1. (a) In lieu of terminating employment and voluntarily retiring:

   1. (1) An active member with at least thirty (30) years of service credit may elect to participate in T-DROP and continue to work for a covered employer; and
   2. (2) An active member with at least twenty-eight (28) years of service credit may elect to participate early in T-DROP and continue to work for a covered employer.
2. (b) The service credit of a plan participant shall be determined using the same rules that apply for determining the service credit of an active member.

3. (c) On-call availability shall not be used for:

   1. (1) T-DROP service credit requirements; or
   2. (2) Monthly plan deposits to a plan participant’s T-DROP account.
4. (d) An active member who elects to participate in T-DROP and continues his or her covered employment defers the receipt of retirement benefits.

5. (e)

   1. (1) Service credit in the Arkansas Teacher Retirement System, a reciprocal system, or a combination of service credit in the Arkansas Teacher Retirement System and the reciprocal system may be counted to meet the minimum service credit requirements for participation under T-DROP and the reciprocal system’s deferred retirement option plan if the reciprocal system offers members of the reciprocal system a deferred retirement option plan.
   2. (2) A retirement benefit payable by a reciprocal system shall be determined according to the law, rules, and regulations applicable to the reciprocal system.

   3. (3)

      1. (A) The final average salary of a plan participant with reciprocal service credit shall be the highest final average salary calculated by the Arkansas Teacher Retirement System or a reciprocal system in which the plan participant has at least two (2) years of service credit.
      2. (B) Each reciprocal system shall calculate final average salary in accordance with the law applicable to the reciprocal system.
      3. (C) A salary earned as a member of the Arkansas Judicial Retirement System or an alternate retirement plan shall not be used to calculate final average salary.

6. (f)

   1. (1) A reciprocal system shall credit a deferred retirement option plan account with plan deposits and plan interest according to the deferred retirement option program applicable
   2. (2) The Arkansas Teacher Retirement System shall not pay a monthly plan deposit into a plan participant’s T-DROP account for more than ten (10) consecutive years from the date on which the plan participant enters T-DROP.

Codification Notes: “T-DROP” means Teacher Deferred Retirement Option Plan.