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(a) As used in this section, “out-of-state service” means service rendered in any state except Arkansas in a position that would have been covered by the Arkansas Teacher Retirement System had the service been actual service covered by the system if rendered in the state.
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(b) Out-of-state service purchased before July 1, 1987, shall be credited as service under this section in accordance with provisions in force before July 1, 1987.
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(c) From and after July 1, 1987, an active member shall be eligible to establish out-of-state service to be credited as service under this subchapter under the following conditions:
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(1)
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(A) The out-of-state service credit to be granted shall be limited to service for which no benefit could be paid by another system similar in purpose to this system, except Social Security, if the member had left on deposit his or her contributions to the other system.
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(B) The credit under subdivision (c)(1)(A) of this section is limited to fifteen (15) years;
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(2)
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(A) The member shall pay to the system for each year of service credit granted the actuarial equivalent of the member’s benefits.
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(B) The payment shall be credited to the member’s account in the members’ deposit account and shall be in addition to regular member contributions thereto;
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(3)
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(A) The out-of-state service shall not become credited service under this system until the member has established five (5) or more years of actual service.
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(B) If a member ceases to be an active member before the out-of-state service has been established as system-credited service, the member payments made under this section shall be refundable;
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(4) The benefit program to be applied to each year of service credit being granted shall be the benefit program in effect at the time of retirement; and
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(5) Such other rules consistent with this subchapter as the Board of Trustees of the Arkansas Teacher Retirement System may from time to time adopt.
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(d) An active member may purchase a fraction of a year of out-of-state service to be credited as service under this subchapter in the same manner as provided for out-of-state service under subsection (c) of this section if the service meets the following requirements:
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(1) The member has not less than one-fourth (¼) year of out-of-state credited service in the fiscal year; and
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(2) The fraction of a year of out-of-state service may be credited in keeping with policies of the board under § 24-7-601.
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(e) An active member shall be eligible, upon application, to purchase service rendered outside the state during a period of employment with an education coordinating council to be credited as out-of-state service under the provisions of this section, provided that the conditions of subsection (c) of this section are met.
