(a) Unless otherwise provided by the Office of Personnel Management’s Policy No. 65, effective July 1, 2009, a retiree who terminates employment under Arkansas Code § 24-7-502 or reaches the normal retirement age may:

1. (1) Accept employment with a covered employer; and
2. (2) Continue to receive a monthly retirement annuity without a limitation of his or her retirement annuity.

(b)

1. (1) Both a retiree who returns to service with a covered employer and the covered employer who employs the retiree shall report the retiree’s employment to the Arkansas Teacher Retirement System using forms and reports required by the system.

2. (2) A retiree who receives monthly retirement benefits and is employed by a covered employer shall not:

   1. (A) Pay member contributions;
   2. (B) Be responsible for employer contributions; or
   3. (C) Accrue additional service credit.
3. (3) A covered employer that employs a retiree shall pay employer contributions on the salary paid to the retiree in an amount equal to the employer contribution rate applicable to an active member.