(a) The Board of Trustees of the Arkansas Teacher Retirement System may waive or modify the impact of a rule, provision, or law applicable to the Arkansas Teacher Retirement System that does not violate a federal law or jeopardize the tax qualified status of the system in order to prevent a manifest injustice to:

1. (1) A member;
2. (2) A benefit participant;
3. (3) A covered employer; or
4. (4) The system.

(b)

1. (1) The process of declaring a manifest injustice is a rare and extraordinary remedy that shall not be used as a routine method of addressing:

   1. (A) Error;
   2. (B) Oversight; or
   3. (C) Simple mistake.

2. (2) As an extraordinary remedy, manifest injustice shall be cautiously and carefully used to:

   1. (A) Prevent unfairness;
   2. (B) Preserve the integrity of the system; and
   3. (C) Avoid or correct unduly harsh or unconscionable outcomes.

(c) In determining whether or not a manifest injustice exists, the system may consider:

1. (1) The degree of fault of the system, benefit participant, or employer;
2. (2) An ambiguity in the interpretation of the circumstances, rule, or law;
3. (3) The cost to the system of correcting the error that is far outweighed by the benefit afforded to the system, benefit participant, or employer;
4. (4) Whether or not an expedited decision is in the public interest;
5. (5) The fundamental fairness of a remedy in a particular situation; and
6. (6) Whether or not the status quo would result in an unconscionable outcome.

(d)

1. (1) The manifest injustice process shall not be used to address a change, omission, or error in the records of the system that may be corrected within the look-back period.
2. (2) The manifest injustice process may be used to correct a change, omission, or error in the records of the system discovered after the look-back period if the board determines that the time limitation imposed by the look-back period would cause a manifest injustice.