STATE POLICE RETIREMENT SYSTEM BOARD RULES
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 6 - May 1978 - PUBLIC SAFETY All commissioned personnel are public safety as referenced in Act 793 of 1973.
RULE 7 - August 1986, Amended - August 2005 - INVESTMENT POLICY (Repealed by Act 1242 of 2009)RULE 8 - June 1988 - RETIREMENT DATE The date of retirement shall be considered the last date of employment.
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 12 - May 1996 - EARNINGS LIMITAION FOR NON-CONTRIBUTORY DISABILITY RETI REES (Repealed August 2, 2000)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 accountc. 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.075.00.19 Ark. Code R. 006
Adopted by Arkansas Register Volume XLIII Number 06, Effective 12/2/2019