(a) By rule, the Board of Trustees of the Arkansas Teacher Retirement System shall fix and determine the number of years, and fraction thereof, of service to be credited each member for his or her employment as an employee.
(b)
(1) A member shall be employed by an employer covered by the Arkansas Teacher Retirement System for a minimum of one hundred sixty (160) days per fiscal year to earn one (1) year of credited service.
(2) Fractional years of service may be granted beginning July 1, 1971, as prescribed by the board.
(3) A member shall not receive more than one (1) year of service in any one (1) fiscal year.
(4)
(A) Beginning July 1, 2011, a contributory member who accrues less than one-fourth (¼) year of service credit in a fiscal year may accumulate and carry forward days of service until the first fiscal year in which the contributory member accrues the minimum days of service required to credit one-fourth (¼) year of service credit.
(B) Upon the contributing member's accruing of a minimum of one-fourth (¼) year of service credit, the:
(i) Service credit shall be applied to the latest fiscal year; and
(ii) Carry-forward days shall be reset to zero (0).
(c)
(1) Days of absence from service because of sickness shall be considered as service if the days are paid sick leave.
(2)
(A) Except as provided under subdivision (c)(2)(B) of this section, paid or unpaid accrued, unused sick leave shall not be credited as service in the Arkansas Teacher Retirement System.
(B) If a member dies during active service on or after July 1, 2013, the member's accrued unused sick leave, whether paid or unpaid, shall be credited as service in the fiscal year of the member's death to determine the member's retirement eligibility, final average salary, and eligibility for other system benefits. The member's account shall be credited with:
(i) One (1) day of service for each day of accrued unused sick leave; and
(ii) One (1) day of service for any remaining partial day of sick leave.
(C) If a member dies during active service on or after July 1, 2013, the member's unused catastrophic leave and unused donated leave shall not be credited as service.
(d) No credited service may be granted by the board for service rendered before July 1, 1937.
(e)
(1) The Arkansas Teacher Retirement System is a reciprocal system under §§ 24-2-401 — 24-2-405.
(2) In establishing eligibility for a benefit from the Arkansas Teacher Retirement System, the credited service under all reciprocal systems shall be totaled, and the total credited service shall be used in determining eligibility for an Arkansas Teacher Retirement System benefit.
(3) In determining the amount of a benefit from the Arkansas Teacher Retirement System, there shall be used only the actual service under the Arkansas Teacher Retirement System and the benefit formula of the Arkansas Teacher Retirement System.
(4) The final average salary used shall be that of the reciprocal system that furnishes the highest final average salary at the time of retirement.
(5) Beginning July 1, 2014, if the reciprocal system in which a member has service credit has fewer than the number of years of service credit required in the Arkansas Teacher Retirement System's formula for the calculation of final average salary for a member, then the Arkansas Teacher Retirement System shall obtain the salary and service credit information from the reciprocal system and use the combined salary and service credit information to calculate the member's final average salary as if the salary and service credit have all been earned in the Arkansas Teacher Retirement System.
(6) When the Arkansas Teacher Retirement System provides a benefit amount that is not dependent on length of credited service, the benefit amount shall be reduced to the proportion that actual system service bears to total reciprocal system-credited service.
(f) In any case of question as to the service credit of any person, the board shall have the final power to decide the question.
(g)
(1)
(A) Beginning July 1, 2013, the Arkansas Teacher Retirement System shall allow a member who earns concurrent service in both the Arkansas Teacher Retirement System and a reciprocal system to receive full service credit in the Arkansas Teacher Retirement System without reduction of service credit due to the concurrent service.
(B) Credited service in an alternate retirement plan or the Arkansas Public Employees' Retirement System is not allowed under subdivision (g)(1)(A) of this section.
(2) The Arkansas Teacher Retirement System shall not recognize any concurrent service added to the member's credited service in the Arkansas Teacher Retirement System that credits a member with more than one (1) year of credited service for a fiscal year or combines salary earned in both systems in a fiscal year for the purpose of:
(A) Vesting;
(B) Retirement eligibility; and
(C) Calculating final average salary.
(3) A member may elect to waive all or part of the concurrent service credited to the member in the system and retire under a reciprocal system if:
(A) The member acknowledges that the waiver is a voluntary surrender of the member's concurrent service credit in the system and cancels the member's concurrent service credit in the system; and
(B) The member's employer-accrued contributions and employee-accrued contributions in the system remain with the system.