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(a)
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(1) The contributions of a member shall be five percent (5%) of the member’s annual compensation and shall be placed in the member’s deposit account as provided in § 24-4-401.
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(2) Interest shall be paid on accumulated member contributions at the rate of two percent (2%) per annum.
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(3) As used in this subsection, “compensation” has the same meaning as in § 24-4-101.
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(b)
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(1) For purposes of deferring federal and state income tax under 26 U.S.C. § 414(h)(2), as adopted by § 26-51-414, the employer shall pick up the member’s contributions to the Arkansas Public Employees’ Retirement System required by this section payable on or after July 1, 2005.
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(2)
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(A) Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of salary to a member.
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(B) The employer shall be solely responsible for remitting member contributions to the system in a manner consistent with § 24-4-202, including without limitation compliance with deadlines and penalties.
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(C) A deduction shall be made from each member’s salary equal to the amount of the member’s contribution picked up by the employer.
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(D) For all other purposes, member contributions picked up by the employer shall be considered member contributions.
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(c) Upon termination of covered service, a former member may request a refund of the former member’s accumulated contributions under § 24-4-603, except that interest will be credited on all balances for service through the last completed fiscal year as provided in § 24-4-209(a).
