§ 24-10-611. Termination of covered employment

(a) A member who terminates covered employment before attaining his or her normal retirement age, for a reason other than death, early retirement, or disability retirement, shall be entitled to an annuity computed in accordance with the provisions of this section, as it provides at the time of the last termination of covered employment, subject to the member’s satisfying all of the following conditions:

1. (1)

   1. (A) The member has five (5) years of credited service.

   2. (B) A member hired on or after July 1, 2013, shall accrue ten (10) years of actual service in order to be eligible for retirement;

2. (2) The member lives to his or her annuity starting date;

3. (3) The member makes proper application for retirement and payment of the annuity to the Arkansas Local Police and Fire Retirement System not less than thirty (30) days nor more than ninety (90) days before the date he or she attains his or her normal retirement age; and

4. (4) The annuity starting date shall be the first day of the calendar month next following the later of:

   1. (A) The date the member attains his or her normal retirement age; and

   2. (B) The date the proper application is received by the system.

(b)

1. (1) The monthly amount of a vested termination annuity shall be computed in the same manner as a normal annuity amount provided for in § 24-10-602, but based upon his or her credited service and final average pay at the time of termination of covered employment.

2. (2) If the effective date of the annuity is at least twelve (12) full months after termination, an amount of final average pay usable for the purposes of this section shall be redetermined.

3. (3)

   1. (A) The redetermined amount shall be the amount of final average pay at the time of termination of covered employment increased by one-half (½) of any percentage increase in the inflation index for the period from three (3) months immediately preceding the termination to three (3) months immediately preceding the annuity effective date.

   2. (B) For an annuity with an effective date that is on or after July 1, 2019, the pay used for the annuity computation shall be the final average pay at the time of termination from paid service employment with the system.

4. (4) He or she shall have the right to elect an option provided for in § 24-10-603.