Arkansas Code
Subchapter 11 - Contributions of Members to their Deposit Accounts
§ 24-4-1102. Member contributions

(a)
(1) The contributions of a member shall be five percent (5%) of the member's annual compensation and shall be placed in the member's deposit account as provided in § 24-4-401.
(2) Interest shall be paid on accumulated member contributions at the rate of two percent (2%) per annum.
(3) As used in this subsection, “compensation” has the same meaning as in § 24-4-101.

(b)
(1) For purposes of deferring federal and state income tax under 26 U.S.C. § 414(h)(2), as adopted by § 26-51-414, the employer shall pick up the member's contributions to the Arkansas Public Employees' Retirement System required by this section payable on or after July 1, 2005.
(2)
(A) Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of salary to a member.
(B) The employer shall be solely responsible for remitting member contributions to the system in a manner consistent with § 24-4-202, including without limitation compliance with deadlines and penalties.
(C) A deduction shall be made from each member's salary equal to the amount of the member's contribution picked up by the employer.
(D) For all other purposes, member contributions picked up by the employer shall be considered member contributions.

(c) Upon termination of covered service, a former member may request a refund of the former member's accumulated contributions under § 24-4-603, except that interest will be credited on all balances for service through the last completed fiscal year as provided in § 24-4-209(a).