(a)

1. (1) A member shall only earn service credit for actual, on-site work performed for a covered employer for the period specified in a contract buyout, settlement, or court-ordered payment unless the member purchases service or salary that would have been received by the member if the member had been successful in his or her legal claim.

2. (2)

   1. (A) If a member is on call with a covered employer and not subject to either a contract buyout, settlement, or court-ordered payment, the salary paid to the member as a regular employee shall be credited to the member.
   2. (B) On-call credit shall not be added to a member’s salary with another covered employer.

(c) The Arkansas Teacher Retirement System shall not adjust a member’s service history until the:

1. (1) Member or the member’s covered employer provides a copy of the settlement, a file-marked court order, or a certified copy of the contract buyout to the system; and

2. (2)

   1. (A) Actuarial cost to purchase the service has been paid in full to the system.
   2. (B) A member shall purchase service or salary at the actuarial cost for service and salary that the member would have earned if the member had not been terminated.

(d)

1. (1) Service credit purchased under a settlement agreement or court order shall offset service credit that is earned through covered employment with another covered employer during the same period of time covered by the service credit purchased under the settlement agreement or court order.
2. (2) Service credit purchased under a settlement agreement or court order shall not be applied in a manner that allows a member to earn more than one (1) year of service credit in a fiscal year.

(e)

1. (1) The system shall credit a member with additional salary credit purchased through a settlement agreement or court order only if the:

   1. (A) Additional salary being purchased is being paid to the member in order to resolve a claim of wrongful termination or employment discrimination that culminated in a settlement agreement or court order; and
   2. (B) Additional salary is salary that the member would have been paid but for the employment discrimination.
2. (2) Only qualifying additional salary credit purchased through a contract buyout may be used in the final average salary calculation.