(b)

1. (1) The system shall return overpayments of employee contributions and employer contributions resulting from erroneous contribution submissions or incorrect reporting of Salary Option 2 member salaries (first seven thousand eight hundred dollars ($7,800)) to the appropriate covered employer.

2. (2)

   1. (A) The system shall send written notification to a member or covered employer, as appropriate, of a contribution overpayment that is less than the de minimis amount that may be refunded.
   2. (B) The de minimis amount shall:

(i) Be periodically set by the Board of Trustees of the Arkansas Teacher Retirement System; and

1. (ii) Remain the same amount until adjusted by the board.

   1. (C)

      1. (i) A contribution overpayment that is less than the de minimis amount shall not be refunded to the covered employer unless the covered employer submits a written request for a refund to the system within fourteen (14) days of receiving the written notice of the contribution overpayment from the system.
      2. (ii) If a covered employer does not submit a written request for a refund within fourteen (14) days of receiving the written notice of the contribution overpayment from the system, the amount of the contribution overpayment shall be forfeited to the trust assets of the system.

   2. (D)

      1. (i) A contribution overpayment that is less than the de minimis amount shall not be refunded to the member unless the member submits a written request for a refund to the system within fourteen (14) days of receiving the written notice of the contribution overpayment from the system.
      2. (ii) If the member does not submit a written request for a refund within fourteen (14) days of receiving the written notice of the contribution overpayment from the system, the amount of the contribution overpayment shall be forfeited to the trust assets of the system.

2. (3) The total amount of contributions reported by the covered employer shall be credited to contributions.

   1. (c)
3. (1) For refunded contributions, the rate of regular interest compounded annually after the first year of contributions shall be credited as follows:

   Service	Regular Interest Rate
   Before July 1, 1984	3%
   For July 1, 1984 through June 30, 2009	6%
   For July 1, 2010, through June 30, 2011	2%
   For July 1, 2012, through June 30, 2017	1%
   For July 1, 2017 and after	0.08%

4. (2) Payable regular interest shall be computed:

   1. (A) On each member’s individual account on June 30; and
   2. (B) By multiplying the balance in the member’s individual account as of July 1, including contributions and regular interest credit from previous years, plus one-half (1/2) of the contributions for the year ending June 30 by the annual applicable regular interest percentage rate.

5. (3) The board, by resolution, may change the regular interest rate on refunded contributions for subsequent years by stating:

   1. (A) The new regular interest rate;
   2. (B) The date that the new regular interest rate is effective; and
   3. (C) Any other features necessary for implementing the regular interest rate.
6. (4) Regular interest shall not be paid on contributions made in the year in which a refund of contributions is paid to a member.
7. (5) The system shall issue a refund for a member’s contributions that are closed on the system’s books after receiving the member’s properly completed refund application.
8. (6) If a second refund payment is required to complete the refund of contributions, the second payment shall be made when all quarters of service the member works are closed on the system’s books.
9. (7) A rollover payment shall be made in one (1) payment when all quarters of service the member works are closed on the system’s books.

10. (8) A refund is effective on the date on which the system first issues a payment of the refund.

    1. (d) The system shall not collect a contribution underpayment of less than the de minimis amount from a covered employer.