(a) The Executive Director of the Arkansas Teacher Retirement System is authorized and directed to:

1. (1) Operate the Arkansas Teacher Retirement System in accordance with the requirements of the Internal Revenue Code of 1986, 26 U.S.C. § 1 et seq., and applicable United States Treasury regulations as may be necessary for the system to maintain its status and continue being operated as a qualified trust under 26 U.S.C. § 401(a); and
2. (2) Interpret Arkansas Code § 24-7-101 et seq., and the policies and rules of the system in a manner that is consistent with the requirements of the Internal Revenue Code of 1986 and applicable United States Treasury regulations as may be necessary for the system to maintain its status and continue being operated as a qualified trust under 26 U.S.C. § 401(a).

(b)

1. (1) The policies and rules promulgated by the Board of Trustees of the Arkansas Teacher Retirement System shall be consistent with the requirements of the Internal Revenue Code of 1986 and applicable United States Treasury regulations.
2. (2) Any policy or rule found to be in conflict with an applicable provision of the Internal Revenue Code of 1986 is void.
3. (3) In accordance with Arkansas Code § 24-7-305, the board by resolution may modify or eliminate a rule of the system if a requirement under the Internal Revenue Code of 1986 becomes unnecessary, immaterial, or obsolete to the maintenance of the system’s status as a qualified trust.