§ 24-7-603 - Out-of-state service.
24-7-603. Out-of-state service.
(a) As used in this section, "out-of-state service" means service rendered in any state except Arkansas in a position that would have been covered by the Arkansas Teacher Retirement System had the service been actual service covered by the system if rendered in the state.
(b) Out-of-state service purchased before July 1, 1987, shall be credited as service under this section in accordance with provisions in force before July 1, 1987.
(c) From and after July 1, 1987, an active member shall be eligible to purchase out-of-state service to be credited as service under this subchapter in accordance with the following conditions:
(1) (A) The out-of-state service credit to be granted shall be limited to service for which no benefit could be paid by another system similar in purpose to this system, except social security, if the member had left on deposit his or her contributions to the other system.
(B) The credit under subdivision (c)(1)(A) of this section is limited to fifteen (15) years;
(2) (A) (i) The member shall pay to the system for each year of service credit being granted:
(a) The product of the sum of the employee and employer contribution rates in effect at the time of purchase multiplied by the greater of:
(1) The annual salary received by the member for his or her first full year of credited service that precedes the fiscal year in which the service is purchased; or
(2) The average of the three (3) highest salaries earned at the time of purchase; plus
(b) Interest from the end of that year of credited service to the date of payment in full.
(ii) If the payment is not made in a single sum at the time of purchase, interest shall be added from the date of the initial payment to the date of payment in full.
(B) The payment shall be credited to the member's account in the members' deposit account and shall be in addition to regular member contributions thereto;
(3) The out-of-state service shall not become credited service under this system until:
(A) The member payments specified in subdivision (c)(2) of this section have been paid in full; and
(B) (i) The member has established five (5) or more years of actual service.
(ii) Should a member cease to be an active member before the out-of-state service has been established as system-credited service, the member payments contributed as specified in subdivision (c)(2) of this section shall be refundable;
(4) The benefit program to be applied to each year of service credit being granted shall be the benefit program in effect at the time of retirement; and
(5) Such other rules and regulations consistent with this subchapter as the Board of Trustees of the Arkansas Teacher Retirement System may from time to time adopt.
(d) An active member may purchase a fraction of a year of out-of-state service to be credited as service under this subchapter in the same manner as provided for out-of-state service under subsection (c) of this section if the service meets the following requirements:
(1) The member has not less than thirty (30) days of out-of-state credited service in the fiscal year; and
(2) The fraction of a year of out-of-state service may be credited in keeping with policies of the board as provided by 24-7-601.
(e) An active member shall be eligible, upon application, to purchase service rendered outside the state during a period of employment with an education coordinating council to be credited as out-of-state service under the provisions of this section, provided that the conditions of subsection (c) of this section are met.