§ 24-10-102. Definitions

As used in this chapter:

1. (1)

   1. (A) “Accumulated contributions” means the total of all amounts contributed by a member and standing to his or her credit in his or her individual account in the Arkansas Local Police and Fire Retirement System, together with regular interest thereon.

   2. (B) Beginning July 1, 2009, accumulated contributions shall be separated into after-tax contributions and picked-up contributions under § 24-10-404(f);

2. (2) “Active member” means any member who renders actual service in a position covered by the system;

3. (3)

   1. (A) “Actual service” means service rendered in a position covered by the system.

   2. (B) “Actual service” does not mean purchased service, service under § 24-10-508, or reciprocal service;

4. (4) “Actuarial equivalent” means a benefit of equal reserve value, when “reserve” means the present value of all payments to be made on account of any benefit based upon such reasonable rates of interest and tables of experience as the system shall adopt from time to time;

5. (5)

   1. (A) “Actuary” means a qualified actuary with experience in retirement plan financing.

   2. (B) Membership in the American Academy of Actuaries shall be sufficient for a person to be deemed a qualified actuary;

6. (6) “Age” means age on last birthday;

7. (7) “Annuity” means a monthly amount payable throughout the life of a person or for a temporary period;

8. (8) “Beneficiary” means any person who is receiving or designated by a member to receive a plan benefit, except a retirant;

9. (9) “Benefit program” means a schedule of benefits or benefit formulas from which the amounts of benefits can be determined;

10. (10) “Board” means the Board of Trustees of the Arkansas Local Police and Fire Retirement System;

11. (11) “Covered employment” means employment as a police officer or firefighter in a position covered by the system;

12. (12) “Credited service” means covered employment that is creditable as service by the system and is the total of paid service and volunteer service;

13. (13)

    1. (A) “Dependent child” means a child until his or her death, his or her marriage, or his or her attainment of eighteen (18) years of age, whichever occurs first.

    2. (B)

       1. (i) The age-eighteen maximum shall be extended as long as the child continues uninterruptedly being a full-time student at an accredited secondary school, college, or university but in no event beyond the first day of the month after his or her attainment of twenty-three (23) years of age.

       2. (ii) The age-eighteen maximum shall also be extended for any child who has been deemed physically or mentally incompetent by an Arkansas court of competent jurisdiction or by the board for as long as the incompetency exists;

14. (14) “Effective date” of the system means July 1, 1981;

15. (15)

    1. (A) “Employee” means any person regularly employed by a political subdivision who receives remuneration from the political subdivision for personal services rendered as a police officer or firefighter.

    2. (B) “Employee” shall not include any person who acts for the political subdivision under contract or is paid on a fee basis.

    3. (C) “Employee” shall include any person regularly employed by the administration of the system.

    4. (D) “Employee” shall include a person who is a current active firefighter or police officer member of the Arkansas Local Police and Fire Retirement System and is an instructor at the Arkansas Fire Training Academy or the Arkansas Law Enforcement Training Academy on or after July 1, 2013;

16. (16) “Employer” means any political subdivision that has its eligible employees covered by the system or the Arkansas Local Police and Fire Retirement System as employer of its administrative staff;

17. (17)

    1. (A) “Final average pay” means the monthly average of the pays to an employee during the period of thirty-six (36) consecutive months of credited service producing the highest monthly average, but the period must be contained within the period of one hundred twenty (120) consecutive months of credited service immediately preceding his or her separation from covered employment.

    2. (B) Should a member have less than thirty-six (36) months of credited service, “final average pay” means the monthly average of pays to the member during the member’s total months of credited service.

    3. (C)

       1. (i) In any event, pays usable in determining final average pay shall be limited by the test in subdivision (17)(C)(ii) of this section, considering the final average pay period in four (4) consecutive years.

       2. (ii)

          1. (a) Pays during any twelve (12) consecutive months shall be usable only to the extent that the pays do not exceed thirty-one percent (31%) of the total pays in the final average pay period.

          2. (b) However, if the final average pay period is less than four (4) full years, the maximum usable thirty-one percent (31%) shall be increased proportionately.

    4. (D)

       1. (i) For the limited purposes of calculating final average pay for disability retirement benefits under § 24-10-607, pay shall include workers’ compensation benefits received by the member.

       2. (ii) However, the pay that is increased for any month for the limited purposes of calculating this final average pay shall not be greater than the current pay attached to the rank of the member;

18. (18)

    1. (A) “Firefighter” means any regular or permanent employee of a fire department of a political subdivision, including a probationary firefighter.

    2. (B) “Firefighter” does not include any civilian employee of a fire department or any person temporarily employed as a firefighter during an emergency;

19. (19) “General Assembly” means the General Assembly of the state;

20. (20)

    1. (A) “Inflation index” means the Consumer Price Index for Urban Wage Earners and Clerical Workers, U.S. City Average, as determined by the United States Department of Labor and in effect January 1, 1981.

    2. (B) Should the inflation index be restructured subsequent to 1980 in a manner materially changing its character, the board after receiving the advice of its actuary shall change the application of the inflation index so that, as far as is practicable, the 1980 intent of the use of the inflation index shall be continued;

21. (21) “Joint Committee on Public Retirement” means the Joint Committee on Public Retirement and Social Security Programs created by §§ 10-3-701 — 10-3-703, or any successor committee;

22. (22) “Member” means any police officer or firefighter included in the membership of the system or a person regularly employed by the administration of the system;

23. (23) “Normal retirement age” means the younger of the following ages:

    1. (A) Fifty-five (55) years of age if the member has at least twenty (20) years of credited service;

    2. (B) Sixty (60) years of age if the member has less than twenty (20) years of credited service; or

    3. (C) Any age if the member has twenty-eight (28) or more years of credited service;

24. (24) “Operative date” of the system means January 1, 1983;

25. (25) “Paid service” is covered employment that is half-time employment or more and that becomes credited service. For a calendar month in 1981 to become paid service, the police officer or firefighter shall be paid at least five hundred dollars ($500) for that month’s personal services as a police officer or firefighter. For any calendar year after 1981, the monthly minimum of five hundred dollars ($500) shall be increased by any percentage increase in the inflation index for the period from October 1980 to the October immediately preceding the calendar year;

26. (26)

    1. (A) “Pay” means the recurring remuneration paid an employee for personal services rendered by the employee in a position covered by the system and shall not exceed the amount the employee is required to report for federal income tax purposes.

    2. (B) In determining pay, consideration shall not be given to:

       1. (i) Special single-sum payments paid by an employer;

       2. (ii) Employer contributions to any employee benefit plan; or

       3. (iii) Any other unusual or nonrecurring remuneration.

    3. (C) Annual compensation in excess of the limitations under the Internal Revenue Code of 1986, 26 U.S.C. § 401(a), as it existed on January 1, 2011, shall be disregarded;

27. (27)

    1. (A) “Police officer” means any regular or permanent employee of a police department of a political subdivision, including a probationary police officer.

    2. (B) “Police officer” does not include any civilian employee of a police department or any person temporarily employed as a police officer during an emergency;

28. (28) “Political subdivision” means:

    1. (A) An incorporated town;

    2. (B) A city of the first class;

    3. (C) A city of the second class;

    4. (D) A county;

    5. (E) A fire protection district that maintains standards established by the board;

    6. (F) A rural fire protection corporation;

    7. (G) A suburban improvement district;

    8. (H) The Arkansas Fire Training Academy; and

    9. (I) The Arkansas Law Enforcement Training Academy;

29. (29) “Regular interest” means such reasonable rate or rates per annum, compounded annually, as the board shall adopt;

30. (30) “Relief fund” means:

    1. (A) Any policemen’s pension and relief fund created by state law, applicable to police officers, and covering one (1) or more persons on December 31, 1982; or

    2. (B) Any firemen’s relief and pension fund created by state law, applicable to firefighters, and covering one (1) or more persons on December 31, 1982;

31. (31) “Retirant” means a former member receiving a plan annuity by reason of having been a member;

32. (32) “Social Security” means the Social Security old age, survivors, and disability insurance program, as amended;

33. (33) “State” means the State of Arkansas and includes all of its duly constituted agencies;

34. (34) “System” means the Arkansas Local Police and Fire Retirement System created by this chapter; and

35. (35) “Volunteer service” means covered employment that becomes credited service and cannot be classified as paid service.