Current through Register Vol. 49, No. 2, February 2024
RULE 1 - November 1957 and June 1973 -
REPAYMENT OF A REFUND
When repaying a refund, the member shall pay 6% interest from the
date of the refund to the date of the repayment. The interest shall be
compounded annually.
RULE 2
- December 1981 - TERMINATION REFUND
Interest on contributions refunded to members shall be 3%. No
interest shall be credited to a member's account for fiscal years ending prior
to July 1, 1959. No interest shall be credited to a member with less than five
years of service.
RULE 3 -
July 1969 - ADMINISTRATION
Administrative functions and records are hereby transferred to
the Arkansas State (Public) Employees Retirement System. The Executive Director
of APERS shall be the Executive Secretary of ASPRS.
RULE 4 - April 1980 - ANNUITY PAYMENTS
Application for retirement must be received by 1st of month
immediately J'receding effective month of benefits. Annuities for each calendar
month shall be paid on the 15 of the month.
RULE 5 - March 1975 - FINAL AVERAGE SALARY
For contributory service, the exact 36 months back from the last
date of pay shall be used to compute the final average salary.
RULE 9 -
November 1988 - APPLICATION OF AD HOC INCREASES
Absent specific direction in the law, ad hoc increases will be
computed after applying cost of living increases.
RULE1O - November 1993 - MILITARY SERVICE
CREDIT
In accordance with AC.A.
24-2-502,
a member may purchase credit for active duty military service. Active duty
service shall be defined as active service of 30 consecutive days. Time spent
in weekend drills and two week summer camp is not eligible for purchase.
RULE 11 - Amended August 1997 -
DEFERRED RETIREMENT OPTION PLAN In accordance with Act 967 of 1995, a member
who has 30 years of credited service and who is otherwise eligible for a
service retirement pension, full or reduced, may elect to participate in the
Deferred Option Plan. The member's application must be submitted on the proper
form and received by the administrative office of the Arkansas State Police
Retirement System prior to effective date of participation. The effective date
of participation must be the first day of a month. Upon approval by the Board
of Trustees, the monthly benefit that would have been payable had the member
retired shall be paid into the Arkansas State Police Officers' Deferred Option
Plan account. If Board approval occurs after the effective date requested,
payment shall be retroactive. This account shall earn interest in accordance
with the provisions of Act 967. Interest shall be credited to each individual
account at the end of each fiscal year.
The member must terminate his/her employment from Arkansas State
Police and start receiving a retirement benefit within five years of the date
participation begins. The amount in the Deferred Option Plan account may be
taken in one of the following methods:
* A lump sum
*A lifetime annuity
*A 5, 10, 15, or 20-year annuity
* A partial lump sum and the balance in a lifetime annuity or a
5, 10, 15, or 20-year annuity.
The monthly payment amount for an annuity will be determine by
the System's actuary.
The monthly retirement benefit, exclusive of the Deferred Option
Plan account, payable to the participant upon termination of employment with
the department, shall be the monthly benefit payable at the date participation
began in the Deferred Option Plan adjusted for any increases granted to
retirees during the period of participation . A member participating in the
Deferred Option Plan must make application for regular retirement in the method
required for all members of the System.
RULE 13 - July 1996
- DROP PARTICIPANTS CONSIDERED ACTIVE MEMBERS FOR DEATH-IN-SERVICE BENEFITS
It was not the intent of the legislation allowing the DROP plan
or the rule implementing this plan that DROP participants would be excluded
from Death-in-Service benefits. Therefore, by this action, the Board does
hereby designate DROP participants as active members for Death-in-Service
benefits. This Board action is effective with the beginning date of the DROP
plan.
BOARD RULE 14 - Nov. 2003 - DEFERRED RETIREMENT OPTION PLAN
(DROP) PROVISIONS FOR MEMBERS CALLED TO ACTIVE DUTY
Generally
a. A DROP participant who is called to active
duty will provide ASPRS with a copy of his/her Orders that will be maintained
in the member's file. A copy of the Orders will be utilized to verify the date
that the member is called to active duty.
b. The employer will continue to report the
DROP participant on the monthly DROP report. The Agency representative will
indicate that the member is on "Military Leave".
c. The employer will continue to pay in to
the System the employer contributions on behalf of the DROP
participant.
d. When the member is
released from active duty, he/she will submit a copy of the DD214 Form or other
appropriate documents to ASPRS to verify that the member has returned to
covered employment and/or been released from active duty.
Maximum Participation Period
a. A DROP participant who is on active duty
shall continue to receive his/her monthly DROP payment (which includes any
benefit enhancements awarded to eligible retirees) until the maximum allowable
time in the DROP has occurred or the member requests retirement and
distribution of his/her DROP account, whichever occurs first.
b. Ifthe member has participated in the DROP
for at least three (3) years, he/she must complete a retirement application
packet and DROP Distribution Form(s) prior to his/her departure for active duty
and deliver the completed forms to the ASPRS Office along with a copy of
his/her Orders. The retirement application and DROP Distribution Forms will be
held and processed on the effective date indicated unless he/she returns to
covered employment within the five (5) year DROP term.
c. Should the DROP member not deliver a
retirement application packet and DROP Distribution Form(s) to ASPRS and the
maximum period of DROP participation (5 years) expires prior to the member
returning to covered employment and/or requesting retirement:
1. the monthly DROP accrual will cease on the
fifth anniversary of the member's beginning DROP date and no additional
interest will be paid;
2. the
monthly retirement benefit will not become effective until the member files a
completed retirement application and complies with applicable deadlines; and
the DROP account balance shall be distributed upon the member's filing of the
required DROP Distribution Form(s).
Death While on Active Duty
a. In the event a DROP participant on active
duty dies during the period of DROP participation, a lump-sum payment equal to
the account balance of the participant shall be paid to the participant's
survivor.
b. If survivor benefits
are payable in accordance with A.C.A.
24-6-217
and
24-6-508,
the surviving spouse (who has been married to the participant for at least one
year), dependent children or dependent parents will receive monthly benefits.
Becoming Eligible For DROP Participation While On Active
Duty
If a member becomes eligible to participate in the DROP while on
active duty, he/she will be placed in the plan retroactive to the date of
initial eligibility providing the application is received within one (1) month
of the member returning to covered employment. Such participation will also be
contingent upon the necessary employee (if applicable) and employer
contributions being made to the System for the period of active duty prior to
the employee entering the DROP.
Reemployment
After release from active duty, should a DROP member fail to
apply for reemployment or fail to accept reemployment pursuant to the
provisions of
38
U.S.C. §
4312 as amended, the employer
shall promptly notify ASPRS. After notice to the member and opportunity for
hearing, should ASPRS determine that the member failed to apply for or accept
reemployment as provided above, ASPRS shall:
a. determine that the member's retirement
application and DROP distribution form required under Maximum Participation
Period, subparagraph b are void as of the date of the member's release from
active duty;
b. terminate payments
of the deferred benefit into the member's DROP account
c. deduct any payments of the deferred
benefit into the member's DROP account after date of the member's release from
active duty and interest thereon and pay said amount of the deferred benefit
without interest thereon to the member as accumulated monthly annuity payments
upon the member's filing a completed retirement application and DROP
Distribution Form in compliance with applicable deadlines;
d. not pay interest on the member's DROP
account after the date of the member's release from active duty and hold said
account balance pending the member's filing of the DROP Distribution
Forms.
e. pay the member's monthly
retirement annuity to the member upon his/her filing a completed retirement
application and in compliance with applicable deadlines.
Procedures Applicable to DROP/Active Duty Issues
a. The Executive Secretary shall determine
all issues of interpretation or implementation of this rule in regard to DROP
members and active military duty and shall conduct any hearings provided for
herein or required by other law.
b.
If the member is not satisfied with the Executive Secretary's decision on
matters that were not decided in conjunction with a hearing, the member may
request that the issue be presented to the Board. The Board shall review the
member's request for review, the record considered by the Executive Secretary
and the Executive Secretary's decision, shall afford the member the opportunity
to present additional information or documentation and to appear before the
Board, and determine whether to affirm or modify the Executive Secretary's
decision or to return the case to the Executive Secretary for further
consideration.
c. A member who was
a party to a hearing by the Executive Secretary concerning DROP/active duty
issues and who is not satisfied with the Executive Secretary's decision, may
file an appeal to the Board. The member shall file notice of appeal in writing,
stating the grounds therefore, with the Executive Secretary on or before thirty
(30) days following the date of record of the Executive Secretary's decision.
The Executive Secretary's written decision shall be mailed to the member by
certified mail, return receipt requested, restricted delivery to the member's
last known address of record.
d.
Upon appeal, the review by the board shall be confined to the record considered
by the Executive Secretary; provided, however:
1. The member may apply to present additional
evidence and should the Board find that the evidence is material and that there
were good reasons for failure to present it in the proceeding before the
Executive Secretary, the Board may order that the additional evidence be taken
before the Executive Secretary upon any conditions that may be just. The
Executive Secretary may modify the findings and decision by reason of the
additional evidence and shall file that evidence and any modification, new
findings or decisions with the Board;
2. Should the member assert any alleged
irregularity in procedure before the Executive Secretary not shown in the
record, the Board may hear testimony on that issue or in its discretion may
remand the matter to the Executive Secretary to conduct further proceedings on
the record on the member's allegation of procedural irregularity; after any
further proceeding by the Executive Secretary regarding any procedural
irregularity, the Executive Secretary may modify the findings and decision by
reason of the additional evidence and shall file that evidence and any
modifications, new findings, or decisions with the Board.
3. The member may request the opportunity to
make an oral presentation to the Board.
e. The Board may affirm or reverse the
Executive Secretary's decision or remand the case for further proceedings.
BOARD RULE 15 -May 2004 -Qualified Domestic Relations Orders
(QDRO's) In accordance with Act 1143 of 1993, the Arkansas State Police
Retirement System (ASPRS) will comply with Qualified Domestic Relations Orders
(QDRO's) issued by Chancery Courts in the State of Arkansas that meet the
following conditions:
1. The QDRO is
issued in accordance with all provisions of the model QDRO adopted by the ASPRS
Board of Trustees.
2. The QDRO, as
specified in Section 1. (3)(c) of Act 1143, does not require ASPRS to provide
any type or form of benefit, or pay options not otherwise available under the
Plan, does not require the Plan to provide increased benefits, and does not
require the payment of benefits to an alternate payee which are required to be
paid to another alternate payee under another Order previously determined to be
a Qualified Domestic Relations Order.
3. The QDRO is issued on or after the
effective date of Act 1143 of 1993.
4. The System will review QDRO's for
compliance with this rule and notify appropriate parties of its
findings.
5. Payments to the
alternate payee shall commence on the earlier event:
(1) ceases employment in a covered position
and requests a refund of contributions;
(2) when the participating member begins
participation in the Deferred Retirement Option Plan (DROP); or,
(3) when the participating member retires.
In those instances where the alternate payee selects alternative
B. under Section III. (Duration of Payments to Alternate Payee) of the model
QDRO, the actuary will use the following guidelines in computing an equivalent
benefit to be paid for the alternate payee's lifetime:
1. The interest rate will be the valuation
rate.
2. The Mortality Table will
be the "50/50 Table".
3. The age
used in the computation shall be the attained age at the last birth date prior
to the effective date of the QDRO.
