(a) An active member may purchase up to ten (10) years of federal retirement service that shall be credited if the:

1. (1) Federal retirement service being purchased is limited to service for which the federal retirement system could not pay a benefit to the member;
2. (2) Member applies for federal retirement service by submitting to the Arkansas Teacher Retirement System a completed application form approved by the Arkansas Teacher Retirement System;
3. (3) Member provides certification of his or her federal retirement service to the Arkansas Teacher Retirement System on a form approved by the Arkansas Teacher Retirement System;
4. (4) Member pays the Arkansas Teacher Retirement System, in full, the actuarial equivalent of benefits for each year of service credit being purchased; and
5. (5) Member has established at least five (5) years of actual service, excluding federal retirement service.

(b)

1. (1) A member shall complete at least one hundred sixty (160) working days before the member may establish one (1) year of federal retirement service credit.
2. (2) One (1) month of federal service shall be considered twenty (20) days of service.

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

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

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

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