24 CAR § 10-515. Purchase accounts

(a) Purchase account payments shall be applied to the member’s account on the date the payment is received by the Arkansas Teacher Retirement System. (b)(1) The system shall accept participant rollover contributions and direct rollovers for the purchase of service credit from a qualified retirement plan. (2) A depository trustee from a qualified retirement plan shall certify to the system that the rollover deposit account is qualified and eligible to receive rollover distributions before a distribution of a member’s account monies. (3)(A) If the depository trustee is unable to certify the rollover deposit account as qualified and eligible to receive rollover distributions, the system shall accept a certification from a public accountant who has an active certified public accountant’s license. (B) The system shall not accept a certification from a public accountant that certifies a rollover deposit account as qualified and eligible to receive rollover distributions if the public accountant has an interest in the rollover deposit account as a: (i) Member; (ii) Spouse; or (iii) Designated beneficiary. (c)(1) If a member with an active purchase account dies, the member’s spouse, beneficiary, or legal representative shall have up to six (6) months from the member’s date of death to pay the balance of the purchase account unless the deadline is extended by the Executive Director of the Arkansas Teacher Retirement System for good cause. (2) If the member’s purchase account is not paid in full within six (6) months of the member’s date of death, the purchase account shall be closed and payments made towards the purchase account shall be considered as part of the member’s residual account balance. (d)(1) A purchase account that is paid in full after a final payment has been tendered shall not be cancelled. (2) A member’s purchase account may be cancelled if: (A) The member submits a written cancellation request to the system; and (B)(i) The system approves the cancellation request. (ii) The system may approve a cancellation request and refund a member’s purchase account if the purchase account: (a) Is an account that has been paid only with after-tax contributions; (b) Is an account that has been paid only with employer pick-up contributions and one (1) of the following applies: (1) All payments on the irrevocable payroll authorization have been completed; (2) The member terminates employment with the employer; or (3) The member retires; or (c) Is an account that has been paid only with rollover or transfer contributions and the rollover or transfer contributions may be rolled over or transferred to another qualified plan or refunded to the member after the deduction and payment of federal taxes. (iii)(a) If a member’s cancellation request is approved, the system shall refund the balance of the member’s purchase account without interest to the member. (b) The system shall refund interest to a member if a refund of interest is statutorily mandated under Arkansas Code § 24-7-612 or another applicable provision of the Arkansas Code.