1. (a) In accordance with Arkansas Code § 24-4-101(17), the Board of Trustees of the Arkansas Public Employees’ Retirement System has final power to determine who is eligible for participation in the Arkansas Public Employees’ Retirement System.

2. (b) Accordingly, all persons appearing on any covered employer’s payroll (regular, temporary, or extra help) shall become members of the system as a condition of employment except as follows:

   1. (1) Persons employed for a period of less than ninety (90) consecutive calendar days shall be excluded from membership;

   2. (2)

      1. (A) Persons who are employed for a period of more than ninety (90) consecutive calendar days, but who do not qualify as full-time employees, shall be excluded from membership.
      2. (B) A person shall be considered a full-time employee if the person works at least eighty (80) hours per month during a period of ninety (90) consecutive calendar days.
      3. (C)

3. (i) The eighty-hour requirement shall not apply to school division employees.

   1. (ii) A school division employee shall be considered qualified if that person works at least one-half (1/2) of the time required by a full-time person employed in the position during a period of ninety (90) consecutive calendar days; and

   2. (3)

      1. (A) Persons whose rate of pay does not constitute employment that is substantially gainful shall be excluded from membership.
      2. (B) For purposes of this section, rate of pay is equal to monthly earnings reported to the system divided by the hours worked during the report month.
      3. (C) A rate of pay of less than the federal minimum wage for the year in question shall not be considered substantially gainful.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "303 – 1965 (7) – Requirement for Membership in System (as amended May 2001)"