Arkansas Administrative Code › Agency 075 - PUBLIC EMPLOYEES RETIREMENT SYSTEM › Rule 075.00.19-006 - State Police Retirement System Board Rules

Current through Register Vol. 49, No. 6, June, 2024
STATE POLICE RETIREMENT SYSTEM BOARD RULES
RULE 1 - November 1957 and June 1973 -
		  REPAYMENT OF A REFUND
When repaying a refund, the member shall pay 6% interest from the
			 date of the refund to the date of the repayment. The interest shall be
			 compounded annually.
RULE 2
		  - December 1981 - TERMINATION REFUND
Interest on contributions refunded to members shall be 3%. No
			 interest shall be credited to a member's account for fiscal years ending prior
			 to July 1, 1959. No interest shall be credited to a member with less than five
			 years of service.
RULE 3 -
		  July 1969 - ADMINISTRATION
Administrative functions and records are hereby transferred to
			 the Arkansas State (Public) Employees Retirement System. The Executive Director
			 of APERS shall be the Executive Secretary of ASPRS.
RULE 4 - April 1980 - ANNUITY PAYMENTS
Application for retirement must be received by 1st of month
			 immediately J'receding effective month of benefits. Annuities for each calendar
			 month shall be paid on the 15 of the month.
RULE 5 - March 1975 - FINAL AVERAGE SALARY
For contributory service, the exact 36 months back from the last
			 date of pay shall be used to compute the final average salary.
RULE 6 - May 1978 - PUBLIC SAFETY
All commissioned personnel are public safety as referenced in Act
			 793 of 1973.
RULE 7 -
		  August 1986, Amended - August 2005 - INVESTMENT POLICY
(Repealed by Act
		  1242 of 2009)
RULE 8 -
		  June 1988 - RETIREMENT DATE
The date of retirement shall be considered the last date of
			 employment.
RULE 9 -
		  November 1988 - APPLICATION OF AD HOC INCREASES
Absent specific direction in the law, ad hoc increases will be
			 computed after applying cost of living increases.
RULE1O - November 1993 - MILITARY SERVICE
		  CREDIT
In accordance with AC.A.
			 24-2-502,
			 a member may purchase credit for active duty military service. Active duty
			 service shall be defined as active service of 30 consecutive days. Time spent
			 in weekend drills and two week summer camp is not eligible for purchase.
RULE 11 - Amended August 1997 -
		  DEFERRED RETIREMENT OPTION PLAN In accordance with Act 967 of 1995, a member
		  who has 30 years of credited service and who is otherwise eligible for a
		  service retirement pension, full or reduced, may elect to participate in the
		  Deferred Option Plan. The member's application must be submitted on the proper
		  form and received by the administrative office of the Arkansas State Police
		  Retirement System prior to effective date of participation. The effective date
		  of participation must be the first day of a month. Upon approval by the Board
		  of Trustees, the monthly benefit that would have been payable had the member
		  retired shall be paid into the Arkansas State Police Officers' Deferred Option
		  Plan account. If Board approval occurs after the effective date requested,
		  payment shall be retroactive. This account shall earn interest in accordance
		  with the provisions of Act 967. Interest shall be credited to each individual
		  account at the end of each fiscal year.
The member must terminate his/her employment from Arkansas State
			 Police and start receiving a retirement benefit within five years of the date
			 participation begins. The amount in the Deferred Option Plan account may be
			 taken in one of the following methods:
* A lump sum
*A lifetime annuity
*A 5, 10, 15, or 20-year annuity
* A partial lump sum and the balance in a lifetime annuity or a
			 5, 10, 15, or 20-year annuity.
The monthly payment amount for an annuity will be determine by
			 the System's actuary.
The monthly retirement benefit, exclusive of the Deferred Option
			 Plan account, payable to the participant upon termination of employment with
			 the department, shall be the monthly benefit payable at the date participation
			 began in the Deferred Option Plan adjusted for any increases granted to
			 retirees during the period of participation . A member participating in the
			 Deferred Option Plan must make application for regular retirement in the method
			 required for all members of the System.
RULE 12 - May 1996 - EARNINGS LIMITAION FOR
		  NON-CONTRIBUTORY DISABILITY RETI REES
(Repealed August 2,
		  2000)
RULE 13 - July 1996
		  - DROP PARTICIPANTS CONSIDERED ACTIVE MEMBERS FOR DEATH-IN-SERVICE BENEFITS
It was not the intent of the legislation allowing the DROP plan
			 or the rule implementing this plan that DROP participants would be excluded
			 from Death-in-Service benefits. Therefore, by this action, the Board does
			 hereby designate DROP participants as active members for Death-in-Service
			 benefits. This Board action is effective with the beginning date of the DROP
			 plan.
BOARD RULE 14 - Nov. 2003 - DEFERRED RETIREMENT OPTION PLAN
			 (DROP) PROVISIONS FOR MEMBERS CALLED TO ACTIVE DUTY
Generally
a. A DROP participant who is called to active
		  duty will provide ASPRS with a copy of his/her Orders that will be maintained
		  in the member's file. A copy of the Orders will be utilized to verify the date
		  that the member is called to active duty.
b. The employer will continue to report the
		  DROP participant on the monthly DROP report. The Agency representative will
		  indicate that the member is on "Military Leave".
c. The employer will continue to pay in to
		  the System the employer contributions on behalf of the DROP
		  participant.
d. When the member is
		  released from active duty, he/she will submit a copy of the DD214 Form or other
		  appropriate documents to ASPRS to verify that the member has returned to
		  covered employment and/or been released from active duty.
Maximum Participation Period
a. A DROP participant who is on active duty
		  shall continue to receive his/her monthly DROP payment (which includes any
		  benefit enhancements awarded to eligible retirees) until the maximum allowable
		  time in the DROP has occurred or the member requests retirement and
		  distribution of his/her DROP account, whichever occurs first.
b. Ifthe member has participated in the DROP
		  for at least three (3) years, he/she must complete a retirement application
		  packet and DROP Distribution Form(s) prior to his/her departure for active duty
		  and deliver the completed forms to the ASPRS Office along with a copy of
		  his/her Orders. The retirement application and DROP Distribution Forms will be
		  held and processed on the effective date indicated unless he/she returns to
		  covered employment within the five (5) year DROP term.
c. Should the DROP member not deliver a
		  retirement application packet and DROP Distribution Form(s) to ASPRS and the
		  maximum period of DROP participation (5 years) expires prior to the member
		  returning to covered employment and/or requesting retirement:
1. the monthly DROP accrual will cease on the
		  fifth anniversary of the member's beginning DROP date and no additional
		  interest will be paid;
2. the
		  monthly retirement benefit will not become effective until the member files a
		  completed retirement application and complies with applicable deadlines; and
		  the DROP account balance shall be distributed upon the member's filing of the
		  required DROP Distribution Form(s).
Death While on Active Duty
a. In the event a DROP participant on active
		  duty dies during the period of DROP participation, a lump-sum payment equal to
		  the account balance of the participant shall be paid to the participant's
		  survivor.
b. If survivor benefits
		  are payable in accordance with A.C.A.
		  24-6-217
		  and
		  24-6-508,
		  the surviving spouse (who has been married to the participant for at least one
		  year), dependent children or dependent parents will receive monthly benefits.
Becoming Eligible For DROP Participation While On Active
			 Duty
If a member becomes eligible to participate in the DROP while on
			 active duty, he/she will be placed in the plan retroactive to the date of
			 initial eligibility providing the application is received within one (1) month
			 of the member returning to covered employment. Such participation will also be
			 contingent upon the necessary employee (if applicable) and employer
			 contributions being made to the System for the period of active duty prior to
			 the employee entering the DROP.
Reemployment
After release from active duty, should a DROP member fail to
			 apply for reemployment or fail to accept reemployment pursuant to the
			 provisions of
			 38
			 U.S.C. §
									4312 as amended, the employer
			 shall promptly notify ASPRS. After notice to the member and opportunity for
			 hearing, should ASPRS determine that the member failed to apply for or accept
			 reemployment as provided above, ASPRS shall:
a. determine that the member's retirement
		  application and DROP distribution form required under Maximum Participation
		  Period, subparagraph b are void as of the date of the member's release from
		  active duty;
b. terminate payments
		  of the deferred benefit into the member's DROP account
c. deduct any payments of the deferred
		  benefit into the member's DROP account after date of the member's release from
		  active duty and interest thereon and pay said amount of the deferred benefit
		  without interest thereon to the member as accumulated monthly annuity payments
		  upon the member's filing a completed retirement application and DROP
		  Distribution Form in compliance with applicable deadlines;
d. not pay interest on the member's DROP
		  account after the date of the member's release from active duty and hold said
		  account balance pending the member's filing of the DROP Distribution
		  Forms.
e. pay the member's monthly
		  retirement annuity to the member upon his/her filing a completed retirement
		  application and in compliance with applicable deadlines.
Procedures Applicable to DROP/Active Duty Issues
a. The Executive Secretary shall determine
		  all issues of interpretation or implementation of this rule in regard to DROP
		  members and active military duty and shall conduct any hearings provided for
		  herein or required by other law.
b.
		  If the member is not satisfied with the Executive Secretary's decision on
		  matters that were not decided in conjunction with a hearing, the member may
		  request that the issue be presented to the Board. The Board shall review the
		  member's request for review, the record considered by the Executive Secretary
		  and the Executive Secretary's decision, shall afford the member the opportunity
		  to present additional information or documentation and to appear before the
		  Board, and determine whether to affirm or modify the Executive Secretary's
		  decision or to return the case to the Executive Secretary for further
		  consideration.
c. A member who was
		  a party to a hearing by the Executive Secretary concerning DROP/active duty
		  issues and who is not satisfied with the Executive Secretary's decision, may
		  file an appeal to the Board. The member shall file notice of appeal in writing,
		  stating the grounds therefore, with the Executive Secretary on or before thirty
		  (30) days following the date of record of the Executive Secretary's decision.
		  The Executive Secretary's written decision shall be mailed to the member by
		  certified mail, return receipt requested, restricted delivery to the member's
		  last known address of record.
d.
		  Upon appeal, the review by the board shall be confined to the record considered
		  by the Executive Secretary; provided, however:
1. The member may apply to present additional
		  evidence and should the Board find that the evidence is material and that there
		  were good reasons for failure to present it in the proceeding before the
		  Executive Secretary, the Board may order that the additional evidence be taken
		  before the Executive Secretary upon any conditions that may be just. The
		  Executive Secretary may modify the findings and decision by reason of the
		  additional evidence and shall file that evidence and any modification, new
		  findings or decisions with the Board;
2. Should the member assert any alleged
		  irregularity in procedure before the Executive Secretary not shown in the
		  record, the Board may hear testimony on that issue or in its discretion may
		  remand the matter to the Executive Secretary to conduct further proceedings on
		  the record on the member's allegation of procedural irregularity; after any
		  further proceeding by the Executive Secretary regarding any procedural
		  irregularity, the Executive Secretary may modify the findings and decision by
		  reason of the additional evidence and shall file that evidence and any
		  modifications, new findings, or decisions with the Board.
3. The member may request the opportunity to
		  make an oral presentation to the Board.
e. The Board may affirm or reverse the
		  Executive Secretary's decision or remand the case for further proceedings.
BOARD RULE 15 -May 2004 -Qualified Domestic Relations Orders
			 (QDRO's) In accordance with Act 1143 of 1993, the Arkansas State Police
			 Retirement System (ASPRS) will comply with Qualified Domestic Relations Orders
			 (QDRO's) issued by Chancery Courts in the State of Arkansas that meet the
			 following conditions:
1. The QDRO is
		  issued in accordance with all provisions of the model QDRO adopted by the ASPRS
		  Board of Trustees.
2. The QDRO, as
		  specified in Section 1. (3)(c) of Act 1143, does not require ASPRS to provide
		  any type or form of benefit, or pay options not otherwise available under the
		  Plan, does not require the Plan to provide increased benefits, and does not
		  require the payment of benefits to an alternate payee which are required to be
		  paid to another alternate payee under another Order previously determined to be
		  a Qualified Domestic Relations Order.
3. The QDRO is issued on or after the
		  effective date of Act 1143 of 1993.
4. The System will review QDRO's for
		  compliance with this rule and notify appropriate parties of its
		  findings.
5. Payments to the
		  alternate payee shall commence on the earlier event:
(1) ceases employment in a covered position
		  and requests a refund of contributions;
(2) when the participating member begins
		  participation in the Deferred Retirement Option Plan (DROP); or,
(3) when the participating member retires.
In those instances where the alternate payee selects alternative
			 B. under Section III. (Duration of Payments to Alternate Payee) of the model
			 QDRO, the actuary will use the following guidelines in computing an equivalent
			 benefit to be paid for the alternate payee's lifetime:
1. The interest rate will be the valuation
		  rate.
2. The Mortality Table will
		  be the "50/50 Table".
3. The age
		  used in the computation shall be the attained age at the last birth date prior
		  to the effective date of the QDRO.