Arkansas Administrative Code
Agency 088 - Arkansas Teacher Retirement System
Division 01 - Legal Department
Rule 088.01.23-016 - Rule 16 Cash and Savings Help (CASH) Program
Universal Citation: AR Admin Rules 088.01.23-016
Current through Register Vol. 49, No. 9, September, 2024
§ 16-101. Definitions.
As used in this rule:
(1) "CASH Program" has the same meaning as
"buyout plan" as defined in Arkansas Code §
24-7-505; and
(2) "CASH Program payment" means the one-time
lump-sum cash payment made to a member who elects to participate in the CASH
Program.
§16-102. CASH Program.
(a) The Board of
the Arkansas Teacher Retirement System by resolution shall establish and
approve the category of members who are eligible to participate in the CASH
Program, the CASH Program offering period, and the formula to be used during a
CASH Program offering period.
(b)
(1) In accordance with Arkansas Code §
24-7-505, this rule, and
applicable resolutions of the board, the Arkansas Teacher Retirement System
shall determine if a member is qualified to receive a CASH Program
payment.
(2) Only qualifying
members may receive a CASH Program payment.
(3) Any erroneous delivery of a CASH Program
election form by the system to a member shall not establish the member's right
to a CASH Program payment.
§ 16-103. CASH Program payment.
(a) The tender of a CASH
Program payment by the Arkansas Teacher Retirement System to a member who
elects to participate in the CASH Program shall:
(1) Cancel the member's membership in the
system;
(2) Extinguish any credited
service the member has accumulated in the system; and
(3) Extinguish the member's right to any
future retirement benefit that the member would have received from the system
based on the member's service.
(b)
(1) The
opportunity for a CASH Program payment shall be available in accordance with
the provisions of Arkansas Code §
24-7-505 and this rule and only
for a specific and temporary period of time to a specific category of
members.
(2) The Board of the
Arkansas Teacher Retirement System may determine the category of members of the
system to whom a CASH Program payment may be offered.
(c)
(1) The
CASH Program payment shall be calculated under a formula that is:
(A) Unique to the category of members to whom
the CASH Program payment is available; and
(B) Applicable for the offering period
exclusively.
(2)
(A) Th system shall not be obligated to
extend a CASH Program payment offer or to make a future or similar CASH Program
payment offer.
(B) The terms,
rules, and rights for any CASH Program payment offer under a specific offering
period shall not apply to a subsequent CASH Program payment offering.
(d) A CASH Program
payment shall be tendered only for actual service credit that a member has in
the system and shall not be tendered for reciprocal service credit that a
member has in the system.
(e)
(1) A CASH Program payment may be:
(A) Made by check and may be mailed to a
member's address; or
(B)
(i) At the member's direction, directly
rolled over into a qualifying retirement plan under Arkansas Code §
24-7-719.
(ii) The system shall roll over a CASH
Program payment into only one (1) qualifying retirement plan.
(2)
(A) The system shall make reasonable efforts
to contact all members who are eligible to participate in the CASH
Program.
(B) However, the system
shall not be obligated to:
(i) Contact a
member to verify the accuracy of the member's last address of record on file
with the system;
(ii) Confirm a
member's receipt of a CASH Program offer;
(iii) Confirm a member's receipt of a CASH
Program election form; or
(iv)
Confirm that the system has received a CASH Program election form submitted by
a member.
§ 16-104. CASH Program - Offering period.
(a) The Board of the Arkansas
Trustee Retirement System shall set the dates for any CASH Program offering
period.
(b)
(1) After the board sets a specific CASH
Program offering period, only members who submit an election to participate in
the CASH Program to the Arkansas Teacher Retirement System shall qualify to
receive a CASH Program payment that is available during the CASH Program
offering period set by the board.
(2) However, a member shall not qualify to
receive a CASH Program payment that is available during a CASH Program offering
period set by the board if the member submits his or her election to
participate in the CASH Program after the CASH Program offering period
deadline.
(c) The board
by resolution may re-offer a previously expired CASH Program or may extend the
duration of a current CASH Program offering period.
§ 16-105. CASH Program - Election form.
(a)
(1) The CASH Program election form shall be
made available to members using the Arkansas Teacher Retirement System's
standard procedures.
(2) The system
shall not be responsible for confirming the member's receipt of a CASH Program
election form, regardless of the manner in which the member requested to be
provided with the CASH Program election form.
(3) The member shall be solely responsible
for obtaining and submitting to the system a CASH Program election from as
required under this rule.
(b)
(1) A
member's election to participate in the CASH Program shall be submitted to the
Arkansas Teacher Retirement System on a form approved by the system before the
applicable CASH Program offering period deadline.
(2) A CASH Program election form is invalid
and shall not be accepted by the system if it:
(A) Has not been completed in its entirety by
the member or as required by this rule;
(B) Is postmarked after the CASH Program
offering period deadline;
(C) Is
submitted by facsimile and has a date-stamp that is after the CASH Program
offering period deadline; or
(D) Is
sent as an attachment to an e-mail and the e-mail is sent after the CASH
Program offering deadline.
(c) A CASH Program election form shall
include the following:
(1) The member's
signature and the date on which the member signed the election form;
and
(2) The member's signed
statement that he or she understands that:
(A)
The purpose and scope of the CASH Program and that the CASH Program election
form cannot be withdrawn by the member after the Arkansas Teacher Retirement
System tenders the CASH Program payment to the member; and
(B) A member who participates in the CASH
Program plan shall receive a one-time lump-sum payment from the system that,
upon the system's tender of payment, cancels the member's interest in any
retirement benefit and all future rights in the system.
Authority: Arkansas Code §§ 24-7-505 and 24-7-707
Resolutions
|
2017-18 |
May 10, 2017 |
Expand to include contributory service. |
|
2018-35 |
October 1,2018 |
Create offer period for FY2019 |
|
2019-30 |
June 3, 2019 |
Create offer period for FY 2020 |
History
|
Approved by Board: |
July 26, 2013 |
|
|
Adopted: |
October 9, 2013 |
|
|
Effective: |
November 8, 2013 |
|
|
Effective: |
August 5, 2019 |
|
|
Effective: |
TDB |
Rule 16 |
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
