Ark. Code Ann. § 24-7-406 — AR Code / Title 24 / Chapter 7 / Subchapter 4 / Section 24-7-406
Retirement fund assets accounts - Members' deposit account - Contributions
Status: in_force

(a) (1) The members' deposit account is the account: (A) In which member contributions are accumulated; (B) From which member refunds of contributions are paid; and (C) From which transfers are made as provided in this act. (2) Employer contributions that are paid by an employee instead of an employer shall be: (A) Credited to the members' deposit account; and (B) Subject to refund under the same conditions that regular member contributions are refunded. (3) In the event survivor benefits become payable on account of the death of a member, his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred to the survivor benefit account. (b) (1) Except as provided otherwise in this section, the contributions of a member to the Arkansas Teacher Retirement System shall be the amounts set forth in this subsection. (2) (A) Each member who first became a member July 1, 1971, or later shall contribute to the system six percent (6%) of his or her salary for all salary earned on or before June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member July 1, 1971, or later shall contribute to the system the percentage of his or her salary set by the Board of Trustees of the Arkansas Teacher Retirement System under subdivision (b)(8) of this section. (3) Member contributions before July 1, 1969, shall be in accordance with provisions in force before July 1, 1969. (4) (A) For each member who first became a member before July 1, 1971, member contributions for the period after June 30, 1969, shall be six percent (6%) of the first seven thousand eight hundred dollars ($7,800) of his or her annual salary through June 30, 2013, unless he or she shall have elected, in accordance with rules and regulations established by the Board of Trustees of the Arkansas Teacher Retirement System, to contribute six percent (6%) of his or her full salary for the period after June 30, 1969, through June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member before July 1, 1971, shall contribute to the system the percentage of salary set by the board under subdivision (b)(8) of this section on the first seven thousand eight hundred dollars ($7,800) of his or her annual salary unless he or she elects to contribute a percentage of his or her entire salary, in accordance with the rules established by the board. (C) If the election is made before July 1, 1984, the member shall contribute to the system the difference between full salary member contributions and member contributions based on seven thousand eight hundred dollars ($7,800) annual covered salary retroactive to July 1, 1969, or to the actual date of employment, whichever is later, by paying the actuarial equivalent of the member's benefits to the system. (D) If the election is made July 1, 1984, or later, the member shall contribute to the system both the added member contributions and the added employer contributions that would have been paid to the system if the member's full salary always had been covered by paying the actuarial equivalent of the member's benefits to the system. (E) The interest and added employer contributions shall be considered member contributions for purposes of the system. However, any former active member who returns to covered employment on or after July 1, 1995, and who elects to make contributions to the system, shall contribute on his or her full salary. (5) Members who leave covered employment and who had annual compensation of seven thousand eight hundred dollars ($7,800) or less shall have, upon their return to covered employment, full salary considered for purposes of the system. (6) Contributions shall be required on all salary earned in covered employment during the fiscal year in which membership begins. (7) The member contribution rate shall be six percent (6%) unless increased by the board. (8) (A) Subject to the limitations under subdivision (b)(8)(D) of this section, the board may set the member contribution rate at no less than six percent (6%) and may increase the member contribution rate to maintain actuarial soundness. (B) An increase or decrease in a member contribution rate shall: (i) Apply to a complete fiscal year; and (ii) Remain in effect until modified by the board. (C) The board may adopt a change in the member contribution rate by resolution at any board meeting to apply to subsequent fiscal years until changed. (D) The board shall not increase the member contribution rate unless the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that an increase in the member contribution rate is prudent to maintain actuarial soundness. (c) (1) (A) Each employer shall deduct the member contributions provided for in this section from the salary of each member on every payroll, for every payroll period, from the date of his or her entrance into the system until the member retires or terminates, and the employer shall remit the contributions to the system. (B) (i) If the employer fails to report the required service or salary of a member and remit the contributions to the system, the system shall have the right to collect from the member and the employer the contributions due, if any, from each, together with interest beginning with the subsequent fiscal year after the contributions are due. (ii) A member shall not be given credit for service rendered until all member contributions and interest on the unreported service are paid in full or the service is converted to noncontributory service credit under § 24-7-205(b)(1)(C) . (2) The member's contributions provided for in this section shall be made notwithstanding that the minimum salary provided by law for any member shall be thereby changed. (3) (A) Each member shall be deemed to consent and agree to the deductions made and provided for in this section. (B) Payment of his or her salary less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment, except as to benefits provided by the system. (4) The members' contributions, so deducted from their salaries, shall be remitted to the system in such manner and form and into such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time. (d) (1) In addition to the contributions deducted from the salaries of a member, as provided in this section, a member may restore contributory, noncontributory, and any other service credit forfeited in a member termination refund by paying the actuarial equivalent of the member's benefits. (2) A member shall not be given credit for service rendered before the date the member received a refund of contributions until the member returns to the system all amounts due from the member. (e) (1) (A) Effective July 1, 1999, an active member shall: (i) Elect to become a contributory or noncontributory member of the system as provided for in this section; and (ii) File a written election with the system in accordance with the rules adopted by the board. (B) (i) The election of the member: (a) Is irrevocable; and (b) Shall be made on or before July 1, 2000. (ii) If a member does not make an election, then the status of the member on June 30, 2000: (a) Remains in effect; (b) Is irrevocable. (iii) The election of a member to become a contributory or noncontributory member of the system: (a) Applies only to the future salaries of a member of the system; (b) Does not alter the contribution requirements of a member; and (c) Does not alter the status of member contributions that existed before the election. (iv) A member who has previous noncontributory credited service may change credited service on which a member contribution has not been paid to contributory credited service by paying the system the actuarial equivalent of the member benefits. (v) If a member previously made contributions to only the first seven thousand eight hundred dollars ($7,800) of his or her annual salary, then the member cannot contribute on a full future salary until the member makes additional contributions to previous full salaries as provided under this section. (C) (i) From July 1, 2005, to July 1, 2021, an active member whose status later changes from a nonteacher status to an administrator or teacher status under contract for one hundred eighty-one (181) days or more shall become a contributory member of the system otherwise provided for in this section regardless of an earlier election to be a noncontributory member of the system. (ii) (a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system. (b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately. (c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (iii) Effective July 1, 2021, regardless of an earlier election to be a noncontributory member of the system, an active member whose status later changes from nonteacher status to administrator or teacher status under a contract for one hundred eighty-five (185) days or more shall become a contributory member of the system otherwise provided for in this section. (D) On and after July 1, 2007, an active member who has previously been a noncontributory member of the system, by election or otherwise, may make an irrevocable election to become a contributory member of the system under this section. (2) (A) (i) Effective July 1, 1999, an inactive member who reenters the system shall elect to become a contributory or noncontributory member of the system within one (1) year of the effective date that the member is considered an active member of the system. (ii) The election is effective the earlier of the: (a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or (b) July 1 immediately following the date the election is filed with the system. (iii) If the member does not make an election within one (1) year, then the status of the member before the member reentered the system remains in effect. (B) Effective July 1, 2007, an inactive member who becomes an active member of the system shall reenter as a contributory member of the system if the member was contributory when he or she first entered the inactive status. (C) Effective July 1, 2007, an inactive member or a rescinding retiree who reenters the system may make an irrevocable election to become a contributory member of the system under this section at the time of his or her reemployment regardless of his or her previous noncontributory status. (D) If the election is made: (i) Before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately; and (ii) After the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (3) (A) Effective July 1, 1999, a new member shall be a contributory member of the system. (B) From July 1, 1999, to June 30, 2007, a new member who is under contract with a covered employer for one hundred eighty (180) days or less shall have one (1) year to make an irrevocable election to become a contributory member of the system. (C) From July 1, 1999, to June 30, 2007, a new member who is not under contract with a covered employer shall not become a contributory member of the system. (D) (i) From July 1, 2007, to July 1, 2021, a new member under contract with a covered employer for one hundred eighty-one (181) days or more shall be a contributory member of the system. (ii) A new member not under contract with a covered employer may make an irrevocable election to become a contributory member of the system under this section. (E) (i) Effective July 1, 2021, a member under contract with a covered employer for one hundred eighty-five (185) days or more shall be a contributory member of the system. (ii) A member under contract with a covered employer for one hundred eighty-four (184) days or less may make an irrevocable election to become a contributory member of the system. (iii) If a member enters into a contract with a covered employer after the start of the fiscal year, the system may prorate the number of contracted days in order to determine whether the member should be classified as a contributory member or a noncontributory member who may make an election under subdivision (e)(3)(E)(ii) of this section. (4) (A) The board may exclude the participation of a member under this subsection if the board determines that the contributions of a member may not be treated as employer contributions under the: (i) Internal Revenue Code, 26 U.S.C. § 1 et seq.; or (ii) Income Tax Act of 1929, § 26-51-101 et seq. (B) The board shall interpret this subsection in a manner that is consistent with the requirements of the: (i) Internal Revenue Code; and (ii) Applicable United States Department of the Treasury regulations under the Internal Revenue Code, 26 U.S.C. § 401(a) . (f) (1) Employees who are eligible for membership in the system under § 24-7-202 , who are or have been erroneously enrolled in the Arkansas Public Employees' Retirement System, whose membership in that system is cancelled, and whose employee or employer contributions are refunded by that system under §§ 24-2-301 - 24-2-305 , shall make member contributions to the system as provided in subdivision (b)(2) of this section. (2) If such an employee becomes an active member of the contributory plan of this system, he or she may establish contributory service credit for all or part of his or her service that is cancelled by the system by paying the actuarial equivalent of the member's benefits to the system. (g) (1) (A) Each employer shall pay the member contributions under this section from the salary earned by a member after June 30, 1997, and those contributions shall then be treated as employer contributions in determining tax treatment under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., and the Income Tax Act of 1929, § 26-51-101 et seq. (B) For service purchase accounts established before July 1, 2011, that have an irrevocable payroll authorization established before July 1, 2012, or for accounts established by the system to allow a member to make payments on unreported or incorrectly reported contributory service, a member may elect to establish past service through payroll deductions, and the employer shall pay the amount required to establish the past service from the employee's salary earned after the employee signs an irrevocable payroll authorization prescribed by the board, and those payments shall then be treated as employer contributions in determining tax treatment under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2011, and the Income Tax Act of 1929, § 26-51-101 et seq. (2) Each employer shall continue to withhold federal and state income taxes based upon those contributions as income of the member until the Internal Revenue Service or the federal courts rule that, pursuant to the Internal Revenue Code, 26 U.S.C. § 414(h) , the contributions shall not be included as gross income of the member until they are distributed or made available to the member. (3) The employer shall pay these member contributions from the same source of funds used in paying the salary to the member. The employer may pay these contributions by a reduction in the cash salary of the member, by a setoff against future salary increases, or by a combination of a reduction in salary and a setoff against future salary increases. (4) If member contributions are paid by the employer as provided under this subsection, they shall be treated for all purposes of the system in the same manner and to the same extent possible as member contributions made prior to the date the employer began payment of the member's contributions hereunder. (5) Whenever member contributions are required to be paid by the employer under this subsection, the employee shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer. Amended by Act 2023, No. 69,§ 2, eff. 7/1/2023. Amended by Act 2023, No. 52,§ 1, eff. 7/1/2023. Amended by Act 2021, No. 443,§ 2, eff. 7/1/2021. Amended by Act 2021, No. 443,§ 1, eff. 7/1/2021. Amended by Act 2021, No. 279,§ 8, eff. 7/1/2021. Amended by Act 2021, No. 190,§ 3, eff. 7/1/2021. Amended by Act 2019, No. 427,§ 8, eff. 7/1/2019. Amended by Act 2019, No. 297,§ 2, eff. 7/1/2019. Amended by Act 2017, No. 550,§ 1, eff. 3/21/2017. Amended by Act 2013, No. 602,§ 1, eff. 4/4/2013. Acts 1973, No. 427, § 8; 1975, No. 549, § 4; 1977, No. 541, § 3; 1981, No. 365, § 4; 1981, No. 435, § 1; 1983, No. 619, § 7; 1983, No. 665, § 7; 1985, No. 504, § 2; 1985, No. 805, § 5; A.S.A. 1947, § 80-1442; Acts 1989, No. 821, § 8; 1989, No. 652, § 3; 1991, No. 14, § 1; 1991, No. 43, § 2; 1993, No. 435, §§ 4, 5; 1995, No. 460, § 2; 1995, No. 542, §§ 2, 3; 1997, No. 206, § 1; 1997, No. 393, § 1; 1999, No. 11, § 2; 1999, No. 81, §§ 1, 2; 1999, No. 864, § 1; 1999, No. 907, §§ 1, 2, 4; 2001, No. 155, § 3; 2003 (2nd Ex. Sess.), No. 23, § 1; 2003 (2nd Ex. Sess.), No. 47, § 1; 2005, No. 385, § 2; 2007, No. 93, § 1; 2009, No. 468, §§ 7-9; 2011, No. 41, § 2; 2011, No. 69, §§ 5-10.

(a) (1) The members' deposit account is the account: (A) In which member contributions are accumulated; (B) From which member refunds of contributions are paid; and (C) From which transfers are made as provided in this act. (2) Employer contributions that are paid by an employee instead of an employer shall be: (A) Credited to the members' deposit account; and (B) Subject to refund under the same conditions that regular member contributions are refunded. (3) In the event survivor benefits become payable on account of the death of a member, his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred to the survivor benefit account.

(1) The members' deposit account is the account: (A) In which member contributions are accumulated; (B) From which member refunds of contributions are paid; and (C) From which transfers are made as provided in this act.

(A) In which member contributions are accumulated;

(B) From which member refunds of contributions are paid; and

(C) From which transfers are made as provided in this act.

(2) Employer contributions that are paid by an employee instead of an employer shall be: (A) Credited to the members' deposit account; and (B) Subject to refund under the same conditions that regular member contributions are refunded.

(A) Credited to the members' deposit account; and

(B) Subject to refund under the same conditions that regular member contributions are refunded.

(3) In the event survivor benefits become payable on account of the death of a member, his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred to the survivor benefit account.

(b) (1) Except as provided otherwise in this section, the contributions of a member to the Arkansas Teacher Retirement System shall be the amounts set forth in this subsection. (2) (A) Each member who first became a member July 1, 1971, or later shall contribute to the system six percent (6%) of his or her salary for all salary earned on or before June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member July 1, 1971, or later shall contribute to the system the percentage of his or her salary set by the Board of Trustees of the Arkansas Teacher Retirement System under subdivision (b)(8) of this section. (3) Member contributions before July 1, 1969, shall be in accordance with provisions in force before July 1, 1969. (4) (A) For each member who first became a member before July 1, 1971, member contributions for the period after June 30, 1969, shall be six percent (6%) of the first seven thousand eight hundred dollars ($7,800) of his or her annual salary through June 30, 2013, unless he or she shall have elected, in accordance with rules and regulations established by the Board of Trustees of the Arkansas Teacher Retirement System, to contribute six percent (6%) of his or her full salary for the period after June 30, 1969, through June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member before July 1, 1971, shall contribute to the system the percentage of salary set by the board under subdivision (b)(8) of this section on the first seven thousand eight hundred dollars ($7,800) of his or her annual salary unless he or she elects to contribute a percentage of his or her entire salary, in accordance with the rules established by the board. (C) If the election is made before July 1, 1984, the member shall contribute to the system the difference between full salary member contributions and member contributions based on seven thousand eight hundred dollars ($7,800) annual covered salary retroactive to July 1, 1969, or to the actual date of employment, whichever is later, by paying the actuarial equivalent of the member's benefits to the system. (D) If the election is made July 1, 1984, or later, the member shall contribute to the system both the added member contributions and the added employer contributions that would have been paid to the system if the member's full salary always had been covered by paying the actuarial equivalent of the member's benefits to the system. (E) The interest and added employer contributions shall be considered member contributions for purposes of the system. However, any former active member who returns to covered employment on or after July 1, 1995, and who elects to make contributions to the system, shall contribute on his or her full salary. (5) Members who leave covered employment and who had annual compensation of seven thousand eight hundred dollars ($7,800) or less shall have, upon their return to covered employment, full salary considered for purposes of the system. (6) Contributions shall be required on all salary earned in covered employment during the fiscal year in which membership begins. (7) The member contribution rate shall be six percent (6%) unless increased by the board. (8) (A) Subject to the limitations under subdivision (b)(8)(D) of this section, the board may set the member contribution rate at no less than six percent (6%) and may increase the member contribution rate to maintain actuarial soundness. (B) An increase or decrease in a member contribution rate shall: (i) Apply to a complete fiscal year; and (ii) Remain in effect until modified by the board. (C) The board may adopt a change in the member contribution rate by resolution at any board meeting to apply to subsequent fiscal years until changed. (D) The board shall not increase the member contribution rate unless the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that an increase in the member contribution rate is prudent to maintain actuarial soundness.

(1) Except as provided otherwise in this section, the contributions of a member to the Arkansas Teacher Retirement System shall be the amounts set forth in this subsection.

(2) (A) Each member who first became a member July 1, 1971, or later shall contribute to the system six percent (6%) of his or her salary for all salary earned on or before June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member July 1, 1971, or later shall contribute to the system the percentage of his or her salary set by the Board of Trustees of the Arkansas Teacher Retirement System under subdivision (b)(8) of this section.

(A) Each member who first became a member July 1, 1971, or later shall contribute to the system six percent (6%) of his or her salary for all salary earned on or before June 30, 2013.

(B) Beginning July 1, 2013, each member who first became a member July 1, 1971, or later shall contribute to the system the percentage of his or her salary set by the Board of Trustees of the Arkansas Teacher Retirement System under subdivision (b)(8) of this section.

(3) Member contributions before July 1, 1969, shall be in accordance with provisions in force before July 1, 1969.

(4) (A) For each member who first became a member before July 1, 1971, member contributions for the period after June 30, 1969, shall be six percent (6%) of the first seven thousand eight hundred dollars ($7,800) of his or her annual salary through June 30, 2013, unless he or she shall have elected, in accordance with rules and regulations established by the Board of Trustees of the Arkansas Teacher Retirement System, to contribute six percent (6%) of his or her full salary for the period after June 30, 1969, through June 30, 2013. (B) Beginning July 1, 2013, each member who first became a member before July 1, 1971, shall contribute to the system the percentage of salary set by the board under subdivision (b)(8) of this section on the first seven thousand eight hundred dollars ($7,800) of his or her annual salary unless he or she elects to contribute a percentage of his or her entire salary, in accordance with the rules established by the board. (C) If the election is made before July 1, 1984, the member shall contribute to the system the difference between full salary member contributions and member contributions based on seven thousand eight hundred dollars ($7,800) annual covered salary retroactive to July 1, 1969, or to the actual date of employment, whichever is later, by paying the actuarial equivalent of the member's benefits to the system. (D) If the election is made July 1, 1984, or later, the member shall contribute to the system both the added member contributions and the added employer contributions that would have been paid to the system if the member's full salary always had been covered by paying the actuarial equivalent of the member's benefits to the system. (E) The interest and added employer contributions shall be considered member contributions for purposes of the system. However, any former active member who returns to covered employment on or after July 1, 1995, and who elects to make contributions to the system, shall contribute on his or her full salary.

(A) For each member who first became a member before July 1, 1971, member contributions for the period after June 30, 1969, shall be six percent (6%) of the first seven thousand eight hundred dollars ($7,800) of his or her annual salary through June 30, 2013, unless he or she shall have elected, in accordance with rules and regulations established by the Board of Trustees of the Arkansas Teacher Retirement System, to contribute six percent (6%) of his or her full salary for the period after June 30, 1969, through June 30, 2013.

(B) Beginning July 1, 2013, each member who first became a member before July 1, 1971, shall contribute to the system the percentage of salary set by the board under subdivision (b)(8) of this section on the first seven thousand eight hundred dollars ($7,800) of his or her annual salary unless he or she elects to contribute a percentage of his or her entire salary, in accordance with the rules established by the board.

(C) If the election is made before July 1, 1984, the member shall contribute to the system the difference between full salary member contributions and member contributions based on seven thousand eight hundred dollars ($7,800) annual covered salary retroactive to July 1, 1969, or to the actual date of employment, whichever is later, by paying the actuarial equivalent of the member's benefits to the system.

(D) If the election is made July 1, 1984, or later, the member shall contribute to the system both the added member contributions and the added employer contributions that would have been paid to the system if the member's full salary always had been covered by paying the actuarial equivalent of the member's benefits to the system.

(E) The interest and added employer contributions shall be considered member contributions for purposes of the system. However, any former active member who returns to covered employment on or after July 1, 1995, and who elects to make contributions to the system, shall contribute on his or her full salary.

(5) Members who leave covered employment and who had annual compensation of seven thousand eight hundred dollars ($7,800) or less shall have, upon their return to covered employment, full salary considered for purposes of the system.

(6) Contributions shall be required on all salary earned in covered employment during the fiscal year in which membership begins.

(7) The member contribution rate shall be six percent (6%) unless increased by the board.

(8) (A) Subject to the limitations under subdivision (b)(8)(D) of this section, the board may set the member contribution rate at no less than six percent (6%) and may increase the member contribution rate to maintain actuarial soundness. (B) An increase or decrease in a member contribution rate shall: (i) Apply to a complete fiscal year; and (ii) Remain in effect until modified by the board. (C) The board may adopt a change in the member contribution rate by resolution at any board meeting to apply to subsequent fiscal years until changed. (D) The board shall not increase the member contribution rate unless the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that an increase in the member contribution rate is prudent to maintain actuarial soundness.

(A) Subject to the limitations under subdivision (b)(8)(D) of this section, the board may set the member contribution rate at no less than six percent (6%) and may increase the member contribution rate to maintain actuarial soundness.

(B) An increase or decrease in a member contribution rate shall: (i) Apply to a complete fiscal year; and (ii) Remain in effect until modified by the board.

(i) Apply to a complete fiscal year; and

(ii) Remain in effect until modified by the board.

(C) The board may adopt a change in the member contribution rate by resolution at any board meeting to apply to subsequent fiscal years until changed.

(D) The board shall not increase the member contribution rate unless the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that an increase in the member contribution rate is prudent to maintain actuarial soundness.

(i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and

(ii) Board determines that an increase in the member contribution rate is prudent to maintain actuarial soundness.

(c) (1) (A) Each employer shall deduct the member contributions provided for in this section from the salary of each member on every payroll, for every payroll period, from the date of his or her entrance into the system until the member retires or terminates, and the employer shall remit the contributions to the system. (B) (i) If the employer fails to report the required service or salary of a member and remit the contributions to the system, the system shall have the right to collect from the member and the employer the contributions due, if any, from each, together with interest beginning with the subsequent fiscal year after the contributions are due. (ii) A member shall not be given credit for service rendered until all member contributions and interest on the unreported service are paid in full or the service is converted to noncontributory service credit under § 24-7-205(b)(1)(C) . (2) The member's contributions provided for in this section shall be made notwithstanding that the minimum salary provided by law for any member shall be thereby changed. (3) (A) Each member shall be deemed to consent and agree to the deductions made and provided for in this section. (B) Payment of his or her salary less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment, except as to benefits provided by the system. (4) The members' contributions, so deducted from their salaries, shall be remitted to the system in such manner and form and into such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time.

(1) (A) Each employer shall deduct the member contributions provided for in this section from the salary of each member on every payroll, for every payroll period, from the date of his or her entrance into the system until the member retires or terminates, and the employer shall remit the contributions to the system. (B) (i) If the employer fails to report the required service or salary of a member and remit the contributions to the system, the system shall have the right to collect from the member and the employer the contributions due, if any, from each, together with interest beginning with the subsequent fiscal year after the contributions are due. (ii) A member shall not be given credit for service rendered until all member contributions and interest on the unreported service are paid in full or the service is converted to noncontributory service credit under § 24-7-205(b)(1)(C) .

(A) Each employer shall deduct the member contributions provided for in this section from the salary of each member on every payroll, for every payroll period, from the date of his or her entrance into the system until the member retires or terminates, and the employer shall remit the contributions to the system.

(B) (i) If the employer fails to report the required service or salary of a member and remit the contributions to the system, the system shall have the right to collect from the member and the employer the contributions due, if any, from each, together with interest beginning with the subsequent fiscal year after the contributions are due. (ii) A member shall not be given credit for service rendered until all member contributions and interest on the unreported service are paid in full or the service is converted to noncontributory service credit under § 24-7-205(b)(1)(C) .

(i) If the employer fails to report the required service or salary of a member and remit the contributions to the system, the system shall have the right to collect from the member and the employer the contributions due, if any, from each, together with interest beginning with the subsequent fiscal year after the contributions are due.

(ii) A member shall not be given credit for service rendered until all member contributions and interest on the unreported service are paid in full or the service is converted to noncontributory service credit under § 24-7-205(b)(1)(C) .

(2) The member's contributions provided for in this section shall be made notwithstanding that the minimum salary provided by law for any member shall be thereby changed.

(3) (A) Each member shall be deemed to consent and agree to the deductions made and provided for in this section. (B) Payment of his or her salary less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment, except as to benefits provided by the system.

(A) Each member shall be deemed to consent and agree to the deductions made and provided for in this section.

(B) Payment of his or her salary less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment, except as to benefits provided by the system.

(4) The members' contributions, so deducted from their salaries, shall be remitted to the system in such manner and form and into such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time.

(d) (1) In addition to the contributions deducted from the salaries of a member, as provided in this section, a member may restore contributory, noncontributory, and any other service credit forfeited in a member termination refund by paying the actuarial equivalent of the member's benefits. (2) A member shall not be given credit for service rendered before the date the member received a refund of contributions until the member returns to the system all amounts due from the member.

(1) In addition to the contributions deducted from the salaries of a member, as provided in this section, a member may restore contributory, noncontributory, and any other service credit forfeited in a member termination refund by paying the actuarial equivalent of the member's benefits.

(2) A member shall not be given credit for service rendered before the date the member received a refund of contributions until the member returns to the system all amounts due from the member.

(e) (1) (A) Effective July 1, 1999, an active member shall: (i) Elect to become a contributory or noncontributory member of the system as provided for in this section; and (ii) File a written election with the system in accordance with the rules adopted by the board. (B) (i) The election of the member: (a) Is irrevocable; and (b) Shall be made on or before July 1, 2000. (ii) If a member does not make an election, then the status of the member on June 30, 2000: (a) Remains in effect; (b) Is irrevocable. (iii) The election of a member to become a contributory or noncontributory member of the system: (a) Applies only to the future salaries of a member of the system; (b) Does not alter the contribution requirements of a member; and (c) Does not alter the status of member contributions that existed before the election. (iv) A member who has previous noncontributory credited service may change credited service on which a member contribution has not been paid to contributory credited service by paying the system the actuarial equivalent of the member benefits. (v) If a member previously made contributions to only the first seven thousand eight hundred dollars ($7,800) of his or her annual salary, then the member cannot contribute on a full future salary until the member makes additional contributions to previous full salaries as provided under this section. (C) (i) From July 1, 2005, to July 1, 2021, an active member whose status later changes from a nonteacher status to an administrator or teacher status under contract for one hundred eighty-one (181) days or more shall become a contributory member of the system otherwise provided for in this section regardless of an earlier election to be a noncontributory member of the system. (ii) (a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system. (b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately. (c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (iii) Effective July 1, 2021, regardless of an earlier election to be a noncontributory member of the system, an active member whose status later changes from nonteacher status to administrator or teacher status under a contract for one hundred eighty-five (185) days or more shall become a contributory member of the system otherwise provided for in this section. (D) On and after July 1, 2007, an active member who has previously been a noncontributory member of the system, by election or otherwise, may make an irrevocable election to become a contributory member of the system under this section. (2) (A) (i) Effective July 1, 1999, an inactive member who reenters the system shall elect to become a contributory or noncontributory member of the system within one (1) year of the effective date that the member is considered an active member of the system. (ii) The election is effective the earlier of the: (a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or (b) July 1 immediately following the date the election is filed with the system. (iii) If the member does not make an election within one (1) year, then the status of the member before the member reentered the system remains in effect. (B) Effective July 1, 2007, an inactive member who becomes an active member of the system shall reenter as a contributory member of the system if the member was contributory when he or she first entered the inactive status. (C) Effective July 1, 2007, an inactive member or a rescinding retiree who reenters the system may make an irrevocable election to become a contributory member of the system under this section at the time of his or her reemployment regardless of his or her previous noncontributory status. (D) If the election is made: (i) Before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately; and (ii) After the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (3) (A) Effective July 1, 1999, a new member shall be a contributory member of the system. (B) From July 1, 1999, to June 30, 2007, a new member who is under contract with a covered employer for one hundred eighty (180) days or less shall have one (1) year to make an irrevocable election to become a contributory member of the system. (C) From July 1, 1999, to June 30, 2007, a new member who is not under contract with a covered employer shall not become a contributory member of the system. (D) (i) From July 1, 2007, to July 1, 2021, a new member under contract with a covered employer for one hundred eighty-one (181) days or more shall be a contributory member of the system. (ii) A new member not under contract with a covered employer may make an irrevocable election to become a contributory member of the system under this section. (E) (i) Effective July 1, 2021, a member under contract with a covered employer for one hundred eighty-five (185) days or more shall be a contributory member of the system. (ii) A member under contract with a covered employer for one hundred eighty-four (184) days or less may make an irrevocable election to become a contributory member of the system. (iii) If a member enters into a contract with a covered employer after the start of the fiscal year, the system may prorate the number of contracted days in order to determine whether the member should be classified as a contributory member or a noncontributory member who may make an election under subdivision (e)(3)(E)(ii) of this section. (4) (A) The board may exclude the participation of a member under this subsection if the board determines that the contributions of a member may not be treated as employer contributions under the: (i) Internal Revenue Code, 26 U.S.C. § 1 et seq.; or (ii) Income Tax Act of 1929, § 26-51-101 et seq. (B) The board shall interpret this subsection in a manner that is consistent with the requirements of the: (i) Internal Revenue Code; and (ii) Applicable United States Department of the Treasury regulations under the Internal Revenue Code, 26 U.S.C. § 401(a) .

(1) (A) Effective July 1, 1999, an active member shall: (i) Elect to become a contributory or noncontributory member of the system as provided for in this section; and (ii) File a written election with the system in accordance with the rules adopted by the board. (B) (i) The election of the member: (a) Is irrevocable; and (b) Shall be made on or before July 1, 2000. (ii) If a member does not make an election, then the status of the member on June 30, 2000: (a) Remains in effect; (b) Is irrevocable. (iii) The election of a member to become a contributory or noncontributory member of the system: (a) Applies only to the future salaries of a member of the system; (b) Does not alter the contribution requirements of a member; and (c) Does not alter the status of member contributions that existed before the election. (iv) A member who has previous noncontributory credited service may change credited service on which a member contribution has not been paid to contributory credited service by paying the system the actuarial equivalent of the member benefits. (v) If a member previously made contributions to only the first seven thousand eight hundred dollars ($7,800) of his or her annual salary, then the member cannot contribute on a full future salary until the member makes additional contributions to previous full salaries as provided under this section. (C) (i) From July 1, 2005, to July 1, 2021, an active member whose status later changes from a nonteacher status to an administrator or teacher status under contract for one hundred eighty-one (181) days or more shall become a contributory member of the system otherwise provided for in this section regardless of an earlier election to be a noncontributory member of the system. (ii) (a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system. (b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately. (c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (iii) Effective July 1, 2021, regardless of an earlier election to be a noncontributory member of the system, an active member whose status later changes from nonteacher status to administrator or teacher status under a contract for one hundred eighty-five (185) days or more shall become a contributory member of the system otherwise provided for in this section. (D) On and after July 1, 2007, an active member who has previously been a noncontributory member of the system, by election or otherwise, may make an irrevocable election to become a contributory member of the system under this section.

(A) Effective July 1, 1999, an active member shall: (i) Elect to become a contributory or noncontributory member of the system as provided for in this section; and (ii) File a written election with the system in accordance with the rules adopted by the board.

(i) Elect to become a contributory or noncontributory member of the system as provided for in this section; and

(ii) File a written election with the system in accordance with the rules adopted by the board.

(B) (i) The election of the member: (a) Is irrevocable; and (b) Shall be made on or before July 1, 2000. (ii) If a member does not make an election, then the status of the member on June 30, 2000: (a) Remains in effect; (b) Is irrevocable. (iii) The election of a member to become a contributory or noncontributory member of the system: (a) Applies only to the future salaries of a member of the system; (b) Does not alter the contribution requirements of a member; and (c) Does not alter the status of member contributions that existed before the election. (iv) A member who has previous noncontributory credited service may change credited service on which a member contribution has not been paid to contributory credited service by paying the system the actuarial equivalent of the member benefits. (v) If a member previously made contributions to only the first seven thousand eight hundred dollars ($7,800) of his or her annual salary, then the member cannot contribute on a full future salary until the member makes additional contributions to previous full salaries as provided under this section.

(i) The election of the member: (a) Is irrevocable; and (b) Shall be made on or before July 1, 2000.

(a) Is irrevocable; and

(b) Shall be made on or before July 1, 2000.

(ii) If a member does not make an election, then the status of the member on June 30, 2000: (a) Remains in effect; (b) Is irrevocable.

(a) Remains in effect;

(b) Is irrevocable.

(iii) The election of a member to become a contributory or noncontributory member of the system: (a) Applies only to the future salaries of a member of the system; (b) Does not alter the contribution requirements of a member; and (c) Does not alter the status of member contributions that existed before the election.

(a) Applies only to the future salaries of a member of the system;

(b) Does not alter the contribution requirements of a member; and

(c) Does not alter the status of member contributions that existed before the election.

(iv) A member who has previous noncontributory credited service may change credited service on which a member contribution has not been paid to contributory credited service by paying the system the actuarial equivalent of the member benefits.

(v) If a member previously made contributions to only the first seven thousand eight hundred dollars ($7,800) of his or her annual salary, then the member cannot contribute on a full future salary until the member makes additional contributions to previous full salaries as provided under this section.

(C) (i) From July 1, 2005, to July 1, 2021, an active member whose status later changes from a nonteacher status to an administrator or teacher status under contract for one hundred eighty-one (181) days or more shall become a contributory member of the system otherwise provided for in this section regardless of an earlier election to be a noncontributory member of the system. (ii) (a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system. (b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately. (c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year. (iii) Effective July 1, 2021, regardless of an earlier election to be a noncontributory member of the system, an active member whose status later changes from nonteacher status to administrator or teacher status under a contract for one hundred eighty-five (185) days or more shall become a contributory member of the system otherwise provided for in this section.

(i) From July 1, 2005, to July 1, 2021, an active member whose status later changes from a nonteacher status to an administrator or teacher status under contract for one hundred eighty-one (181) days or more shall become a contributory member of the system otherwise provided for in this section regardless of an earlier election to be a noncontributory member of the system.

(ii) (a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system. (b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately. (c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year.

(a) From July 1, 2005, to June 30, 2007, an active member who has previously elected to be a noncontributory member of the system may make an irrevocable election to become a contributory member of the system.

(b) If the election is made before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately.

(c) If the election is made after the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year.

(iii) Effective July 1, 2021, regardless of an earlier election to be a noncontributory member of the system, an active member whose status later changes from nonteacher status to administrator or teacher status under a contract for one hundred eighty-five (185) days or more shall become a contributory member of the system otherwise provided for in this section.

(D) On and after July 1, 2007, an active member who has previously been a noncontributory member of the system, by election or otherwise, may make an irrevocable election to become a contributory member of the system under this section.

(2) (A) (i) Effective July 1, 1999, an inactive member who reenters the system shall elect to become a contributory or noncontributory member of the system within one (1) year of the effective date that the member is considered an active member of the system. (ii) The election is effective the earlier of the: (a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or (b) July 1 immediately following the date the election is filed with the system. (iii) If the member does not make an election within one (1) year, then the status of the member before the member reentered the system remains in effect. (B) Effective July 1, 2007, an inactive member who becomes an active member of the system shall reenter as a contributory member of the system if the member was contributory when he or she first entered the inactive status. (C) Effective July 1, 2007, an inactive member or a rescinding retiree who reenters the system may make an irrevocable election to become a contributory member of the system under this section at the time of his or her reemployment regardless of his or her previous noncontributory status. (D) If the election is made: (i) Before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately; and (ii) After the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year.

(A) (i) Effective July 1, 1999, an inactive member who reenters the system shall elect to become a contributory or noncontributory member of the system within one (1) year of the effective date that the member is considered an active member of the system. (ii) The election is effective the earlier of the: (a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or (b) July 1 immediately following the date the election is filed with the system. (iii) If the member does not make an election within one (1) year, then the status of the member before the member reentered the system remains in effect.

(i) Effective July 1, 1999, an inactive member who reenters the system shall elect to become a contributory or noncontributory member of the system within one (1) year of the effective date that the member is considered an active member of the system.

(ii) The election is effective the earlier of the: (a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or (b) July 1 immediately following the date the election is filed with the system.

(a) Preparation of the payroll containing the first salary payment upon the reentry of the member into the system; or

(b) July 1 immediately following the date the election is filed with the system.

(iii) If the member does not make an election within one (1) year, then the status of the member before the member reentered the system remains in effect.

(B) Effective July 1, 2007, an inactive member who becomes an active member of the system shall reenter as a contributory member of the system if the member was contributory when he or she first entered the inactive status.

(C) Effective July 1, 2007, an inactive member or a rescinding retiree who reenters the system may make an irrevocable election to become a contributory member of the system under this section at the time of his or her reemployment regardless of his or her previous noncontributory status.

(D) If the election is made: (i) Before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately; and (ii) After the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year.

(i) Before the preparation of the first salary payment to the member in the fiscal year, the election is effective immediately; and

(ii) After the preparation of the first payroll containing the first salary payment to the member in the fiscal year, the election is effective July 1 of the next fiscal year.

(3) (A) Effective July 1, 1999, a new member shall be a contributory member of the system. (B) From July 1, 1999, to June 30, 2007, a new member who is under contract with a covered employer for one hundred eighty (180) days or less shall have one (1) year to make an irrevocable election to become a contributory member of the system. (C) From July 1, 1999, to June 30, 2007, a new member who is not under contract with a covered employer shall not become a contributory member of the system. (D) (i) From July 1, 2007, to July 1, 2021, a new member under contract with a covered employer for one hundred eighty-one (181) days or more shall be a contributory member of the system. (ii) A new member not under contract with a covered employer may make an irrevocable election to become a contributory member of the system under this section. (E) (i) Effective July 1, 2021, a member under contract with a covered employer for one hundred eighty-five (185) days or more shall be a contributory member of the system. (ii) A member under contract with a covered employer for one hundred eighty-four (184) days or less may make an irrevocable election to become a contributory member of the system. (iii) If a member enters into a contract with a covered employer after the start of the fiscal year, the system may prorate the number of contracted days in order to determine whether the member should be classified as a contributory member or a noncontributory member who may make an election under subdivision (e)(3)(E)(ii) of this section.

(A) Effective July 1, 1999, a new member shall be a contributory member of the system.

(B) From July 1, 1999, to June 30, 2007, a new member who is under contract with a covered employer for one hundred eighty (180) days or less shall have one (1) year to make an irrevocable election to become a contributory member of the system.

(C) From July 1, 1999, to June 30, 2007, a new member who is not under contract with a covered employer shall not become a contributory member of the system.

(D) (i) From July 1, 2007, to July 1, 2021, a new member under contract with a covered employer for one hundred eighty-one (181) days or more shall be a contributory member of the system. (ii) A new member not under contract with a covered employer may make an irrevocable election to become a contributory member of the system under this section.

(i) From July 1, 2007, to July 1, 2021, a new member under contract with a covered employer for one hundred eighty-one (181) days or more shall be a contributory member of the system.

(ii) A new member not under contract with a covered employer may make an irrevocable election to become a contributory member of the system under this section.

(E) (i) Effective July 1, 2021, a member under contract with a covered employer for one hundred eighty-five (185) days or more shall be a contributory member of the system. (ii) A member under contract with a covered employer for one hundred eighty-four (184) days or less may make an irrevocable election to become a contributory member of the system. (iii) If a member enters into a contract with a covered employer after the start of the fiscal year, the system may prorate the number of contracted days in order to determine whether the member should be classified as a contributory member or a noncontributory member who may make an election under subdivision (e)(3)(E)(ii) of this section.

(i) Effective July 1, 2021, a member under contract with a covered employer for one hundred eighty-five (185) days or more shall be a contributory member of the system.

(ii) A member under contract with a covered employer for one hundred eighty-four (184) days or less may make an irrevocable election to become a contributory member of the system.

(iii) If a member enters into a contract with a covered employer after the start of the fiscal year, the system may prorate the number of contracted days in order to determine whether the member should be classified as a contributory member or a noncontributory member who may make an election under subdivision (e)(3)(E)(ii) of this section.

(4) (A) The board may exclude the participation of a member under this subsection if the board determines that the contributions of a member may not be treated as employer contributions under the: (i) Internal Revenue Code, 26 U.S.C. § 1 et seq.; or (ii) Income Tax Act of 1929, § 26-51-101 et seq. (B) The board shall interpret this subsection in a manner that is consistent with the requirements of the: (i) Internal Revenue Code; and (ii) Applicable United States Department of the Treasury regulations under the Internal Revenue Code, 26 U.S.C. § 401(a) .

(A) The board may exclude the participation of a member under this subsection if the board determines that the contributions of a member may not be treated as employer contributions under the: (i) Internal Revenue Code, 26 U.S.C. § 1 et seq.; or (ii) Income Tax Act of 1929, § 26-51-101 et seq.

(i) Internal Revenue Code, 26 U.S.C. § 1 et seq.; or

(ii) Income Tax Act of 1929, § 26-51-101 et seq.

(B) The board shall interpret this subsection in a manner that is consistent with the requirements of the: (i) Internal Revenue Code; and (ii) Applicable United States Department of the Treasury regulations under the Internal Revenue Code, 26 U.S.C. § 401(a) .

(i) Internal Revenue Code; and

(ii) Applicable United States Department of the Treasury regulations under the Internal Revenue Code, 26 U.S.C. § 401(a) .

(f) (1) Employees who are eligible for membership in the system under § 24-7-202 , who are or have been erroneously enrolled in the Arkansas Public Employees' Retirement System, whose membership in that system is cancelled, and whose employee or employer contributions are refunded by that system under §§ 24-2-301 - 24-2-305 , shall make member contributions to the system as provided in subdivision (b)(2) of this section. (2) If such an employee becomes an active member of the contributory plan of this system, he or she may establish contributory service credit for all or part of his or her service that is cancelled by the system by paying the actuarial equivalent of the member's benefits to the system.

(1) Employees who are eligible for membership in the system under § 24-7-202 , who are or have been erroneously enrolled in the Arkansas Public Employees' Retirement System, whose membership in that system is cancelled, and whose employee or employer contributions are refunded by that system under §§ 24-2-301 - 24-2-305 , shall make member contributions to the system as provided in subdivision (b)(2) of this section.

(2) If such an employee becomes an active member of the contributory plan of this system, he or she may establish contributory service credit for all or part of his or her service that is cancelled by the system by paying the actuarial equivalent of the member's benefits to the system.

(g) (1) (A) Each employer shall pay the member contributions under this section from the salary earned by a member after June 30, 1997, and those contributions shall then be treated as employer contributions in determining tax treatment under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., and the Income Tax Act of 1929, § 26-51-101 et seq. (B) For service purchase accounts established before July 1, 2011, that have an irrevocable payroll authorization established before July 1, 2012, or for accounts established by the system to allow a member to make payments on unreported or incorrectly reported contributory service, a member may elect to establish past service through payroll deductions, and the employer shall pay the amount required to establish the past service from the employee's salary earned after the employee signs an irrevocable payroll authorization prescribed by the board, and those payments shall then be treated as employer contributions in determining tax treatment under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2011, and the Income Tax Act of 1929, § 26-51-101 et seq. (2) Each employer shall continue to withhold federal and state income taxes based upon those contributions as income of the member until the Internal Revenue Service or the federal courts rule that, pursuant to the Internal Revenue Code, 26 U.S.C. § 414(h) , the contributions shall not be included as gross income of the member until they are distributed or made available to the member. (3) The employer shall pay these member contributions from the same source of funds used in paying the salary to the member. The employer may pay these contributions by a reduction in the cash salary of the member, by a setoff against future salary increases, or by a combination of a reduction in salary and a setoff against future salary increases. (4) If member contributions are paid by the employer as provided under this subsection, they shall be treated for all purposes of the system in the same manner and to the same extent possible as member contributions made prior to the date the employer began payment of the member's contributions hereunder. (5) Whenever member contributions are required to be paid by the employer under this subsection, the employee shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer.

(1) (A) Each employer shall pay the member contributions under this section from the salary earned by a member after June 30, 1997, and those contributions shall then be treated as employer contributions in determining tax treatment under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., and the Income Tax Act of 1929, § 26-51-101 et seq. (B) For service purchase accounts established before July 1, 2011, that have an irrevocable payroll authorization established before July 1, 2012, or for accounts established by the system to allow a member to make payments on unreported or incorrectly reported contributory service, a member may elect to establish past service through payroll deductions, and the employer shall pay the amount required to establish the past service from the employee's salary earned after the employee signs an irrevocable payroll authorization prescribed by the board, and those payments shall then be treated as employer contributions in determining tax treatment under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2011, and the Income Tax Act of 1929, § 26-51-101 et seq.

(A) Each employer shall pay the member contributions under this section from the salary earned by a member after June 30, 1997, and those contributions shall then be treated as employer contributions in determining tax treatment under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., and the Income Tax Act of 1929, § 26-51-101 et seq.

(B) For service purchase accounts established before July 1, 2011, that have an irrevocable payroll authorization established before July 1, 2012, or for accounts established by the system to allow a member to make payments on unreported or incorrectly reported contributory service, a member may elect to establish past service through payroll deductions, and the employer shall pay the amount required to establish the past service from the employee's salary earned after the employee signs an irrevocable payroll authorization prescribed by the board, and those payments shall then be treated as employer contributions in determining tax treatment under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2011, and the Income Tax Act of 1929, § 26-51-101 et seq.

(2) Each employer shall continue to withhold federal and state income taxes based upon those contributions as income of the member until the Internal Revenue Service or the federal courts rule that, pursuant to the Internal Revenue Code, 26 U.S.C. § 414(h) , the contributions shall not be included as gross income of the member until they are distributed or made available to the member.

(3) The employer shall pay these member contributions from the same source of funds used in paying the salary to the member. The employer may pay these contributions by a reduction in the cash salary of the member, by a setoff against future salary increases, or by a combination of a reduction in salary and a setoff against future salary increases.

(4) If member contributions are paid by the employer as provided under this subsection, they shall be treated for all purposes of the system in the same manner and to the same extent possible as member contributions made prior to the date the employer began payment of the member's contributions hereunder.

(5) Whenever member contributions are required to be paid by the employer under this subsection, the employee shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer.

Amended by Act 2023, No. 69,§ 2, eff. 7/1/2023.

Amended by Act 2023, No. 52,§ 1, eff. 7/1/2023.

Amended by Act 2021, No. 443,§ 2, eff. 7/1/2021.

Amended by Act 2021, No. 443,§ 1, eff. 7/1/2021.

Amended by Act 2021, No. 279,§ 8, eff. 7/1/2021.

Amended by Act 2021, No. 190,§ 3, eff. 7/1/2021.

Amended by Act 2019, No. 427,§ 8, eff. 7/1/2019.

Amended by Act 2019, No. 297,§ 2, eff. 7/1/2019.

Amended by Act 2017, No. 550,§ 1, eff. 3/21/2017.

Amended by Act 2013, No. 602,§ 1, eff. 4/4/2013.

Acts 1973, No. 427, § 8; 1975, No. 549, § 4; 1977, No. 541, § 3; 1981, No. 365, § 4; 1981, No. 435, § 1; 1983, No. 619, § 7; 1983, No. 665, § 7; 1985, No. 504, § 2; 1985, No. 805, § 5; A.S.A. 1947, § 80-1442; Acts 1989, No. 821, § 8; 1989, No. 652, § 3; 1991, No. 14, § 1; 1991, No. 43, § 2; 1993, No. 435, §§ 4, 5; 1995, No. 460, § 2; 1995, No. 542, §§ 2, 3; 1997, No. 206, § 1; 1997, No. 393, § 1; 1999, No. 11, § 2; 1999, No. 81, §§ 1, 2; 1999, No. 864, § 1; 1999, No. 907, §§ 1, 2, 4; 2001, No. 155, § 3; 2003 (2nd Ex. Sess.), No. 23, § 1; 2003 (2nd Ex. Sess.), No. 47, § 1; 2005, No. 385, § 2; 2007, No. 93, § 1; 2009, No. 468, §§ 7-9; 2011, No. 41, § 2; 2011, No. 69, §§ 5-10.
Ark. Code Ann. § 24-8-315 — AR Code / Title 24 / Chapter 8 / Subchapter 3 / Section 24-8-315
Multicounty districts - Options
Status: in_force

(a) The quorum court of any county which is divided into two (2) districts and has two (2) county seats and in which the municipal court is funded primarily by the county shall have the option to provide retirement benefits for the municipal court judge and the municipal court clerk under a local retirement plan provided for in this subchapter or to include the municipal court judge and municipal court clerk in the Arkansas Public Employees' Retirement System. (b) (1) In any county which is divided into two (2) districts and has two (2) county seats and in which the municipal court is funded primarily by the county, the quorum court is authorized to create a municipal court retirement board of trustees. (2) (A) The board shall be composed of the county judge, county treasurer, county clerk, the mayor of the city in which the municipal court sits, the judge of the municipal court, and one (1) member of the quorum court that represents the service district in which the municipal court sits to be designated by the county judge. (B) The members of the board shall serve without pay. (C) The county judge shall be chair of the board, the county clerk shall be secretary of the board, and the county treasurer shall be treasurer of the board. (D) (i) The county treasurer, as treasurer of the board, shall deposit such funds as the board shall direct in a suitable depository and shall withdraw such funds on direction of the board. (ii) The treasurer shall execute a bond in a sum fixed by the board to guarantee his or her good faith in the handling of the funds coming to his or her hands under the provisions of this section. (c) The board shall meet one (1) time each year, and special meetings may be called by the chair or a majority of the members at any time. (d) (1) The board shall have the authority and duty to receive and administer the funds collected in the county under § 24-8-303 [repealed] and under former subsection (e) of this section [repealed]. (2) The board shall have authority to invest such funds as are not necessary for immediate use for payment of retirement benefits in interest-bearing securities of the State of Arkansas or certificates of the United States, or any or all of such securities. (e) (1) Any county employer or municipal employer participating in the Arkansas Public Employees' Retirement System that is required by law to establish a local retirement plan for any employee shall have the option at the time of employment or at any time thereafter to provide retirement benefits for the employee under the local retirement plan or to include the employee in the Arkansas Public Employees' Retirement System. However, a municipality participating in the system or a municipality electing at some future date to participate in the system may not transfer a municipal court judge or municipal court clerk from a local plan to the system without the express permission of the affected municipal court judge or municipal court clerk. (2) (A) The decision to enroll the employee in the system in lieu of a local retirement plan shall be made by the employer's governing body and the results certified to the Board of Trustees of the Arkansas Public Employees' Retirement System. The employer shall also certify that the employee has not received and will not be eligible to receive a benefit from a local retirement plan. (B) Upon enrollment in the system, the member may receive credit at his or her option for the service rendered in the position prior to enrollment, subject to the following conditions: (i) The member is a participating employee covered under the system at the time of the purchase; (ii) The member furnishes proof in a form required by the system of the service and compensation received; (iii) 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. The member may purchase all of the service or any portion thereof in multiples of one (1) year; and (iv) The payment shall be made in one (1) lump sum. Acts 1991, No. 851, §§ 1-6; 1992 (1st Ex. Sess.), No. 71, § 1; 1995, No. 1256, § 20; 1995 (1st Ex. Sess.), No. 13, § 4; 1999, No. 1066, § 4.

(a) The quorum court of any county which is divided into two (2) districts and has two (2) county seats and in which the municipal court is funded primarily by the county shall have the option to provide retirement benefits for the municipal court judge and the municipal court clerk under a local retirement plan provided for in this subchapter or to include the municipal court judge and municipal court clerk in the Arkansas Public Employees' Retirement System.

(b) (1) In any county which is divided into two (2) districts and has two (2) county seats and in which the municipal court is funded primarily by the county, the quorum court is authorized to create a municipal court retirement board of trustees. (2) (A) The board shall be composed of the county judge, county treasurer, county clerk, the mayor of the city in which the municipal court sits, the judge of the municipal court, and one (1) member of the quorum court that represents the service district in which the municipal court sits to be designated by the county judge. (B) The members of the board shall serve without pay. (C) The county judge shall be chair of the board, the county clerk shall be secretary of the board, and the county treasurer shall be treasurer of the board. (D) (i) The county treasurer, as treasurer of the board, shall deposit such funds as the board shall direct in a suitable depository and shall withdraw such funds on direction of the board. (ii) The treasurer shall execute a bond in a sum fixed by the board to guarantee his or her good faith in the handling of the funds coming to his or her hands under the provisions of this section.

(1) In any county which is divided into two (2) districts and has two (2) county seats and in which the municipal court is funded primarily by the county, the quorum court is authorized to create a municipal court retirement board of trustees.

(2) (A) The board shall be composed of the county judge, county treasurer, county clerk, the mayor of the city in which the municipal court sits, the judge of the municipal court, and one (1) member of the quorum court that represents the service district in which the municipal court sits to be designated by the county judge. (B) The members of the board shall serve without pay. (C) The county judge shall be chair of the board, the county clerk shall be secretary of the board, and the county treasurer shall be treasurer of the board. (D) (i) The county treasurer, as treasurer of the board, shall deposit such funds as the board shall direct in a suitable depository and shall withdraw such funds on direction of the board. (ii) The treasurer shall execute a bond in a sum fixed by the board to guarantee his or her good faith in the handling of the funds coming to his or her hands under the provisions of this section.

(A) The board shall be composed of the county judge, county treasurer, county clerk, the mayor of the city in which the municipal court sits, the judge of the municipal court, and one (1) member of the quorum court that represents the service district in which the municipal court sits to be designated by the county judge.

(B) The members of the board shall serve without pay.

(C) The county judge shall be chair of the board, the county clerk shall be secretary of the board, and the county treasurer shall be treasurer of the board.

(D) (i) The county treasurer, as treasurer of the board, shall deposit such funds as the board shall direct in a suitable depository and shall withdraw such funds on direction of the board. (ii) The treasurer shall execute a bond in a sum fixed by the board to guarantee his or her good faith in the handling of the funds coming to his or her hands under the provisions of this section.

(i) The county treasurer, as treasurer of the board, shall deposit such funds as the board shall direct in a suitable depository and shall withdraw such funds on direction of the board.

(ii) The treasurer shall execute a bond in a sum fixed by the board to guarantee his or her good faith in the handling of the funds coming to his or her hands under the provisions of this section.

(c) The board shall meet one (1) time each year, and special meetings may be called by the chair or a majority of the members at any time.

(d) (1) The board shall have the authority and duty to receive and administer the funds collected in the county under § 24-8-303 [repealed] and under former subsection (e) of this section [repealed]. (2) The board shall have authority to invest such funds as are not necessary for immediate use for payment of retirement benefits in interest-bearing securities of the State of Arkansas or certificates of the United States, or any or all of such securities.

(1) The board shall have the authority and duty to receive and administer the funds collected in the county under § 24-8-303 [repealed] and under former subsection (e) of this section [repealed].

(2) The board shall have authority to invest such funds as are not necessary for immediate use for payment of retirement benefits in interest-bearing securities of the State of Arkansas or certificates of the United States, or any or all of such securities.

(e) (1) Any county employer or municipal employer participating in the Arkansas Public Employees' Retirement System that is required by law to establish a local retirement plan for any employee shall have the option at the time of employment or at any time thereafter to provide retirement benefits for the employee under the local retirement plan or to include the employee in the Arkansas Public Employees' Retirement System. However, a municipality participating in the system or a municipality electing at some future date to participate in the system may not transfer a municipal court judge or municipal court clerk from a local plan to the system without the express permission of the affected municipal court judge or municipal court clerk. (2) (A) The decision to enroll the employee in the system in lieu of a local retirement plan shall be made by the employer's governing body and the results certified to the Board of Trustees of the Arkansas Public Employees' Retirement System. The employer shall also certify that the employee has not received and will not be eligible to receive a benefit from a local retirement plan. (B) Upon enrollment in the system, the member may receive credit at his or her option for the service rendered in the position prior to enrollment, subject to the following conditions: (i) The member is a participating employee covered under the system at the time of the purchase; (ii) The member furnishes proof in a form required by the system of the service and compensation received; (iii) 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. The member may purchase all of the service or any portion thereof in multiples of one (1) year; and (iv) The payment shall be made in one (1) lump sum.

(1) Any county employer or municipal employer participating in the Arkansas Public Employees' Retirement System that is required by law to establish a local retirement plan for any employee shall have the option at the time of employment or at any time thereafter to provide retirement benefits for the employee under the local retirement plan or to include the employee in the Arkansas Public Employees' Retirement System. However, a municipality participating in the system or a municipality electing at some future date to participate in the system may not transfer a municipal court judge or municipal court clerk from a local plan to the system without the express permission of the affected municipal court judge or municipal court clerk.

(2) (A) The decision to enroll the employee in the system in lieu of a local retirement plan shall be made by the employer's governing body and the results certified to the Board of Trustees of the Arkansas Public Employees' Retirement System. The employer shall also certify that the employee has not received and will not be eligible to receive a benefit from a local retirement plan. (B) Upon enrollment in the system, the member may receive credit at his or her option for the service rendered in the position prior to enrollment, subject to the following conditions: (i) The member is a participating employee covered under the system at the time of the purchase; (ii) The member furnishes proof in a form required by the system of the service and compensation received; (iii) 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. The member may purchase all of the service or any portion thereof in multiples of one (1) year; and (iv) The payment shall be made in one (1) lump sum.

(A) The decision to enroll the employee in the system in lieu of a local retirement plan shall be made by the employer's governing body and the results certified to the Board of Trustees of the Arkansas Public Employees' Retirement System. The employer shall also certify that the employee has not received and will not be eligible to receive a benefit from a local retirement plan.

(B) Upon enrollment in the system, the member may receive credit at his or her option for the service rendered in the position prior to enrollment, subject to the following conditions: (i) The member is a participating employee covered under the system at the time of the purchase; (ii) The member furnishes proof in a form required by the system of the service and compensation received; (iii) 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. The member may purchase all of the service or any portion thereof in multiples of one (1) year; and (iv) The payment shall be made in one (1) lump sum.

(i) The member is a participating employee covered under the system at the time of the purchase;

(ii) The member furnishes proof in a form required by the system of the service and compensation received;

(iii) 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. The member may purchase all of the service or any portion thereof in multiples of one (1) year; and

(iv) The payment shall be made in one (1) lump sum.

Acts 1991, No. 851, §§ 1-6; 1992 (1st Ex. Sess.), No. 71, § 1; 1995, No. 1256, § 20; 1995 (1st Ex. Sess.), No. 13, § 4; 1999, No. 1066, § 4.
Ark. Code Ann. § 24-2-801 — AR Code / Title 24 / Chapter 2 / Subchapter 8 / Section 24-2-801
Title
Status: in_force

This subchapter shall be known and may be cited as the "State Government Employee Retirement Protection Act". Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.

This subchapter shall be known and may be cited as the "State Government Employee Retirement Protection Act".

Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Ark. Code Ann. § 24-4-609 — AR Code / Title 24 / Chapter 4 / Subchapter 6 / Section 24-4-609
Effective date of benefits - Survivors and beneficiaries
Status: in_force

(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. Amended by Act 2023, No. 247,§ 3, eff. 7/1/2023. Acts 1977, No. 663, § 2; A.S.A. 1947, § 12-2511.17.

(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.

Amended by Act 2023, No. 247,§ 3, eff. 7/1/2023.

Acts 1977, No. 663, § 2; A.S.A. 1947, § 12-2511.17.
Ark. Code Ann. § 24-11-209 — AR Code / Title 24 / Chapter 11 / Subchapter 2 / Section 24-11-209
[Repealed]
Status: repealed

Repealed by Act 2013, No. 41,§ 6, eff. 2/6/2013. Acts 1995, No. 1266, § 3; 2011, No. 979, § 3.

Repealed by Act 2013, No. 41,§ 6, eff. 2/6/2013.

Acts 1995, No. 1266, § 3; 2011, No. 979, § 3.