public Employees' Retirement System is authorized to promulgate all rules necessary to implement the limitations of section 415 of the Internal Revenue Code. (2) The rules adopted by the board under this section shall be amended to reflect any changes in the content or application of section 415 of the Internal Revenue Code enacted by Congress or promulgated by the Internal Revenue Service.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.24.htmlFetched: 11/8/2026