(b)

1. (1) A member is considered active if the member is using earned:

   1. (A) Sick leave;
   2. (B) Family Medical Leave Act leave;
   3. (C) Annual leave; and
   4. (D) Catastrophic leave.

2. (2) Workers’ compensation, which may or may not include the use of leave granted by an employer, shall not:

   1. (A) Be considered leave by which a member is considered active; and
   2. (B) Extend the date of active membership.

(c)

1. (1) A member shall not receive disability retirement benefit payments if the member indirectly performs work for a covered employer as described in Arkansas Code § 24-7-502.

2. (2) If a member is approved for disability retirement and continues to work either directly or indirectly for a covered employer, the member shall:

   1. (A) Terminate direct or indirect employment with the covered employer by the proposed disability effective retirement date; or
   2. (B) If the member is finalizing work for the covered employer, terminate employment no later than two (2) full calendar months after the medical committee’s final decision.

3. (3) If the member does not terminate employment in accordance with system rules and Arkansas Code § 24-7-502:

   1. (A) The member’s disability retirement application shall be considered rescinded; and
   2. (B) The member may reapply for disability retirement if eligible.

(d)

1. (1) A retiree under the age of sixty (60) may be employed by a covered employer and also receive disability retirement benefit payments if the retiree performs less than eighty (80) days of actual service during a fiscal year.

2. (2)

   1. (A) After receiving approval for disability retirement under the system, a retiree may choose to return to covered employment and relinquish his or her disability retirement.
   2. (B) If a retiree chooses to return to covered employment, the member shall:

(i) Not receive disability retirement benefit payments;

1. (ii) Be considered an active member; and

   1. (iii) Comply with Arkansas Code § 24-7-738 (Acts 2017, No. 549).

2. (3) A retiree shall become an active member and his or her disability retirement shall be immediately terminated if:

   1. (A) The retiree notifies the system in writing of his or her intent to perform more than eighty (80) days of actual service during a fiscal year; or
   2. (B) The system receives written notification of the retiree’s intent to perform more than eighty (80) days of actual service during a fiscal year through a termination and status sheet, membership data form, or any other reasonably reliable documentation.