§ 24-5-101 - Definitions. - Arkansas Statutes

24-5-101. Definitions.

As used in this chapter, unless the context otherwise requires:

(1) "Accumulated contribution" means the sum of all amounts deducted from the salary or wages of a member, or paid by a member, and credited to his individual account, together with any interest the board may have authorized to be credited to the member's account;

(2) "Average compensation" means the average of the highest annual compensation paid a member during any period of thirty-six (36) consecutive months of creditable service with a "state employer", as the term "state employer" is defined in 24-2-401;

(3) "Board" means the Board of Trustees of the Arkansa State Highway Employees' Retirement System as created by this chapter;

(4) (A) "Creditable service" means the current service of the member plus the portion of prior service time for which contributions have been made or elected to be made by the member.

(B) Retirement benefits shall be computed upon the creditable service of the member.

(C) The board shall determine by appropriate rules and regulations how much service in any fiscal year is the equivalent of a year of creditable service;

(5) "Current service" means service as an employee of the Arkansas State Highway and Transportation Department after the date of establishment of the system and may include the period of time during which the employee's service may have been interrupted by service in the armed forces of the United States. The annual earnings for a military service period shall be computed in the manner set forth for prior service in subdivision (11) of this section;

(6) (A) "Employee" means any employee of the Arkansas State Highway and Transportation Department whose compensation is, or was, payable on an hourly, biweekly, monthly, annual, or other basis by the department, including any employee of the department whose salary is paid or reimbursed, in whole or in part, from federal or other funds.

(B) The term "employee" specifically shall not include persons who are employees of the Arkansas State Highway and Transportation Department on or after July 1, 1997, and who are eligible for benefits under, or who are earning a retirement benefit from, another state-supported retirement system;

(7) "Employer" means the Arkansas State Highway and Transportation Department;

(8) "Lump-sum service" means that, upon termination of employment with the Arkansas State Highway and Transportation Department for whatever reason, all lump-sum payments of leave, salary, or other compensation shall be earnings for retirement purposes. Both the time and amount paid shall be considered for purposes of computing average earnings and service in the Arkansas State Highway Employees' Retirement System, and both the member's and the employer's contribution rates shall apply to the lump-sum payments;

(9) "Member" means any person who has, by due process, had issued to him a certificate of membership in the Arkansas State Highway Employees' Retirement System;

(10) "Prior service" means all service as an employee of the Arkansas State Highway and Transportation Department prior to the date of establishment of the system;

(11) (A) "Prior service earnings" means the authenticated record filed with and approved by the board setting forth the salary received by the member for each fiscal year, or portion thereof, of his prior service as an employee, beginning with his last year of prior service and continuing in reverse chronological order.

(B) Prior service earnings records may include the period of time during which the employee's service may have been interrupted for service in the armed forces of the United States, in which case the annual earnings for the military service period of the member shall be computed upon the average of his last twelve (12) months' compensation from the Arkansas State Highway and Transportation Department prior to his entry into the armed forces and the first twelve (12) months' compensation after reemployment by the department;

(12) "Salary" or "compensation" means the total remuneration earned by an employee for services rendered during any consecutive twelve (12) months or fraction thereof; and

(13) "System" means the Arkansas State Highway Employees' Retirement System.