1. (a)

   1. (1) The premium tax allocated to a location is to be used for the location’s local fire or police pension and relief fund and Arkansas Local Police and Fire Retirement System.
   2. (2) This division is defined in Arkansas Code § 24-10-409.

   3. (3) This calculation will be done as part of the allocation report defined in 24 CAR § 20-1203 and using the following considerations:

      1. (A) The number of participants used in making the calculation will be the number of participants on the December 31 preceding the year of the allocation;
      2. (B) The number of participants will include active members, retirees and beneficiaries, and members on the DROP for both local plan and system-only;
      3. (C) The number of participants will not include members of the system who are vested terminated participants;
      4. (D) A paid participant will count as five (5) volunteer participants for this division; and
      5. (E)

2. (i) The amount of the division will not be more than one hundred percent (100%) of the cost used in the allocation as defined in Arkansas Code § 24-11-214.

   1. (ii) For example, if a location is allocated with five thousand dollars ($5,000) and the division is two thousand dollars ($2,000) for the local plan and three thousand dollars ($3,000) for the system, but the cost for allocation purposes of the system is only two thousand three hundred dollars ($2,300), then the division is two thousand seven hundred dollars ($2,700) for the local plan and two thousand three hundred dollars ($2,300) for the system.
3. (b) The amount of the division for system locations and local fire and police plans administered by the system will be paid directly to the system.

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