(a) Beginning January 1, 2003, a member may purchase up to ten (10) years of domestic federal service that shall be credited if:

1. (1) The member:

   1. (A) Has contributions left on deposit with another system and the domestic federal service credit being purchased is limited to service for which another system similar in purpose to the Arkansas Teacher Retirement System, except for Social Security, could not pay a benefit;
   2. (B) Pays the Arkansas Teacher Retirement System, in full, the actuarial equivalent of benefits for each year of domestic federal service credit being purchased; and
   3. (C) Has established at least five (5) years of actual service, excluding federal domestic service; and
2. (2) All other requirements set by rules adopted by the Board of Trustees of the Arkansas Teacher Retirement System are met.

(b) A member may purchase a fraction of a year of domestic federal service that shall be credited if the:

1. (1) Member has at least one-fourth (1/4) of a year of domestic federal service in a fiscal year; and
2. (2) Fraction of a year of domestic federal service can be credited in accordance with Arkansas Code § 24-7-601.

(c) At the member’s request, a member’s payment for domestic federal service credit shall be refunded by the Arkansas Teacher Retirement System if the:

1. (1) Member ceased to be an active member before the domestic federal service credit is established as credited service in the Arkansas Teacher Retirement System; or
2. (2) Domestic federal service credit is not otherwise used to establish the member’s eligibility for retirement under the Arkansas Teacher Retirement System.