As used in this subpart:

1. (1) "Actual service” means service rendered in a position covered by the Arkansas Teacher Retirement System, not including:

   1. (A) Purchased service credit;
   2. (B) Free service credit; or
   3. (C) Reciprocal service;
2. (2) “Credited service” means service that is credited as service by the Arkansas Teacher Retirement System;
3. (3) “Covered employer”, as it relates to outsourcing, means a public school, public educational agency, or other eligible employer participating in the Arkansas Teacher Retirement System, but does not include a nonmandatory employer or a PSHE employer as defined in Arkansas Code § 24-7-1602 or a covered employer that reports through the Arkansas Administrative Statewide Information System;

4. (4) “Embedded employee” means a person who:

   1. (A) Provides an outsourced service on the premises of a covered employer;
   2. (B) Is employed and paid by an outsource contractor; and

   3. (C) Is not employed by:

      1. (i) A covered employer listed under Arkansas Code § 24-7-202; or
      2. (ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing;
5. (5) "Full service year" means employment with a covered employer for one hundred sixty (160) days or more in a fiscal year;
6. (6) “Participating employer” means a covered employer that outsources and opts for the embedded employees of all of the covered employer’s outsource contractors to become members of the Arkansas Teacher Retirement System;
7. (7) “Service” means employment rendered as an employee;

8. (8) “Specialized support position” means a position that:

   1. (A) Requires less than eight (8) working hours per day, including without limitation the positions of:

      1. (i) Bus driver;
      2. (ii) Custodial worker; and
      3. (iii) Cafeteria worker; and
   2. (B) A covered employer certifies as a specialized support position to the Arkansas Teacher Retirement System;
9. (9) “Surcharge employer” means a covered employer that outsources and pays a surcharge to the Arkansas Teacher Retirement System; and

10. (10) “Youth participant” means a person:

    1. (A) Who is:

       1. (i) Enrolled in a secondary public school as a student; and
       2. (ii) Employed through his or her participation in a summer work program for a period between the first day of June and the last day of August; and
    2. (B) Whose compensation is disbursed by a covered employer as part of an agreement between the covered employer and an administrator of the summer work program that designates the covered employer as a pass-through fiscal agent.

Codification Notes: “PSHE” means postsecondary or higher education.