§ 24-8-705 - Members electing coverage. - Arkansas Statutes

24-8-705. Members electing coverage.

(a) A member electing coverage under this subchapter shall be entitled to:

(1) A refund to the member for any credited service purchased under the Arkansas Judicial Retirement System together with six percent (6%) interest compounded annually from the date of payment;

(2) Restoration of service to another state-supported retirement system of any credited service that had been transferred to the Arkansas Judicial Retirement System upon refunding to that system any sums transferred by that system along with six percent (6%) interest compounded annually from the date of the transfer; or

(3) Substitute purchased service for actual service for which no member contribution was made, as provided under subsection (b) of this section.

(b) (1) A member or former member who elects coverage under this subchapter and who has accrued additional actual service prior to the date of transfer but after the date member contributions ceased shall pay to the Arkansas Judicial Retirement System on the effective date of transfer the contributions that would have been paid on the additional actual service at the rate of five percent (5%) of the pay received along with six percent (6%) interest computed annually from the date the contributions would have been paid to the effective date of transfer. However, in no instance, shall the member be required to pay contributions on active service that would exceed the amount required in 24-8-708.

(2) (A) If the member or former member has actual service for which no member contributions were made, then purchased service may be used to reduce the period of actual service for which payments are due under subdivision (b)(1) of this section. The purchased service may be subtracted from the period of actual service for which contributions were not made and the member or former member shall make payments only on the remaining period. However, purchased service shall not be substituted for contributions required for actual service occurring after the first twenty (20) years of actual service.

(B) Purchased service substituted for actual service under subsection (b) of this section shall be the most expensive service purchased by the member.

(C) If the member or former member has credited service remaining after making the substitution allowed under this subsection, the remaining credited service may be refunded under subdivision (a)(1) of this section or restored to another state system under subdivision (a)(2) of this section.

(D) Any purchased service substituted under subsection (b) of this section may not be used as credited service in another state-supported system.