2010 Arkansas Code
Title 24 - Retirement And Pensions
Chapter 11 - Local Police And Fire Pension And Relief Funds
Subchapter 4 - Police Pension and Relief Funds -- Cities of the First Class
§ 24-11-418 - Credited service -- Purchase for military service by past or present members generally.

24-11-418. Credited service -- Purchase for military service by past or present members generally.

(a) A person who is or was a member of the policemen's pension and relief fund as established by this subchapter and who was not receiving benefits under the system on June 17, 1981, may purchase credited service in the system for a period not to exceed two (2) years for service rendered by the member while on active duty in the armed forces of the United States before the member's employment covered by the policemen's pension and relief fund as established by this subchapter, but only if:

(1) The person received an honorable discharge from the armed forces; and

(2) The person does one (1) of the following:

(A) If he or she has participated in the policemen's pension and relief fund for at least eighteen (18) years, he or she contributes to the member's deposit account a sum of money equal to the amount of the combined employee and employer contribution made by or on behalf of the member to the system based upon the contributions for the last month of the employee's eighteenth year of service, multiplied by the number of months of military service the member is eligible for and desires to purchase under this section with interest thereon at the rate of six percent (6%) per annum from the date of eligibility to purchase the service to the date of purchase; or

(B) If he or she has participated in the policemen's pension and relief fund for at least twenty (20) years, he or she contributes to the member's deposit account a sum of money equal to the amount of the combined employee and employer contribution made by or on behalf of the member to the system based upon contributions at the time he or she first became a member of the retirement system, multiplied by the number of months of military service the member is eligible for and desires to purchase under this section with interest thereon at the rate of six percent (6%) per annum from the date of eligibility to purchase the service to the date of purchase.

(b) A member who purchases credited service in the system as authorized in this section shall not be entitled to receive retirement benefits under the system until the date on which he or she has twenty (20) years of actual service under the system or would have had twenty (20) years of actual service under the system if the member had continued his or her employment.

(c) When a member purchases credited service as authorized in this section and terminates employment before his or her twentieth anniversary as a member of the system, that portion of the insurance premium tax returned to the employing city for credit to policemen's pension funds that was previously credited to the policemen's pension and relief fund for the position held by the member shall continue to be credited to that fund until the date on which the member would have been a member of the system for twenty (20) years had he or she continued employment.