1. (a) Monthly plan deposits to a plan participant’s T-DROP account shall stop if the plan participant:

   1. (1) Separates from service with a covered employer and is granted a monthly retirement benefit from either the Arkansas Teacher Retirement System or a reciprocal plan;
   2. (2) Reaches normal retirement age and retires without separating from covered employment;
   3. (3) Separates from covered employment and does not apply for retirement benefits; or
   4. (4) Dies.

2. (b)

   1. (1) If a plan participant separates from covered employment and does not apply for retirement benefits, monthly plan deposits into the plan participant’s T-DROP account shall be suspended beginning on the month in which the plan participant separates from covered employment.
   2. (2) The plan participant’s T-DROP account shall not be credited with a plan deposit for the duration of the plan participant’s separation from covered employment.
   3. (3) Monthly plan deposits into a plan participant’s T-DROP account shall resume if the plan participant returns to covered employment before the end of the plan period.

3. (c) If a plan participant applies for retirement, the retirement benefits shall be paid according to the plan participant’s T-DROP account balance:

   1. (1) At the time of the plan participant’s separation from covered employment; or
   2. (2) In the month before the effective date of the plan participant’s retirement benefits after the plan participant reaches the normal retirement age.

4. (d) A plan participant shall remain eligible for annual plan interest to be credited to his or her T-DROP account if the member:

   1. (1) Does not separate from covered employment; and
   2. (2) Remains on the covered employer’s payroll without earning sufficient service credit for monthly plan deposits.

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