Effective July 1, 1997, if a public school district privatizes any of its services, a person who is or was employed by the public school district in one (1) or more of the privatized services and who is or has been a member of the Arkansas Teacher Retirement System may elect to remain a member of the system if the:

1. (1) Board of Trustees of the Arkansas Teacher Retirement System determines that the participation of employees hired by the private provider will not:

   1. (A) Impair the system's legal status, including:

      1. (i) The system's tax-qualified and governmental plan status under the Internal Revenue Code, 26 U.S.C. § 1 et seq.; and
      2. (ii) The system's governmental plan status under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.;
   2. (B) Subject the system to additional federal requirements; or
   3. (C) Have a substantial adverse impact on the system's actuarial soundness; and

2. (2) Private provider assumes responsibility for:

   1. (A) Required employer contributions; and
   2. (B) Fees for obtaining Internal Revenue Service rulings or Employee Retirement Income Security Act of 1974 opinions.