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(a) An active member of the Arkansas Local Police and Fire Retirement System may purchase credited service in the system equivalent to a period not to exceed five (5) years for service rendered by the member while on active duty in the United States Armed Forces before the member’s employment covered by the system, if the member:
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(1) Received an honorable discharge from the armed forces;
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(2)
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(A) Has at least five (5) years of actual service in the system.
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(B) A member hired on or after July 1, 2013, shall accrue ten (10) years of actual service in order to be eligible for purchase under this section; and
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(3)
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(A) Contributes to the system an amount that is the actuarial equivalent of the value of the credited service to be purchased.
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(B) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the system.
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(b) The Board of Trustees of the Arkansas Local Police and Fire Retirement System shall make the final determination as to the:
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(1) Length of purchased service credit;
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(2) Amount of regular interest to be charged; and
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(3) Manner in which payment is made to the system.
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(c) Service credit purchased under this section shall be used to determine the member’s total credited service under the system but shall not be used to determine his or her final average pay under the system.
