As permitted by Internal Revenue Service regulations issued October 19, 1995, Arkansas Public Employees’ Retirement System will accept eligible rollover distributions from tax-qualified retirement plans under the following conditions:

1. (1) The proceeds from the rollover distribution must be used to:

   1. (A) Purchase eligible service credit in the system; or
   2. (B) Repay a refund and thereby reestablish forfeited service;
2. (2) If the former plan is a defined contribution plan, that plan must permit such rollover; and

3. (3)

   1. (A) The exact source of all funds involved in the rollover must be identified by the former plan.
   2. (B) That is, after tax employee contributions, pretaxed contributions, and source (employee or employer), or earnings on contributions.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "407 – 1996 (2) – Direct Transfer of Eligible Rollover Distributions"