Arkansas Administrative Code › Agency 088 - Arkansas Teacher Retirement System › Rule 088.00.10-001 - Policy 8-2 -REFUNDS OF MEMBER CONTRIBUTIONS

Current through Register Vol. 49, No. 6, June, 2024
DEFINITIONS
1.
Accumulated Contributions
-
		  The total of all amounts contributed by a member and standing to his/her credit
		  in the individual account in the member's deposit account, together with
		  regular interest credited thereon.
2.
Regular Interest
means such
		  rate or rates per annum, compounded annually, as the Board shall from time to
		  time adopt that ATRS uses to compute interest on a member's contributions.
RULES
1. Should an overpayment of contributions of
		  less than $25.00 be reported from the local level, no refund of this amount
		  will be made to the member, except upon the written request from the member.
		  The total amount reported by the employing authority shall be credited to
		  contributions.
2. On refunded
		  contributions, the rate for all interest credited before June 30, 1984, is 3%,
		  compounded annually, after the first year of contributions. The rate of
		  interest credited on June 30, 1984 through June 30, 2009, is 6%, compounded
		  annually, after the first year of contributions. Beginning June 30, 2010, the
		  interest rate shall be 2%, compounded annually after the first year of
		  contributions. Interest shall be computed on each member's individual account
		  as of June 30 each year by multiplying the balance in the member's individual
		  account as of July 1 (including all contributions and interest credit from
		  previous years) plus one-half (1/2) of the contributions for the year ending on
		  June 30 by the annual applicable interest percentage rate.
3. Interest is not paid on contributions made
		  in the year in which a refund is paid.
4. The Board of Trustees shall set the rate
		  of interest from time to time based on the reports of the actuary and the
		  investment counsel.
5. Any members
		  receiving a refund who have previously received a refund and repaid the
		  contributions shall be refunded the 6% purchased interest paid on such refund.
		  This same policy shall be applicable to interest paid on purchase of in-state
		  service, out-of-state service, and military service.
6. Effective May 19, 1992, refunds of
		  contributions will be made within six (6) months from the date of receipt of
		  the written application in the Teacher Retirement System office.
7. Certification of the amount of
		  contributions to be refunded may be made to a lending agency (bank, etc.) upon
		  the written request of a member. Refunds must be made to the member as payee,
		  but may be sent to the lending agency if authorized by the member. Employers
		  are responsible for the accuracy of information on salaries and contributions
		  that they certify to the ATRS on refund applications. If information certified
		  by an employer causes the ATRS to overpay a refund, and if the ATRS is unable
		  to secure reimbursement of the overpayment from the member receiving the
		  refund, the employer shall reimburse the ATRS the amount of such
		  overpayment.
8. A refund of
		  contributions forfeits credited military service. Repayment of the refund plus
		  interest reestablishes the forfeited military service. If military service was
		  not credited to a member prior to refund of the contributions, repayment of the
		  refund is not necessary to establish military service credit, provided the
		  member meets the requirements listed above.
9. Beginning January 1, 1993, should a
		  member, or spouse if the member is deceased, become eligible to receive a
		  refund of contributions and elect to make a direct rollover of a distribution
		  to an eligible retirement plan of all or part of the eligible rollover
		  distribution, the amount shall be paid to the trustee of the eligible
		  retirement plan.
Amended:
July 18, 2005
February 1, 2010 under emergency rules.
June 7, 2010 Permanent