(a)

1. (1) The Arkansas Teacher Retirement System Benefit Restoration Plan and Trust is and shall remain unfunded and the rights, if any, of any person to any benefits under the plan are limited to those specified in the plan.
2. (2) The plan constitutes a mere unsecured promise by the employers to make benefit payments in the future.

(b)

1. (1) The Executive Director of the Arkansas Teacher Retirement System, using authority delegated by the Board of Trustees of the Arkansas Teacher Retirement System, shall determine the amount necessary to pay the benefit restoration under the plan for each plan year.
2. (2) The Arkansas Teacher Retirement System shall provide an estimate of the benefit restoration on or before March 1 of each year, provided, however, in 2013, the plan administrator will provide an estimate of the benefit restoration within ten (10) days of the effective date of this subpart.

(c)

1. (1) The required contribution will be the aggregate of the benefit restorations payable to all participants for the plan year and an amount determined by the executive director, through delegation, to be a necessary and reasonable expense of administering the plan.

2. (2)

   1. (A) The employers will contribute the amount determined to be necessary to pay the benefit restoration of the participants and administrative expenses of the plan, and these payments will be made before the employers’ deposits are credited to the retirement fund.
   2. (B) The employers’ required contribution will be due at the same time as contributions to the retirement fund.
   3. (C) Under no circumstances will the employers’ contributions to fund the benefit restorations be credited to the retirement fund.

3. (3)

   1. (A) Any contributions not used to pay the benefit restoration for a current plan year, together with any income accruing to the trust fund, shall be used to pay the administrative expenses of the plan for the plan year.
   2. (B) Any contributions not used to pay the benefit restoration for the current plan year that remain after paying administrative expenses of the plan for the plan year will be used to fund administrative expenses or benefits of participants in future plan years.

(d)

1. (1) The system shall account separately for the amounts the executive director, using the authority delegated by the board, determines to be necessary to provide the benefit restoration under the plan for each participant.
2. (2) However, the separate accounting will not be deemed to set aside these amounts for the benefit of a participant.

(f)

1. (1) The consultants, independent auditors, attorneys, and actuaries performing services for the system may also perform services for this plan.
2. (2) However, any fees attributable to services performed with respect to this plan will be payable solely from the trust fund.