Each political subdivision of the state is authorized to submit for approval by the Arkansas Public Employees’ Retirement System a plan for extending the benefits of Title II of the Social Security Act, 42 U.S.C. § 301 et seq., 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 if it finds that the plan, or plan as amended, is in conformity with such requirements as are provided in rules of the system, except that no plan shall be approved unless:
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(1) It is in conformity with the requirements of the Social Security Act, 42 U.S.C. § 301 et seq., and with the Section 218 agreement entered into under § 24-1-204;
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(2) It provides that all services which constitute employment as defined in § 24-1-202 and are performed by the employees of a political subdivision shall be covered by the plan;
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(3) It specifies the sources from which the funds necessary to make the payments required by § 24-1-208(a)(1) and § 24-1-208(b) are expected to be derived and contains reasonable assurance that the sources will be adequate for that purpose;
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(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 of the plan; and
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(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 Commissioner of Social Security may find necessary from time to time to assure the correctness and verification of reports.