(a) As used in this section, “domestic federal service” means service rendered as a teacher or administrator in any school or similar institution located on a military base or installation that is administered by the United States Department of Defense.
(b) From and after January 1, 2003, an active member shall be eligible upon application to purchase domestic federal service to be credited as service under this section under the following conditions:
(1) The domestic federal service credit to be granted shall be limited to service for which no benefit could be paid by a retirement system similar in purpose to the Arkansas Teacher Retirement System except Social Security if the member left on deposit his or her contributions to the other system, and it shall be limited to ten (10) years;
(2)
(A) For each year of domestic federal service credit granted, the member shall pay to the system the employee and employer contributions based on the actuarial equivalent of the member's benefits.
(B) The payment is credited to the member's account in the members' deposit account and is in addition to regular member contributions;
(3) The domestic federal service shall not become credited service under this system until:
(A) The member payment under this section has been paid in full; and
(B)
(i) The member has established five (5) or more years of actual service exclusive of domestic federal service.
(ii) If a member ceases to be an active member before the domestic federal service has been established as system-credited service, the member payments contributed under this section shall be refunded to the member;
(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
(5) The other rules consistent with this section as the Board of Trustees of the Arkansas Teacher Retirement System may from time to time adopt.
(c) An active member may purchase a fraction of a year of domestic federal service to be credited as service under this subchapter in the manner as provided for domestic federal service under subsection (b) of this section if the service meets the following requirements:
(1) The member has not less than one-fourth (¼) year of domestic federal service in a fiscal year under § 24-7-601; and
(2) The fraction of a year of domestic federal service may be credited in keeping with policies as provided by § 24-7-601.
(d) However, the board shall not implement this section until the system has reduced its unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years to a level less than the standards prescribed for those public retirement systems under §§ 24-1-104 and 24-1-105.