§ 24-7-607 - Private school service.
24-7-607. Private school service.
(a) As used in this section, "private school service" means service rendered in any private school or agency that is recognized by the Department of Education for the issuance of teaching licenses.
(b) From and after January 1, 1990, an active member shall be eligible, upon application, to purchase private school service to be credited as service under this subchapter in accordance with the following conditions:
(1) The private school service credit to be granted shall be limited to service for which no benefit could be paid by another system similar in purpose to the Arkansas Teacher Retirement System, except social security, if the member left on deposit his or her contributions to the other system, and it shall be limited to fifteen (15) years;
(2) (A) The member shall pay to the system for each year of service credit being granted:
(i) The product of the sum of the employee and employer contribution rates in effect at the time of purchase multiplied by the greater of:
(a) 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
(b) The average of the three (3) highest salaries earned at the time of purchase; plus
(ii) Interest from the end of that year of credited service to the date of payment in full.
(B) 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.
(C) 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 private school service shall not become credited service under this system until:
(A) The member payments specified in subdivision (b)(2) of this section have been paid in full; and
(B) (i) The member has established five (5) or more years of actual service exclusive of private school service.
(ii) Should a member cease to be an active member before the private school service has been established as system-credited service, the member payments contributed as specified in subdivision (b)(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.
(c) An active member may purchase a fraction of a year of private school service to be credited as service under this subchapter in the same manner as provided for private school service under subsection (b) of this section if the service meets the following requirements:
(1) The member has not less than thirty (30) days of private school service in a fiscal year; and
(2) The fraction of a year of private school service may be credited in keeping with policies as provided by 24-7-601.