1. (a)

   1. (1) During participation in T-DROP, the Arkansas Teacher Retirement System shall credit a plan participant’s T-DROP account with plan deposits and plan interest.
   2. (2) A plan participant’s T-DROP plan deposit may be reduced as provided by the law and rules applicable to the system.

   3. (3)

      1. (A) The system shall provide each plan participant with an annual statement of the plan participant’s T-DROP account.
      2. (B) The statement of plan deposits and plan interest shall not be final until the annual accounting has been reconciled for part-time plan participants.

2. (b) A plan participant’s plan deposit shall be determined as follows:

   1. (1) If a plan participant has at least thirty (30) years of credited service in the system, including combined service with a reciprocal system, the plan deposit shall be the plan participant's T-DROP benefit, as calculated at the plan participant’s entry into T-DROP, reduced by one percent (1%) for each year of credited service, including fractions of a year; or

   2. (2) If a plan participant enters T-DROP early, the plan participant’s plan deposit shall be the plan participant’s T-DROP benefit, as calculated at the plan participant’s entry into T-DROP, reduced by:

      1. (A) One percent (1%) for each year of credited service, including fractions of a year; and
      2. (B) At least an additional one-half percent (0.5%), but no more than one percent (1%), of the initially reduced plan deposit, for each month of credited service under thirty (30) years.

3. (c)

   1. (1) A plan participant’s T-DROP account shall be credited with twelve (12) monthly plan deposits per fiscal year if the:

      1. (A) Plan participant earns at least one hundred sixty (160) days of service credit in a fiscal year and does not terminate employment, retire, or die during the fiscal year; or
      2. (B) Plan participant’s covered employer does not terminate the employer-employee relationship.

   2. (2)

      1. (A) If a plan participant earns less than one hundred sixty (160) days of service credit in a fiscal year, the plan deposit shall be made in accordance with the part-time employment schedule as follows:

4. (i) If a plan participant earns at least fifteen (15) days of service credit in the first or fourth quarter of the fiscal year, the plan participant’s T-DROP account shall be credited with three (3) monthly plan deposits for the quarter;

   1. (ii) If a plan participant earns less than fifteen (15) days of service credit in the first or fourth quarter of the fiscal year, the plan participant’s T-DROP shall not be credited with a plan deposit for the three (3) months of that quarter;

      1. (iii) If a plan participant earns at least twenty-five (25) days of service credit in the second or third quarter of the fiscal year, the plan participant’s T-DROP account shall be credited with three (3) monthly plan deposits for the quarter; and

         1. (iv) If a plan participant earns less than twenty-five (25) days of service credit in the second or third quarter of the fiscal year, the plan participant’s T-DROP shall not be credited with a plan deposit for the three (3) months of that quarter.

      2. (B) If plan participant is required to work at least fifteen (15) days in a quarter in order for the plan participant to receive all three (3) monthly deposits and the plan participant does not complete the quarter due to the termination of the employee-employer relationship, the plan deposit shall be as follows:

         1. (i) The plan participant shall receive one (1) monthly deposit if the plan participant works:
5. (a) (a) At least one (1) day and terminates employment in the first month of the uncompleted quarter; or

6. (b) (b) Between one (1) and five (5) days and terminates employment in any of the three (3) months of the uncompleted quarter;

   1. (ii) The plan participant shall receive two (2) monthly deposits if the plan participant works:
7. (a) (a) At least six (6) days and terminates employment in the second month of the uncompleted quarter; or

8. (b) (b) Between six (6) and ten (10) days and terminates employment in the second or third month of the uncompleted quarter; and

   1. (iii) The plan participant shall receive three (3) monthly deposits if the plan participant works at least eleven (11) days and terminates employment in the third month of the uncompleted quarter.

      1. (C) If a plan participant is required to work at least twenty-five (25) days in a quarter in order for the plan participant to receive all three (3) monthly deposits and the plan participant does not complete the quarter due to the termination of the employee-employer relationship, the plan deposit shall be as follows:

         1. (i) The plan participant shall receive one (1) monthly deposit if he or she works:
9. (a) (a) At least one (1) day and terminates employment in the first month of the uncompleted quarter; or

10. (b) (b) Between one (1) and eight (8) days and terminates employment in any of the three (3) months of the uncompleted quarter;

    1. (ii) The plan participant shall receive two (2) monthly deposits if the plan participant works:
11. (a) (a) At least nine (9) days and terminates employment in the second month of the uncompleted quarter; or

12. (b) (b) Between nine (9) and sixteen (16) days and terminates employment in the second or third month of the uncompleted quarter; and

    1. (iii) The plan participant shall receive three (3) monthly deposits if the plan participant works at least seventeen (17) days and terminates employment in the third month of the uncompleted quarter.

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