(b)

1. (1) A partial service year shall be excluded from the calculation of a member’s final average salary unless the:

   1. (A) Partial service year is higher than a full service year; or
   2. (B) Member has less than the required number of years to calculate a final average salary.
2. (2) Anti-spiking calculations shall not be applied to a partial service year or a fiscal year immediately following a partial service year.

(c)

1. (1) The Board of Trustees of the Arkansas Teacher Retirement System shall set annually the applicable number of years to be used in computing final average salary for retirement benefits at not less three (3) years and not more than five (5) years.
2. (2) Unless otherwise provided by law, rules, or policies applicable to the Arkansas Teacher Retirement System, effective July 1, 2018, the Arkansas Teacher Retirement System shall calculate a member’s final average salary using the five (5) years in which the member received the highest salary from a covered employer.

(d)

1. (1) If a member has less than the minimum number of years of credited service that would be used to calculate a final average salary, the member’s final average salary shall be the total salary paid to the member for his or her years of credited service divided by the member’s total credited years of service.
2. (2) If a member does not have full service years for the total years of service used in the calculation of final average salary, the board may establish by rule a fair base salary for a member’s final average salary for purposes of comparing the member’s highest salary years.

(e)

1. (1) For an active member who has three (3) or more full service years as of July 1, 2018, the Arkansas Teacher Retirement System shall:

   1. (A) Treat the active member as if he or she was retiring or entering the Teacher Deferred Retirement Option Plan as of June 30, 2018; and
   2. (B) Determine the benchmark final average salary using the highest salary from the member’s three (3) full service years through fiscal year 2018.
2. (2) A final average salary calculation using three (3) full service years shall be the benchmark comparison for a five-year final average salary calculation to which the active member may be entitled.
3. (3) The Arkansas Teacher Retirement System shall calculate the active member’s final average salary using the five (5) years in which the active member received the highest salary from a covered employer if at the time of the active member’s retirement using a five-year calculation of the final average salary is higher than using a three-year calculation.
4. (4) The Arkansas Teacher Retirement System shall not use a benchmark final average salary for an inactive member unless the inactive member provides the Arkansas Teacher Retirement System with appropriate documentation showing that the inactive member was active in a reciprocal system or alternate retirement plan during the 2018 fiscal year.