088.00.21 Ark. Code R. § 007 - ATRS Rule 6 Membership

ATRS RULE 6

MEMBERSHIP AND EMPLOYER PARTICIPATION

Arkansas Code §§ 24-2-202, 24-2-401 - 24-2-408, 24-7-202, 24-7-406, 24-7-501, 24-7-502, and 24-7-1601 - 24-7-1607

I. Definitions

a. "Administrator" means:

1. An employee of a covered employer in one (1) of the following positions:

A. Public school superintendent, assistant superintendent, principal, or vice principal;

B. A higher education president, chancellor, or director;

C. A community college, vocational or technical school, or educational cooperative director, president, or vice president; or

2. An employee of an education-related agency participating in the Arkansas Teacher Retirement System (ATRS) who is an active member employed in a GS13 grade position, its equivalent, or above;

b. "Contributory service" means service on which a member makes or made member contributions to ATRS;

c. "Contributory election" means a member's written election to make member contributions to ATRS;

d. "Noncontributory service" means service on which a member does not make member contributions to ATRS and for which the member accepts a reduced retirement annuity for the member's years of noncontributory service;

e. "Nonteacher" means a member who is not a teacher or administrator;

f. "Organization" means:

1. A private entity that:

A. Provides services for a public school district; and

B. Has employees who were previously employed by the public school district and members of ATRS; or

2. An educational nonprofit corporation licensed and regulated by the Division of Developmental Disabilities Services of the Department of Human Services;

g. "Preceding System" means a previous reciprocal retirement system of record;

h. "Post-secondary higher education plan" or "PSHE plan" means a plan establishing the right of a new employee of a post-secondary or higher education employer to participate in ATRS on or after July 1, 2011;

i. "Reciprocal System" means:

1. ATRS operations as of June 30, 1957, and continued by statutes;

2. The Arkansas State Highway Employees' Retirement System (ASHERS), established by Arkansas Code § 24-5-103;

3. The Arkansas Public Employees' Retirement System (APERS) established by Arkansas Code § 24-4-103;

4. The Arkansas State Police Retirement System (ASPRS) established by Arkansas Code § 24-6-203;

5. The Arkansas Judicial Retirement System (AJRS) established by Arkansas Code § 24-8-201;

6. The Arkansas District Judge Retirement System (ADJRS) established by Arkansas Code §§ 24-8-801 [repealed] 24-8-824 [repealed];

7. The Arkansas Local Police and Fire Retirement System (ALOPFI) provided for under Arkansas Code § 24-10-101; or

8. An alternate retirement plan for:

A. A college, university, or the Division of Higher Education provided for under Arkansas Code § 24-7-801 et seq.;

B. A vocational-technical school or the Division of Career and Technical Education, the Adult Education Section of the Division of Workforce Services, the Division of Higher Education, and the Office of Skills Development provided for under Arkansas Code § 24-7-901 et seq.; or

C. An agency that may be assigned the duties under one (1) or more of the agencies listed in this ATRS Rule 6 I.i.1- 8 through a state reorganization or transformation plan;

j. "State Employer" means:

1. A public employer whose employees are covered under the:

A. ATRS;

B. ASHERS (Arkansas Code § 24-5-103) ;

C. APERS (Arkansas Code § 24-4-103) ;

D. ASPRS (Arkansas Code § 24-6-203) ;

E. AJRS (Arkansas Code § 24-8-201) ; or

F. ADJRS (Arkansas Code §§ 24-8-801 [repealed] - 24-8-824 [repealed]); or

2. A public employer that is:

A. A college, university, or the Division of Higher Education whose employees are covered by an alternate retirement plan provided for under Arkansas Code § 24-7-801 et seq.;

B. A vocational-technical school of the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development, whose employees are covered by an alternate retirement plan provided for under Arkansas Code § 24-7-901 et seq.; or

C. An agency that may be assigned the duties of one (1) or more of the agencies listed in this ATRS Rule 6 I.j.1. and 2. through a state reorganization or transformation plan;

k. "Succeeding System" means the current reciprocal retirement system of record that follows a person's membership in a preceding retirement system; and

l. "Teacher" means a person employed by a school for the purpose of giving instruction and whose employment requires state teaching licensure.

II. Membership and Employer Participation Rules

a. Employee Membership in Another State Retirement System

1. Excluding service as a member of the General Assembly, an employee who is eligible for membership in ATRS is ineligible for membership in another state retirement system while he or she is employed in a position covered by ATRS.

b. Erroneous Membership of Employees

1. Erroneous Enrollment Before January 1, 1979 - Employees

A. An employee who was erroneously enrolled in ATRS before January 1, 1979, shall continue to be a member of ATRS if the employee's contributions were not refunded before July 1, 1979.

B. The employee shall:

i. Receive service credit for all paid membership service in ATRS and any free service creditable under Acts 1973, No. 427 as amended; and

ii. Be entitled to reciprocal service credit as provided by Arkansas Code §§ 24-7-401 - 24-7-408.

2. Erroneous Enrollment on or after January 1, 1979 - Employees

A. An employee who is erroneously enrolled in a state retirement system on or after January 1, 1979, may:

i. Elect to remain a member of the system of record; or

ii. Become a member of the eligible retirement system.

3. Correction of Erroneous Enrollment Occurring Before January 1, 1979 - ATRS Obligations

A. Effective July 1, 1979, ATRS shall not:

i. Be required to correct the state retirement system membership of an employee who was erroneously enrolled in another state retirement system before January 1, 1979; and

ii. Accept an employee who was erroneously enrolled in another state retirement system before January 1, 1979, as a member of ATRS unless the employee's contributions were refunded before July 1, 1979.

4. Correction of Erroneous Enrollment Occurring on or after January 1, 1979 - ATRS Obligations

A. If ATRS discovers that an employee is erroneously enrolled in a state retirement system on or after January 1, 1979, ATRS shall notify both the covered employer and employee that the:

i. Employee is erroneously enrolled in the state retirement system; and

ii. Error may be corrected as provided by Acts 1991, No. 13 or Arkansas Code § 24-2-302 et seq.

c. Employee Membership Eligibility - School Janitors, Bus Drivers, and Cafeteria Workers Employed Before July 1, 1989

1. An employee shall continue to be a member of APERS if the employee:

A. Was employed before July 1, 1989, as a school janitor, bus driver, or cafeteria worker;

B. Was enrolled in APERS under the provision of Acts 1965, No. 63;

C. Was promoted to a position of school maintenance worker or supervisor, bus mechanic or transportation supervisor, or cafeteria manager, respectively; and

D. Remains employed in the position to which he or she was promoted.

d. Employee Membership Eligibility - Nonteaching Service Employees

1. Effective July 1, 2001, an employee whose nonteaching service began before July 1, 1989, and is covered or coverable by APERS may elect to be covered by ATRS.

2. An employee shall submit his or her election to be covered by ATRS before May 31 on a form provided by ATRS.

3. An employee's timely submitted election to be covered by ATRS is effective on July 1 of the following year. (Arkansas Code § 24-7-501(a)(2)(C))

e. Employee Membership Eligibility - College Plans

1. Employees of Nonmandatory Employers

A. A member of ATRS who was employed by a nonmandatory employer before July 1, 2011, may continue to participate in ATRS instead of an alternative program offered by the nonmandatory employer if the member continues providing consistent service to the nonmandatory employer.

B. A nonmandatory employer shall be considered a post-secondary or higher education employer (PSHE employer) if the nonmandatory employer enrolls a new eligible member with ATRS on or after July 1, 2011.

C. If an eligible nonmandatory employer college elects to offer ATRS participation to its employees, the nonmandatory employer shall report information regularly to ATRS, on forms approved by ATRS, as required or permitted by the law applicable to ATRS.

2. Employees of PSHE Employers

A. A PSHE employer may elect to offer ATRS participation to its employees by fulfilling the requirements of Arkansas Code § 24-7-1605.

B. In addition to standard ATRS reporting forms, a PSHE Employer shall provide supplemental reports on any form required, approved, and adopted by the Board.

3. PSHE Employees Hired After July 1, 2011

A. The participation of new employees hired by a PSHE employer after July 1, 2011, is governed by Arkansas Code § 24-7-1601 et seq.

B. An employee of a PSHE employer who is hired after July 1, 2011, may participate in a PSHE plan if the employee:

i. Is benefits-eligible as determined by the PSHE employer;

ii. Is a vested member of ATRS at the time of initial employment;

iii. Is not a vested member of ATRS, but meets the requirements of a less restrictive PSHE plan adopted by the specific PSHE employer; and

iv. Signs an irrevocable PSHE plan participation form provided by ATRS

C. A PSHE plan employee shall remain a member of ATRS as long as he or she is employed by a PSHE employer.

D. A PSHE plan employee's election to participate in ATRS is irrevocable unless the PSHE plan employee obtains a termination refund from ATRS after his or her election to participate.

f. Employer Participation in ATRS

1. Executive Director Review of Employer Participation

A. This ATRS Rule 6 II.f.1. applies to an employer that participates in ATRS under the provisions of Arkansas Code § 24-7-202(D), (E), or (F).

B. Every five (5) years from the effective start date of an employer's participation in ATRS, the Executive Director of ATRS (executive director) shall review the employer's participation in ATRS to ensure that the employer meets both federal and state requirements for participation and continued participation in ATRS.

C. If the executive director determines that an employer no longer meets the requirements for continued participation in ATRS, the executive director shall notify the Board of Trustees of the Arkansas Teachers Retirement System (Board) to allow appropriate review and action by the Board.

2. Application for Employer Participation

A. An employer that would prefer to participate in and have its employees become members of ATRS may submit a written application to the executive director.

B. The application shall:

i. Specify a proposed effective date for participation in ATRS; and

ii. Include the following information and materials:

a. A certified copy of the articles of incorporation, bylaws, and other organizational documents of employer;

b. A copy of the employer's:

1. Most recent three (3) years' annual financial statements, including balance sheet, financial statements, and statement of cash flows; or

2. If the employer does not have audited financial statements, the year-end compilation reports or internal balance sheet and income statements for the employer;

c. A copy of the employer's most recent three (3) years' federal and state income tax returns;

d. A description of the employer's sources of funding, including the percentage of the funds that is provided by federal or state government and the type of government funding provided;

e. A description of how the employer's board of directors or board of trustees is selected and whether any governmental agency has input in the selection of the board members;

f. A description of the types of services provided by the employer; and

g. A description of each government agency that would be responsible for providing the types of services provided by the employer if the employer did not provide the services.

C. After ATRS reviews the employer's application and accompanying information and materials, ATRS shall:

i. Determine whether an Internal Revenue Service ruling (IRS Ruling) should be requested concerning whether or not the participation of the employees of the employer jeopardizes ATRS' status as a governmental plan; and

ii. Request any necessary additional information and statements from the employer if ATRS determines that an IRS Ruling should be requested.

D. The employer shall provide ATRS with any additional information and statements requested by ATRS in relation to the IRS Ruling.

E. The employer shall pay ATRS three thousand dollars ($3,000) or the actual cost for fees and costs associated with obtaining the IRS Ruling if ATRS determines that an IRS Ruling should be requested.

F. The Board shall consider and vote on an application for employer participation.

i. When considering an application for employer participation, the Board:

a. Shall consider any relevant constitutional arguments brought to the attention of the executive director concerning the employer's application for employer participation;

b. Shall consider Rev. Rul. 89-49; and

c. May consider any other relevant rulings issued by the Internal Revenue Service or the Department of Labor.

3. Employer Participation - Education- Related Agency or Organization

A. Pursuant to Arkansas Code § 24-7-202(19)(D), an individual may be eligible to become a member of ATRS if the:

i. Individual is employed in a position with an education-related agency or organization;

ii. Individual's employment is related to:

a. Training public school employees or school board members;

b. Teaching public school students; or

c. Adult education programs;

iii. Individual's employment is unrelated to private schools;

iv. Individual is or has been a member of ATRS for a minimum of five (5) years; and

v. Individual elects to become or remain a member of ATRS.

B. A member described in this ATRS Rule 6.II.f.3 may become a member of ATRS if the:

i. Board determines, pursuant to rules adopted by the Board, that the participation of employees employed by the education-related agency or organization will not:

a. Impair ATRS' legal status, including:

1. ATRS' tax-qualified and governmental plan status under the Internal Revenue Code, 26 U.S.C. § 1 et seq.; and

2. ATRS' governmental plan status under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.;

b. Subject ATRS to additional federal requirements;

c. Have a substantial adverse impact on ATRS' actuarial soundness; and

ii. Education-related agency or organization:

a. Elects to participate in ATRS;

b. Assumes responsibility for employer contributions;

c. Assumes responsibility for fees for obtaining IRS Rulings or Employee Retirement Income Security Act of 1974 opinions; and

d. Is approved as a covered employer by the Board according to rules adopted by the Board.

4. Employer Participation - Private Provider Employees

A. Pursuant to Arkansas Code § 24-7-202(19)(E), effective July 1, 1997, if a public school district privatizes any of its services, an individual who is or was employed by the public school district in one (1) or more of the privatized services and who is or has been a member of ATRS may elect to remain a member of ATRS if the:

i. Board determines, pursuant to rules adopted by the Board, that the participation of employees described in this ATRS Rule 6.II.f.4. will not:

a. Impair ATRS' legal status, including:

1. ATRS' tax-qualified and governmental plan status under the Internal Revenue Code, 26 U.S.C. § 1 et seq.; and

2. ATRS' governmental plan status under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.;

ii. Subject ATRS to additional federal requirements;

iii. Have a substantial adverse impact on ATRS' actuarial soundness; and

iv. Private provider assumes responsibility for:

a. Required employer contributions; and

b. Fees for obtaining IRS Rulings or Employee Retirement Income Security Act of 1974 opinions.

5. Employer Participation - Nonprofit Corporation Employees

A. Pursuant to Arkansas Code § 24-7-202(19)(F), effective July 1, 1997, an individual who meets the following requirements may be eligible to become a member of ATRS:

i. The individual is employed in a position with an educational nonprofit corporation that is licensed and regulated by the Division of Developmental Disabilities Services of the Department of Human Services;

ii. The individual's employment is related to:

a. Training public school employees or school board members;

b. Teaching public school students; or

c. Adult education programs; and

iii. The individual's employment is unrelated to private schools.

B. A member described in this ATRS Rule 6.II.f.5 may become a member of ATRS if the:

i. Board determines, pursuant to rules adopted by the Board, that the participation of employees employed by the educational nonprofit corporation will not:

a. Impair ATRS' legal status, including:

1. ATRS' tax-qualified and governmental plan status under the Internal Revenue Code, 26 U.S.C. § 1 et seq.; and

2. ATRS' governmental plan status under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.;

b. Subject ATRS to additional federal requirements;

c. Have a substantial adverse impact on ATRS' actuarial soundness; and

ii. Nonprofit corporation:

a. Elects to participate in ATRS;

b. Assumes responsibility for employer contributions;

c. Assumes responsibility for fees for obtaining IRS Rulings or Employee Retirement Income Security Act of 1974 opinions; and

d. Is approved as a covered employer by the Board according to rules adopted by the Board.

III. Contributory Election

a. Contributory Election - Generally

1. The year in which a person becomes a member of ATRS shall determine whether or not the person is considered a contributory or noncontributory member of ATRS.

2. A member's contributory status is irrevocable once the member becomes a contributory member of ATRS.

3. All service rendered before July 1, 1986, is contributory service.

4. A contributory member shall not elect to become a noncontributory member.

5. A contributory election is valid if the contributory election is:

A. Made on an election form provided by ATRS; and

B. Signed by both the member and the covered employer.

6. If a member makes a contributory election before the preparation of his or her first salary payment in the fiscal year, the contributory election is effective immediately.

7. If a member makes a contributory election after the preparation of his or her first salary payment in the fiscal year, the contributory election is effective July 1 of the next fiscal year.

b. Contributory Election - Member Contracts

1. Members Not Under Contract

A. A member who is not under contract may make a contributory election.

2. Members Under Contract

A. A member under contract for one hundred eighty-five (185) days or more shall make contributions to ATRS.

B. A member under contract for one hundred eighty-four (184) days or less may make a contributory election.

3. Contributory Elections Based on Status Change from Nonteacher to Teacher or Administrator Under Contract

A. Regardless of a member's earlier noncontributory election, an active member whose status changes from nonteacher to teacher or administrator under contract for one hundred eighty-five days (185) or more shall make member contributions to ATRS.

B. An active member's change from noncontributory status to contributory status due to the status change described in this ATRS Rule III.b.3.A is effective on the first day of the next fiscal year if the active member:

i. Changes status from nonteacher to teacher or administrator during a year in which the active member's service has already been reported as noncontributory; and

ii. Is under contract for one hundred eighty-five (185) days or more.

c. Contributory Election - Noncontributory Members

1. A noncontributory member may make a contributory election.

2. If a noncontributory member makes a contributory election before the preparation of the first salary payment to the noncontributory member in the fiscal year, the contributory election is effective immediately.

3. If a noncontributory member makes a contributory election after the preparation of the first payroll containing the first salary payment to the noncontributory member in the fiscal year, the contributory election is effective July 1 of the next fiscal year.

4. All service rendered after a contributory election is filed with ATRS shall be contributory.

5. A noncontributory member's contributory election that is filed with ATRS is irrevocable.

d. Contributory Election - Noncontributory Inactive Members and Rescinding Retirees

1. Previously Contributory Inactive Members

A. An inactive member shall make contributions on his or her full salary if the inactive member:

i. Was contributory and earned a maximum salary of seven thousand eight hundred dollars ($7,800); and

ii. Returns to work on or after July 1, 1995.

2. Previously Noncontributory Inactive Members and Retirees

A. An inactive member or rescinding retiree may make a contributory election if the inactive member or rescinding retiree:

i. Was noncontributory; and

ii. Reenters ATRS after June 30, 2007.

B. If the inactive member or rescinding retiree does not make a contributory election, the inactive member or rescinding retiree shall be enrolled in the plan that he or she was enrolled in before reentering ATRS.

e. Contributory Election - State Agency Employees

1. Full-time Employees

A. A full-time employee of a state agency covered by ATRS shall be contributory.

2. Part-time Employees

A. A part-time employee of a state agency covered by ATRS shall be noncontributory.

B. A part-time employee of a state agency covered by ATRS may make a contributory election.

f. Contributory Election - Employer Reporting Errors

1. Inactive Members

A. ATRS shall consider a member as noncontributory if the member:

i. Was an inactive member who returned to covered employment as an active member after July 1, 1999;

ii. Is reported incorrectly as noncontributory by his or her covered employer for his or her first year of service with the covered employer.

B. ATRS shall notify the covered employer of the member's contributory status.

C. Effective the next July 1, the member shall make contributions to ATRS.

2. New Members

A. ATRS shall consider a member as noncontributory for his or her first year of service with a covered employer if the member is a new member of ATRS and incorrectly reported as noncontributory by his or her covered employer for the first year.

B. ATRS shall notify the covered employer of the member's contributory status.

C. Effective the next July 1, the member shall make contributions to ATRS and the covered employer shall correctly report the member as contributory.

IV. Confidentiality of Member Accounts

a. In compliance with the ATRS Code of Ethics, ATRS shall keep each member's salary, employment history, retirement account, and other personal data or other information compiled by ATRS for purposes of establishing and maintaining the member's retirement account confidential.

b. Disclosure

1. All member information compiled by ATRS for the purpose of establishing and maintaining the member's retirement account shall not be disclosed to a third-party unless:

A. The member provides ATRS with his or her written consent; or

B. A valid legal process requires the disclosure of the member's information.

2. Individual member records that are kept for the purpose of compiling information for a member's retirement or Social Security records shall not be open to the public under Arkansas Code § 24-4-1003.

V. Reciprocal Service Credit

a. Generally

1. A member who leaves a position covered by ATRS, becomes employed by a reciprocal system, and files a reciprocal service agreement shall become an inactive member of ATRS and may be eligible for an annuity benefit according to the annuity benefit formula in effect at the time of the member's effective retirement date.

2. Minimum benefits under Acts 1965, No. 488, Arkansas Code § 24-2-402(5)(E), as amended, for reciprocal service shall not apply unless a member has five (5) or more years of credited service in ATRS.

3. If ATRS is a member's preceding system, ATRS shall not pay annuity benefits to the member under reciprocity unless the member:

A. Attains the normal retirement age; or

B. Leaves his or her employment with his or her state employer.

4. If ATRS is a member's preceding system, the member, after attaining the normal retirement age, is eligible to apply for retirement benefits without leaving his or her employment with his or her last state employer.

5. The member's annuity benefit payments shall begin after the member attains the normal age of retirement or on the first day of the month following the month in which the member's application is filed, whichever occurs last.

6. ATRS shall only consider service credited to the member and salaries earned by the member before the member's effective retirement date to calculate the member's annuity benefit.

b. Reciprocal Service Credit - Calculation of Service Credit

1. If a member of ATRS has service credited during the same fiscal year with another reciprocal system and the combined service is greater than one (1) year of service credit, ATRS shall credit service as follows:

A. If credit by the reciprocal system is less than three (3) months, ATRS shall credit service for one (1) year;

B. If credit by the reciprocal system is three (3) or more months but less than six (6) months, ATRS shall credit service for three-fourths (3/4) year;

C. If credit by the reciprocal system is six (6) or more months but less than nine (9) months, ATRS shall credit service for one-half (1/2) year; and

D. If credit by the reciprocal system is for nine (9) months but less than twelve (12) months, ATRS shall credit service for one-fourth (1/4) year.

c. Reciprocal Service Credit - Contributions and Repayments

1. While an employee participates in a reciprocal system, back contributions, additional contributions, and repayment of refund payments made to ATRS shall be made in accordance with the payment method provisions of ATRS Rule 8.

2. Employer pick-up is prohibited while the employee works for a noncovered ATRS employer.

d. Reciprocal Service Credit - Concurrent Service

1. Unless the reciprocal system is APERS or an alternate retirement plan, beginning July 1, 2013, ATRS shall allow a member who earns concurrent service in both ATRS and a reciprocal system to receive full service credit in ATRS without reduction of service credit due to the concurrent service.

2. ATRS shall not recognize concurrent service added to a member's credited service in ATRS that, for the purpose of vesting, retirement eligibility, or calculating final average salary, either:

A. Credits the member with more than one (1) year of credited service for a fiscal year; or

B. Combines salary earned in ATRS and a reciprocal system in a fiscal year.

3. A member may waive all or part of the concurrent service credited to him or her in ATRS and have the concurrent service credited to him or her under a reciprocal system if:

A. The member acknowledges that the waiver is a voluntary surrender of the member's concurrent service credit in ATRS;

B. The member acknowledges that the waiver cancels his or her concurrent service credit in ATRS; and

C. The member submits an ATRS approved concurrent service credit waiver form to ATRS. (Arkansas Code § 24-7-601) .

4. If a member waives all or part of the concurrent service credited to him or her in ATRS and has the concurrent service credited to him or her under a reciprocal system, ATRS may refund the employer-accrued contributions and employee-accrued contributions.

e. Reciprocal Service Credit - Alternate Reciprocal Retirement System

1. A member of ATRS may establish reciprocal service credit from an alternate retirement plan if he or she submits an appropriate, approved, and completed ATRS form concerning the reciprocal service credit to ATRS.

2. Distributions from an alternate retirement plan may prevent reciprocal service from being established if ATRS is unable to verify that the withdrawals were made without penalty under Internal Revenue Service guidelines concerning rollovers to eligible plans, withdrawals, that are not subject to early withdrawal, etc.

f. Reciprocal Service Credit - Active Members of APERS

1. From July 1, 1991, until December 31, 1991, an active member of APERS may establish reciprocity between APERS and ATRS and purchase out-ofstate service rendered before January 1, 1978, in accordance with Arkansas Code §§ 24-7-601 and 24-7-603, if the active member:

A. Was an active member of ATRS before January 1, 1978; and

B. Became a member of APERS within thirty (30) days of leaving ATRS.

g. Reciprocal Service Credit - Arkansas Rehabilitation Services Employees

1. Effective July 1, 1993, for a ninety (90) day period, an employee of the Arkansas Rehabilitation Services may transfer his or her membership from APERS to ATRS under Acts 1993, No. 574.

2. An employee who transfers his or her membership from APERS to ATRS shall establish reciprocity between the two (2) systems and Acts 1977, No. 793 shall not apply to the employee.

h. Reciprocal Service Credit - Department of Human Services Employees

1. The law applicable to ATRS shall be used to determine the annuity benefits to which an employee is entitled for service provided before or after Acts 1977, No. 793 if the employee:

A. Was an employee of the Department of Human Services and became a member of APERS under the provisions of Acts 1977, No. 793, as amended; and

B. Left employment with the Department of Human Services and became employed in a position covered by ATRS.

2. A member meeting the description of this ATRS Rule 6 V.H.1. may establish reciprocity under Acts 1965, No. 488, as amended.

i. Reciprocal Service Credit - Member Entitlement to Deferred Annuity

1. Pursuant to Arkansas Code § 24-4-401 et seq., a member is entitled to a deferred annuity benefit if the member:

A. Leaves his or her state employment in a position that is covered by one (1) of the reciprocal systems; and

B. Enters subsequent state employment in a position that is covered by another of the reciprocal systems.

j. Reciprocal Service Credit - Age and Service Retirement

1. Annuity Benefit Payments

A. If ATRS is a member's preceding system, the member's annuity benefit payments shall begin after the member attains the normal age of retirement or on the first day of the month following the month in which the member's retirement application was filed, whichever is later.

B. If the member has combined service of at least twenty-five (25) years, the normal retirement age requirement shall not apply.

C. Deferred annuity benefit payments to the member shall not begin before the date on which the member leaves employment with his or her last state employer unless the member attains the normal retirement age.

2. Applying for Retirement Benefits Before Leaving Employment

A. If ATRS is member's preceding system, the member is eligible to apply for retirement benefits without leaving employment with his or her last state employer upon attaining the normal retirement age.

B. The member's annuity benefit payments shall begin after the member attains the normal retirement age or on the first day of the month following the month in which the member's retirement application is filed, whichever is later.

C. ATRS shall use only service credited to the member and salaries earned by the member before the member's effective retirement date to calculate the member's annuity benefit.

k. Reciprocal Service Credit - Disability Retirement

1. A member is eligible to apply for disability retirement benefits from each reciprocal system in which the member has credited service according to the rules for eligibility promulgated by that reciprocal system. (Arkansas Code § 24-2-405)

2. The member's disability retirement benefits payable by the preceding reciprocal system shall:

A. Begin the first day of the month following the month in which the member's disability retirement application is filed with the preceding system; and

B. Not begin before the date on which the member leaves employment with his or her last state employer.

l. Reciprocal Service Credit - Survivor Annuity Benefits

1. If survivor annuity benefits are payable by more than one (1) reciprocal system to an eligible survivor of a deceased member, a survivor who receives annuity benefit payments shall not receive, as a percentage of the deceased member's final salary or as a minimum dollar amount, more than the largest amount payable by a single reciprocal system.

2. ATRS shall prorate minimum benefits payable to a survivor with other reciprocal systems that have a minimum benefit provision in their plans.

3. Each reciprocal system shall pay a proportionate share of the minimum benefit based on the ratio of the member's service in that reciprocal system to the member's total service in all the reciprocal systems.

4. If the reciprocal system is an alternate retirement plan, survivor annuity benefits shall be contingent on whether the:

A. Alternate retirement plan provides survivor annuity benefits; and

B. Member selected survivor annuity benefits as a benefit under the alternate retirement plan. (Arkansas Code § 24-2-402(5)) .

VI. Contributory and Noncontributory Service Chart by Year of Entry into System

(Elections and Re-entry may affect Individual Member Service Status)

All Members
1937 - 1986	All Members	Contributory
1986 - 1991	All Members	Contributory unless elect Noncontributory
1991 - 1999	All Members	Noncontributory unless elect Contributory
School District Employees
1999 - 2007	Active	One-time election to be Contributory or Noncontributory, no election made by 7/1/2000, status on 6/30/2000
	Inactive	One-time election to be Contributory or Noncontributory upon reentering system, no election then enrolled in the plan that he or she was enrolled in before reentering ATRS
	New	Contract one hundred eighty-one (181) days or more - Contributory - Contract one hundred eighty (180) days or less -Noncontributory, may elect Contributory, election must be made one (1) year from hire date - No contract, member must be noncontributory
2005 - 2021	Nonteacher to Teacher or Administrator	Contract one hundred eighty-one (181) days or more - Contributory. If position change happens during the year, election is effective first of next fiscal year - All Noncontributory members may elect Contributory
2007 - 2021	All Members	May elect Contributory
	New	Contract one hundred eighty-one (181) days or more - Contributory - Contract 180 days or less - * Noncontributory, may elect Contributory * No contract - Noncontributory, may elect Contributory
	Inactive	May elect Contributory
2021	Nonteacher to Teacher or Administrator	Contract one hundred eighty-five (185) days or more - Contributory. If position change happens during the year, election is effective first of next fiscal year. All Noncontributory members may elect Contributory
2021 -	All Members	May elect Contributory
	A member with A member with New	Contract one hundred eighty-five (185) days or more - Contributory Contract one hundred eight-four (184) days or less - Noncontributory, may elect Contributory No contract - Noncontributory, may elect Contributory unless already Contributory
	Inactive	May elect Contributory
State Agency Employees
1999 - 2007	Full-Time Employment	Must be Contributory
	Part-Time Employment	Must be Noncontributory
2007 -	Full-Time Employment	Must be Contributory
	Part-Time Employment	Noncontributory, may elect to be Contributory

Notes

088.00.21 Ark. Code R. § 007

Adopted by Arkansas Register Volume 47 Number 05, Effective 5/20/2022