Table Of Content

Arkansas Code OF 1987 Annotated SUPPLEMENT 2011 VOLUME 25A Place in pocket of bound volume Prepared by the Editorial Staffofthe Publisher Under the Direction and Supervision ofthe ARKANSAS CODE REVISION COMMISSION Senator David Johnson,C7mir Senator Sue Madison Representative John Vines Representative Darrin Williams Honorable Bettina E. Brownstein Honorable Don Schnipper Honorable David R. Matthews Honorable Stacy Leeds, Dean, University ofArkansas at Fayetteville, School ofLaw Honorable John DiPippa, Dean, University ofArkansas at Little Rock, School ofLaw Honorable Warren T. Readnour, SeniorAssistantAttorney General Honorable Marty Garrity, Assistant Director for Legal Services of the Bureau ofLegislative Research LexisNexis@ Copyright © 2001, 2003, 2005, 2007, 2009, 2011 BY The State ofArkansas All Rights Reserved LexisNexis andthe KnowledgeBurstlogo areregisteredtrademarks, and Michieis atrademark ofReedElsevierPropertiesInc. usedunderlicense. MatthewBenderisaregisteredtrademarkof Matthew BenderProperties Inc. For information about this Supplement, see the Supplementpamphlet for Volume 1 5051619 ISBN 978-0-327-10031-7 (Code set) ISBN 978-0-327-10197-0 (Volume 25A) LexisNexis* Matthew Bender & Company, Inc. 701 East Water Street, Charlottesville, VA 22902 www.lexisnexis.com (Pub.40604) TITLE 24 RETIREMENT AND PENSIONS (CHAPTERS 9-12 IN VOLUME 25B) CHAPTER GENERAL PROVISIONS. 1. PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY. 2. — UNIFORM BENEFITS FINANCING, ACCOUNTING, AND REPORTING 3. STANDARDS. [REPEALED.] ARKANSAS PUBLIC EMPLOYEES' RETIREMENT SYSTEM. 4. ARKANSAS STATE HIGHWAY EMPLOYEES' RETIREMENT. 5. STATE POLICE RETIREMENT. 6. 7. RETIREMENT OF EMPLOYEES OF SCHOOLSAND EDUCATIONAL INSTI- TUTIONS. RETIREMENT OF JUDGESAND COURT EMPLOYEES. 8. CHAPTER 1 GENERAL PROVISIONS subchapter 1. General Provisions. 2. Public Employees' Social Security. — Subchapter 1 General Provisions SECTION. SECTION. 24-1-106. Benefit enhancements. 24-1-108. Effect of concurrent employ- 24-1-107. Recognition of federal retirement—on a member's ben- ment programs. efits Notice. Effective Dates. Acts 2011, No. 69, inconsistent with the prudent manage- § 22: July 1, 2011. Emergencyclausepro- ment of the system's funds and obliga- vided: "It is found and determined by the tions; that the purchase of service credit General Assembly ofthe State ofArkan- in the system should be based upon actu- sas that certain provisions ofthe Arkan- arial equivalents; that the purchase of sas Teacher Retirement System statutes service credit should be paid in a lump are in urgent need of revision to bring sum to the system; that current service them into conformance with sound public purchase accounts remain unpaid and in- pension policy; that this revision is of activeformanyyears atatimeandcreate great importance to members of the Ar- an administrative burden and accounting kansasTeacherRetirementSystemandto difficulty on the system that can be rem- other citizens of the State of Arkansas; edied by the passage ofthis act; and that thatamember'spurchaseofservicecredit this act is necessary in order to maintain currentlyprovides that a memberpaythe anorderlysystemofbenefitsforthemem- systemyesterday's dollars forthevalue of bers oftheArkansas Teacher Retirement today's benefits; that such a valuation is System. Therefore, an emergency is de- unfair to the members as a whole and clared to exist and this act being neces- 24-1-106 RETIREMENTAND PENSIONS sary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011." 24-1-106. Benefit enhancements. (a) No benefit enhancement provided for by §§ 24-2-302, 24-2-306, 24-2-401, 24-2-402, 24-2-501, 24-3-102 [Repealed], 24-3-106 [Repealed], 24-3-201 [Repealed], 24-3-208 [Repealed], 24-3-209 [Repealed], 24-3- 301 [Repealed], 24-3-303 [Repealed], 24-3-304 [Repealed], 24-4-101 [Repealed], 24-4-106 [Repealed], 24-4-107 [Repealed], 24—-4-301 [Re- pealed], 24-4-507, 24-4-508, 24-4-510, 24-4-511, —24-4-518 24-4-520, 24-4-601, 24-4-608, 24-4-618, 24-4-710, 24-4-745 24-4-747, 24-4-801, 24-4-803,—24-5-112, 24-5-119, 24-5-125, 24-5-133, 24-5-204, 24-6-219, 24-6-403 24-6-406, 24-6-410, 24-6-411, 24-7-202, 24-7-209, 24-7-301, 24-7-406, 24-7-504 [Repealed], 24-7-603, 24-7-604, 24-7-606, 24-7-607, 24-7-702, 24-7-705, 24-7-706, 24-7-708, 24-7-713(b), 24—-7-720, 24-7-727, 24-7-728, 24-7-72—9, 24-7-1314, 24-7-1315—, 24-7-1401 24-7-1409, 24- 8-223, 24-8-226— 24-8-228, 24-8-701 24-8-717, 24-10-102, 24-10- 303, 24-10-504 24-10-509, 24-10-602, 24-10-611, 24-10-613, 24-11- 425, 24-11-434, 24-11-437, 24-11-438, 24-11-805, 24-11-818, and 24-11- 833 shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization. (b) No benefit enhancement provided for by §§ 24-2-302, 24-2-306, 24-2-401, 24-2-402, 24-2-501, 24-3-102 [Repealed], 24-3-106 [Repealed], 24-3-201 [Repealed], 24-3-208, 24-3-209 [Repealed], 24-3-301 [Re- pealed], 24-3-303 [Repealed], 24-3-304 [Repealed], 24-4-101 [Repealed], 24-4-106, 24-4-107 [Repealed]—, 24-4-301 [Repealed], 24-4-507, 24-4-508, 24-4-510, 24-4-511,—24-4-518 24-4-520, 24-4-601, 24-4-608, 24-4-618, 24-4-710, 24-4-745 24-4-747, 24-4-801, 24-4-80—3, 24-5-112, 24-5-119, 24-5-125, 24-5-133, 24-5-204, 24-6-219, 24-6-403 24-6-406, 24-6-410, 24-6-411, 24-7-202, 24-7-209, 24-7-301, 24-7-406, 24-7-504 [Repealed], 24-7-603, 24-7-604, 24-7-606, 24-7-607, 24-7-702, 24-7-705, 24-7-706, 24-7-708, 24-7-713(b), 24-7-—720, 24-7-727, 24-7-728, 24-7-729—, 24-7- 1314, 24-7-1315—, 24-7-1401 24-7-1409, 24-8-223, 24-8-226— 24-8- 228, 24-8-701 24-8-717, 24-10-102, 24-10-303, 24-10-504 24-10- 509, 24-10-602, 24-10-611, 24-10-613, 24-11-425, 24-11-434, 24-11-437, 24-11-438, 24-11-805, 24-11-818, and 24-11-833 shall be implemented by any publicly supported system which has unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years until the unfunded actuarial accrued liabilityis reduced to alevel less than the standards prescribed by § 24-1-101 et seq. History. Acts 1999, No. 11, § 3; 1999, § 2; 1999, No. 312, § 2; 1999, No. 325, No. 29, § 2; 1999, No. 30, § 2; 1999, No. § 13; 1999, No. 335, § 2; 1999, No. 387, 81, § 3; 1999, No. 104, § 3; 1999, No. 110, § 8; 1999, No. 388, § 2; 1999, No. 395, § 3; 1999, No. 221, § 2; 1999, No. 311, § 3; 1999, No. 396, § 4; 1999, No. 399, GENERAL PROVISIONS 24-1-107 § 5; 1999, No. 400, § 2; 1999, No. 404, 1999, No. 903, § 2; 1999, No. 907, § 2; 1999, No. 496, § 5; 1999, No. 535, 1999, No. 955, § 2; 1999, No. 978, § 2; 1999, No. 537, § 7; 1999, No. 555, 1999, No. 1010, § 3; 1999, No. 1067, § 13; 1999, No. 627, § 4; 1999, No. 705, 1999, No. 1070, § 6; 1999, No. 1171, § 2; 1999, No. 706, § 2; 1999, No. 710, 1999, No. 1325, § 9; 1999, No. 1450, § 2; 1999, No. 715, § 2; 1999, No. 716, 1999, No. 1453, § 4; 1999, No. 1455, § 3; 1999, No. 863, § 2; 1999, No. 864, 1999, No. 1458, § 3; 1999, No. 1459, § 2; 1999, No. 865, § 7; 1999, No. 866, 1999, No. 1460, § 2; 1999, No. 1521, § 8; 1999, No. 868, § 4; 1999, No. 869, 1999, No. 15a7, § 2; 1999, No. 1590, § 2; 1999, No. 870, § 2; 1999, No. 883, 2003, No. 347, § 2. § 2; 1999, No. 884, § 2; 1999, No. 901, 24-1-107. Recognition of federal retirement programs. (a)(1) The Board of Trustees of the Arkansas Public Employees' Retirement System and the Board ofTrustees oftheArkansas Teacher Retirement System shall establish policies and promulgate rules to recognize the service credit for members of the Arkansas Public Employees' Retirement System and the Arkansas Teacher Retirement System earned in the retirement systems offederal government agencies. (2) Aformer federal employee who becomes a member oftheArkan- sas Public Employees' Retirement System or the Arkansas Teacher Retirement System shall receive service credit for the member's service with the federal retirement system as prescribed by the Board of Trustees oftheArkansas Public Employees' Retirement System andthe Board ofTrustees ofthe Arkansas Teacher Retirement System. (b)(1)(A) An active member of the Arkansas Public Employees' Re- tirement System shall receive credit for the member's federal service upon the payment of the employee and employer contributions prescribed by the Board ofTrustees ofthe Arkansas Public Employ- ees' Retirement System together with interest from the date the federal service began to the date ofpayment. (B) An active member oftheArkansas Teacher Retirement System shall receive credit for the member's federal service upon the payment ofthe cost ofservice under § 24-7-502(b) and as prescribed by the Board ofTrustees ofthe Arkansas Teacher Retirement System. (2) The Board ofTrustees oftheArkansas Public Employees' Retire- ment System and the Board of Trustees of the Arkansas Teacher Retirement System shall determine what constitutes a year offederal service credit. (3) The member may qualify for age and service retirement in the Arkansas Public Employees' Retirement System or the Arkansas Teacher Retirement System using the federal credited service plus the member's credited service from employment from the state employers to meet the minimum service requirements of the Arkansas Public Employees' Retirement System and the Arkansas Teacher Retirement System. (c) The Board ofTrustees oftheArkansas Public Employees' Retire- ment System and the Board of Trustees of the Arkansas Teacher 24-1-108 RETIREMENTAND PENSIONS 4 Retirement System shall promulgate rules necessary for the effective administration ofthis section. (d) The member shall certify in a manner prescribed by the Board of Trustees oftheArkansas Public Employees' Retirement System andthe Board ofTrustees oftheArkansas Teacher Retirement System that the member is not eligible to receive a retirement benefit from the federal retirement system in which he or she had previously been a member. History. Acts 2005, No. 2091, § 1; tern" preceding "shall receive credit" and 2011, No. 69, § 1. deleted "and the Board ofTrustees ofthe Amendments. The 2011 amendment Arkansas Teacher Retirement System" added (b)(1)(B); and, in (b)(1)(A), deleted preceding "together with interest." "ortheArkansasTeacherRetirementSys- 24-1-108. Effect of concurrent employment on a member's ben- — efits Notice. (a) The purpose ofthis section is to provide notice to an applicant for concurrent employment in a public employee position that the concurrent employment might affectthe employee's retirementbenefits and to allow the employee and employer an opportunity to consider an alternative method of employment that would allow an enhanced retirement benefit for the prospective employee. (b) If an applicant for concurrent employment in a public employee position provides information to a prospective public employer that the applicant is a current public employee and is enrolled as a member ofa reciprocal system, then the prospective employer shall notify the applicant that it may be in the applicant's best interest to contacthis or her current retirement system regarding the legal status ofretirement benefits that may result ifthe applicant is employed by two (2) or more state-supported retirement systems. (c) The failure of a state-supported retirement system to notify a prospective employee under this section does not create a legal obliga- tion on behalfofthe state-supported retirement system or a legal right on behalfofthe prospective employee. History. Acts 2009, No. 1280, § 1. — Subchapter 2 Public Employees' Social Security SECTION. SECTION. 24-1-201. Declaration ofpolicy. 24-1-206. Agents. — 24-1-202. Definitions. 24-1-207. Contributions State employ- 24-1-203. Rules and regulations. ees. — 24-1-204. Agreements with federal gov- 24-1-208. Contributions Employees of ernment and other states. — political subdivisions. 24-1-205. Plans for employees ofpolitical 24-1-209 24-1-212. [Repealed.] subdivisions. 24-1-213. Studies and reports. 5 GENERAL PROVISIONS 24-1-202 24-1-201. Declaration of policy. In order to extend to employees of the State of Arkansas and its political subdivisions and the employees' dependents and survivors the basic protection accorded to others bythe federal old age, survivors' and disability insurance, and health insurance coverage embodied in the Social Security Act, it is declared to be the policy of the State of Arkansas, subject to the limitations of this subchapter, that steps be taken to provide protection to employees of the state and its political subdivisions in compliance with the provisions of the Social Security Act. History.Acts 1951,No. 248, § 1;A.S.A. referredtointhis section, is codifiedas42 1947, § 12-2401;Acts 2005, No. 100, § 1. U.S.C. § 301 et seq. U.S. Code. The Social Security Act, 24-1-202. Definitions. As used in this subchapter: (1) "Commissioner ofSocial Security" means any individual to whom the commissioner has delegated any ofhis or her functions under the Social SecurityActwith respect to coverage underthat act ofemployees ofthe state and its political subdivisions; (2) "Employee" means an officer or an employee of the state or a political subdivision of the state. All public employees of the State of Arkansas and its political subdivisions, for social security purposes, shall be deemed employees of the paying political entity for which services are rendered, which entity shall be the proper agency for makingthe deductions, matching contributions, and report required by this subchapter; (3) "Employer" means the State ofArkansas and its political subdivisions; (4) "Employment" means any service performed by an employee in the employ ofthe state or anypolitical subdivision ofthe state forhis or her employer except: (A) Services which, in the absence of any agreement entered into under this subchapter, would constitute employment as denned in the Social Security Act; or (B) Services which, under applicable federal law, may not be included or may have been voluntarily excluded in an agreement between the state and the commissioner entered into under this subchapter; (5) "Modification" means an amendment to the original federal-state agreement to extend coverage to groups ofadditional employee classi- fications consistent with the provisions of section 218 of the Social Security Act and this subchapter; (6) "Political subdivision" means an instrumentality of the state, of one (1) or more ofits political subdivisions, or ofthe state and one (1) or more of its political subdivisions, but only if its instrumentality is a juristic entity which is legally separate and distinct from the state or 24-1-203 RETIREMENTAND PENSIONS 6 subdivision and only ifits employees are not, by virtue oftheir relation to the juristic entity, employees ofthe state or subdivision; (7) "Section 218 agreement" means the federal-state agreement between the commissioner and the State of Arkansas entered into December 20, 1951, as authorized by the Social Security EnablingAct for the purpose of extending coverage under Title II of the Social Security Act; (8) "Social SecurityAct" means theAct ofCongress approvedAugust 14, 1935, Chapter 531, 49 Stat. 620, officially cited as the "Social Security Act", as amended, including regulations and requirements issued pursuant thereto; (9) "State agency" means the Arkansas Public Employees' Retire- ment System; and (10) "Wages" means all remuneration for employment as defined in subdivision (4) ofthis section, includingthe cashvalue ofall remuneration paid in any medium other than cash. History.Acts 1951, No. 248, § 2; 1959, 1947, §§ 12-2402, 12-2418;Acts 1999, No. No. 237, § 1; 1965, No. 154, § 1; A.S.A. 22, § 1; 2005, No. 100, § 1. 24-1-203. Rules and regulations. TheArkansas Public Employees' Retirement System shall make and publish rules and regulations not inconsistent with the provisions of this subchapter it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this subchapter. History. Acts 1951, No. 248, § 10; A.S.A. 1947, § 12-2410; Acts 2005, No. 100, § 1. 24-1-204. Agreements with federal government and other states. (a) The Arkansas Public Employees' Retirement System is authorized to enter, on behalf of the state, into a Section 218 agreement consistent with the terms and provisions of this subchapter, with the Commissioner of Social Security for the purpose of extending the benefits ofthe federal old age, survivors' and disability insurance, and health insurance coverage to employees of the state, or any political subdivision of the state, with respect to services specified in the agreement which constitute employment as defined in § 24-1-202. This agreement may contain provisions relating to coverage, benefits, effective date, modification of the agreement, administration, and such other matters as the system and the commissioner shall agree upon, but, except as may be otherwise required by or under the Social Security Act as to the services to be covered, the agreement shall provide, in effect, that: 7 GENERAL PROVISIONS 24-1-205 (1) Benefits will be provided for employees whose services are covered by the agreement, as well as for their dependents and survivors, on the same basis as though the services constituted employment within the meaning ofTitle II ofthe Social SecurityAct; (2) The employer shall pay to the Internal Revenue Service, at such time or times as may be prescribed under the Social Security Act, contributions with respect to wages, as defined in § 24-1-202, equal to the sum ofthe taxes levied by that act; (3) All services which constitute employment as defined in § 24-1- 202 and are performed in the employ ofthe state by employees ofthe state shall be covered by the agreement; and (4) All services shall be covered by the agreement which: (A) Constitute employment as denned in § 24-1-202; (B) Are performed in the employ of a political subdivision of the state; and (C) Are covered by a plan which is in conformity with the terms of the agreement and has been approved by the system under § 24-1- 205. (b) The system is authorized to enter, on behalfofthe state, into an agreement with the appropriate agency or agencies of any other state and with the commissioner, whereby the benefits ofthe federal old age, survivors' and disability insurance, and health insurance coverage shall be extendedto employees ofanyinstrumentalityjointlycreatedby this state and any other state or states. To the extent practicable, the agreement shall be consistent with the terms and provisions ofsubsec- tion (a) ofthis section and other provisions ofthis subchapter. History. Acts 1951, No. 248, § 3; 1953, No. 410, § 1;A.S.A. 1947, § 12-2403;Acts 2005, No. 100, § 1. 24-1-205. Plans for employees of political subdivisions. Each political subdivision of the state is authorized to submit for approval by theArkansas Public Employees' Retirement System a plan for extending the benefits of Title II of the Social Security Act, in conformity with the applicable provisions of that act, to employees of the political subdivisions. Each plan, and any amendment to it, shall be approved by the system ifit finds that the plan, or plan as amended, is in conformity with such requirements as are provided in regulations of the system, except that no plan shall be approved unless: (1) It is in conformity with the requirements of the Social Security Act and with the agreement entered into under § 24-1-204; (2) It provides that all services which constitute employment as denned in § 24-1-202 and are performed by the employees ofa political subdivision shall be covered by the plan; (3) It specifies the sources from which the funds necessary to make the payments required by §§ 24-l-208(a)(l) and 24-l-208(b) are ex- 24-1-206 RETIREMENTAND PENSIONS 8 pectedtobe derived and contains reasonable assurance thatthe sources will be adequate for that purpose; (4) It provides for methods of administration of the plan by the political subdivision as are found by the system to be necessary for the proper and efficient administration ofthe plan; and (5) It provides that the political subdivision shall make reports in such form and containing such information as the system may require and shall comply with the provisions as the system or the Commis- sioner ofSocial Security may find necessaryfrom time to time to assure the correctness and verification ofreports. History.Acts 1951, No. 248, § 5;A.S.A. 1947, § 12-2405;Acts 2005, No. 100, § 1. 24-1-206. Agents. (a) For the purpose of entering into agreements with the Arkansas Public Employees' Retirement System, the following named officers are authorized and empowered to make the agreement on behalf of their agency or political subdivision: (l)(A)(i) The board of control of each state institution or agency having a board or the administrative head ofeach state department. (ii) The board ofcontrol shall have authorityto designate an agent to represent the agency over which it has control. (B) In the case of state agencies which do not have a board of control, the chief administrative officer shall act as the contracting officer for the agency; (2) The countyjudge ofeach county entering into an agreement with the system shall make and enter of record a county court order approving the agreement with the system and shall designate the county clerk as the agent ofthe county to deal with the system; (3) The city council ofeach municipality is authorized to approve the agreement with the system and shall adopt an ordinance designating the city clerk or recorder to represent the municipality; and (4) The board ofdirectors ofeach school district shall have authority to approve the agreement with the system and shall designate the county school supervisor or the local superintendent of each school district to deal with the system. (b) In complyingwiththe provisions ofthis subchapter, eachpolitical subdivision which qualifies to participate in the social security plan shall be required as a part of its agreement with the system to designate an agent to represent the political subdivision in all matters affecting the administration ofthe plan. (c) All agents provided for under the provisions of this subchapter who represent the state or a local subdivision in connection with the enforcement of this subchapter shall receive no additional remuneration or emolument oftheir offices in connection with the administration ofthis subchapter.