1. (a)

   1. (1) The rate of interest that is to be credited to the DROP account is to be certified by the actuary for the Arkansas Fire and Police Pension Review Board.
   2. (2) The board will communicate the necessary information from the annual financial reports that are submitted to it to the actuary for the board.
   3. (3) The actuary will annually issue a list of local plans which have elected participation in the DROP and the certified interest rate for the DROP.

2. (b)

   1. (1) The interest rate credited after the first five (5) years of DROP, when a participant has elected to defer receipt of the DROP account, and for continued employment after DROP, has a minimum rate of zero percent (0%).
   2. (2) Therefore, there will be two (2) interest rates communicated each year.

3. (c)

   1. (1) The first rate will be for the first five (5) years of DROP participation.

   2. (2) The second rate will be for:

      1. (A) DROP participation after five (5) years;
      2. (B) Deferred receipt of the DROP account; and
      3. (C) Continued employment after DROP.

Codification Notes: “DROP” means deferred retirement option plan.