Arkansas Code
Subchapter 3 - Correction of Erroneous Memberships
§ 24-2-304. Erroneous enrollment on or after January 1, 1979

(a)
(1) When it is discovered by an employee, employer, or a state retirement system that an employee became erroneously enrolled in a state retirement system on or after January 1, 1979, the employee may elect to remain a member of the retirement system of record or may become a member of the eligible retirement system.
(2) Subsections (b)-(d) of this section shall apply if the member chooses to become a member of the eligible retirement system.

(b) The retirement system of record shall refund to the employer all contributions, both employee and employer, that were made in behalf of the employee in question.
(c)
(1) The employer shall retain the contributions of both the employee and the employer that are refunded under subsection (b) of this section until the member is enrolled in the eligible retirement system.
(2) Upon receipt of the refunded contributions, the employer shall file with the eligible retirement system an application for membership by the employee and a history of covered employment and wages, including service refunded by the retirement system of record.

(d)
(1) The eligible retirement system shall furnish to both the employee and the employer a statement of the amount of contributions necessary to establish service credit in the eligible retirement system for the service refunded by the retirement system of record.
(2) In computing the cost of that service, the eligible retirement system shall include both employee and employer contribution rates in its computation.
(3) In paying the cost of establishing credit for the service in the eligible retirement system, the employer shall first use the employee refund from the retirement system of record and then as much of the employer refund as may be necessary. However, if all of the employer refund is not required to establish service credit, the remaining amount shall be paid into the General Education Fund.
(4) In the event the cost of establishing the service credit is in excess of both the employee and the employer contributions refunded by the retirement system of record, the excess amount shall be paid by the employee.

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