(b)

1. (1) The retirement benefits payable to a retiree shall be the total number of contributory years of credited service, multiplied by a factor that is not less than one and seventy-five hundredths percent (1.75%) and not more than two and fifteen hundredths percent (2.15%) of the final average salary as set by the Board of Trustees of the Arkansas Teacher Retirement System, plus the total number of noncontributory years of credited service multiplied by a factor that is not less than five-tenths percent (0.5%) and not more than one and thirty-nine hundredths percent (1.39%) of the final average salary, as set by the board.
2. (2) The board shall modify the standard multipliers for credited service of ten (10) years as necessary to maintain actuarial soundness.

(c)

1. (1) The board by resolution may reverse a compound cost of living adjustment as needed to maintain the actuarial soundness of the Arkansas Teacher Retirement System.
2. (2) A reversal may be phased in as the board determines appropriate.

(d)

1. (1) If a covered employer reports additional salary for a member and the additional salary does not cause the member’s annual benefit to increase or decrease by more than the de minimis amount, then the member’s contributions on the additional salary shall be transferred from the member’s deposit account to the employer accumulation account without making any change to the member’s annual benefit.
2. (2) If the additional salary does increase or decrease the member’s annual benefit by more than the de minimis amount, then the member’s annual benefit shall be recalculated.