Arkansas 2023 Regular Session

Arkansas House Bill HB1201 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 107 of the Regular Session
3	2		LHR037 02-07-2023 09:19:08 LHR037
4	3
5	4		State of Arkansas As Engrossed: H2/7/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 HOUSE BILL 1201 3
8	7		4
9	8		By: Representative Warren 5
10	9		By: Senator K. Hammer 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO ENACT THE ARKANSAS TEACHER RET IREMENT 9
14	13		SYSTEM’S GENERAL OMN IBUS ACT; TO CORRECT CERTAIN 10
15	14		REFERENCES TO “ALTER NATE RETIREMENT PLAN ”, “COVERED 11
16	15		EMPLOYER”, “CREDITED SERVICE”, “RETIRANT” , “SERVICE 12
17	16		CREDIT”, AND “THE SY STEM”; TO AMEND AND ADD CERTAIN 13
18	17		DEFINITIONS APPLICABLE TO THE ARKANSAS TEAC HER 14
19	18		RETIREMENT SYSTEM; T O CLARIFY THE LAW CO NCERNING 15
20	19		BENEFIT INCREASES AN D COMPUTATION, DEADL INES, SYSTEM 16
21	20		ASSETS, TERMINATION SEPARATION PERIOD, S ERVICE 17
22	21		CREDIT, SECOND REVIE WS OF DISABILITY RET IREMENT 18
23	22		APPLICATIONS, A MEMBER’S RESIDUE, CO NTRACT BUYOUT 19
24	23		SETTLEMENT AGREEMENT S, THE DE MINIMIS AM OUNT, AND 20
25	24		OTHER VARIOUS PROVIS IONS APPLICABLE TO T HE ARKANSAS 21
26	25		TEACHER RETIREMENT S YSTEM; TO DECLARE AN EMERGENCY; 22
27	26		AND FOR OTHER PURPOS ES. 23
28	27		24
29	28		25
30	29		Subtitle 26
31	30		TO ENACT THE ARKANSAS TEACHER RETIREMENT 27
32	31		SYSTEM’S GENERAL OMNIBUS ACT; AND TO 28
33	32		DECLARE AN EMERGENCY. 29
34	33		30
35	34		31
36	35		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 32
37	36		33
38	37		SECTION 1. Arkansas Code § 21 -5-411(a)(1)(A)(v), concerning the 34
39	38		eligibility of certain retired employees to participate in the State and 35
40	39		Public School Life and Health Insurance Program, is amended to read as 36 As Engrossed: H2/7/23 HB1201
41	40
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43	42
44	43
45	44		follows: 1
46	45		(v) An alternate retirement plan of a qualifying 2
47	46		institution under as defined in § 24-7-801 24-7-202; and 3
48	47		4
49	48		SECTION 2. Arkansas Code § 24 -2-302(3)(D), concerning the 5
50	49		classification under the Arkansas Teacher Retirement System of a person 6
51	50		employed in a position requiring professional training or certification with 7
52	51		an area vocational-technical school or employed by the Arkansas Educational 8
53	52		Television Commission, is amended to read as follows: 9
54	53		(D) Any person employed in a position requiring 10
55	54		professional training or certification with an area vocational-technical 11
56	55		school or employed by the Arkansas Educational Television Commission, except 12
57	56		that employees of area vocational-technical schools and the Division of 13
58	57		Career and Technical Education, the Adult Education Section, and the Office 14
59	58		of Skills Development, who have elected to participate in an alternate 15
60	59		retirement plan established by §§ 24-7-901 and 24-7-903 — 24-7-908 § 24-7-901 16
61	60		et seq. shall be active members of the alternate retirement plan; and 17
62	61		18
63	62		SECTION 3. Arkansas Code § 24-2-401(3)(F), concerning the definition 19
64	63		of "reciprocal system" that is applicable to public employee retirement 20
65	64		plans, is amended to read as follows: 21
66	65		(F) An alternate retirement plan for: 22
67	66		(i) A college, university, or the Division of Higher 23
68	67		Education provided for under § 24-7-801 et seq.; or 24
69	68		(ii) A vocational-technical school or the Division 25
70	69		of Career and Technical Education, the Adult Education Section of the 26
71	70		Division of Workforce Services, the Division of Higher Education, and the 27
72	71		Office of Skills Development, with respect to plans provided for under § 24-28
73	72		7-901 et seq. as defined in § 24-7-202; or 29
74	73		30
75	74		SECTION 4. Arkansas Code § 24 -2-401(4)(D), concerning the definition 31
76	75		of "state employer" that is applicable to public employee retirement plans, 32
77	76		is amended to read as follows: 33
78	77		(D) A public employer who is: 34
79	78		(i) A college, university, or the Division of Higher 35
80	79		Education whose employees are covered by an alternate retirement plan 36 As Engrossed: H2/7/23 HB1201
81	80
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83	82
84	83
85	84		provided for under § 24-7-801 et seq.; or 1
86	85		(ii) A vocational-technical school or the Division 2
87	86		of Career and Technical Education, the Adult Education Section, and the 3
88	87		Office of Skills Development, whose employees are covered by an alternate 4
89	88		retirement plan provided for under § 24-7-901 et seq. that has an alternate 5
90	89		retirement plan as defined in § 24-7-202; 6
91	90		7
92	91		SECTION 5. Arkansas Code § 24 -2-402(g)(6), concerning death -in-service 8
93	92		benefits as to an alternate retirement plan, is amended to read as follows: 9
94	93		(6) If the reciprocal system is an alternate retirement plan 10
95	94		under § 24-7-801 et seq. or § 24-7-901 et seq. as defined in § 24-7-202, 11
96	95		death-in-service benefits shall be contingent on death-in-service benefits 12
97	96		having been provided by the alternate retirement plan and having been 13
98	97		selected by the member as a benefit. 14
99	98		15
100	99		SECTION 6. Arkansas Code § 24 -2-402(k), concerning the payment of 16
101	100		payable benefits in accordance with terms specified in a written alternate 17
102	101		retirement plan document, is amended to read as follows: 18
103	102		(k) If the reciprocal system is an alternate retirement plan for a 19
104	103		college, a university, or the Division of Higher Education provided for under 20
105	104		§ 24-7-801 et seq., or for a vocational-technical school or the Department of 21
106	105		Career Education provided for under § 24-7-901 et seq. as defined in § 24-7-22
107	106		202, the benefits payable shall be in accordance with terms specified in the 23
108	107		written alternate retirement plan document for purchasing the insurance 24
109	108		policies or annuity contracts, both fixed and variable in nature, for the 25
110	109		participants. 26
111	110		27
112	111		SECTION 7. Arkansas Code § 24-4-901(a)(1)(F), concerning credited 28
113	112		service and reciprocity under the Arkansas Public Employees' Retirement 29
114	113		System and the amount of annuity awarded to a member employed by an alternate 30
115	114		retirement plan, is amended to read as follows: 31
116	115		(F) An alternate retirement plan under § 24-8-101 et seq. 32
117	116		or § 24-9-201 et seq. as defined in § 24-7-202; or 33
118	117		34
119	118		SECTION 8. Arkansas Code § 24 -4-901(a)(3)(B), concerning credited 35
120	119		service and reciprocity under the Arkansas Public Employees' Retirement 36 As Engrossed: H2/7/23 HB1201
121	120
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123	122
124	123
125	124		System and the computation of final average compensation for credited service 1
126	125		in the Arkansas Judicial Retirement System or an alternate retirement plan, 2
127	126		is amended to read as follows: 3
128	127		(B) Compensation for credited service in the Arkansas 4
129	128		Judicial Retirement System or an alternate retirement plan under § 24-8-101 5
130	129		et seq. or § 24-9-201 et seq. as defined in § 24-7-202 shall not be used to 6
131	130		determine final average compensation. 7
132	131		8
133	132		SECTION 9. Arkansas Code § 24 -4-901(b)(1)(F), concerning credited 9
134	133		service and reciprocity under the Arkansas Public Employees ’ Retirement 10
135	134		System and what criteria an annuity is determined from when a member of an 11
136	135		alternate retirement plan retires due to disability or dies in service, is 12
137	136		amended to read as follows: 13
138	137		(F) An alternate retirement plan under § 24-8-101 et seq. 14
139	138		or § 24-9-201 et seq. as defined in § 24-7-202; or 15
140	139		16
141	140		SECTION 10. Arkansas Code § 24 -4-901(b)(4), concerning credited 17
142	141		service and reciprocity under the Arkansas Public Employees ’ Retirement 18
143	142		System and the conti ngency of disability and death -in-service benefits being 19
144	143		awarded if provision of the benefits were provided to the alternate 20
145	144		retirement plan and were selected by the member as a benefit, is amended to 21
146	145		read as follows: 22
147	146		(4) If a member has service credit in an alternate retirement 23
148	147		plan under § 24-8-101 et seq. or § 24-9-201 et seq. as defined in § 24-7-202, 24
149	148		disability and death-in-service benefits shall be contingent on provision of 25
150	149		those benefits having been provided by the alternate retirement plan and 26
151	150		having been selected by the member as a benefit. 27
152	151		28
153	152		SECTION 11. Arkansas Code § 24 -4-901(d)(6), concerning credited 29
154	153		service and reciprocity under the Arkansas Public Employees ’ Retirement 30
155	154		System and the provision of reciprocal service credits between contri butory 31
156	155		and noncontributory members of an alternate retirement plan, is amended to 32
157	156		read as follows: 33
158	157		(6) An alternate retirement plan for a college, university, or 34
159	158		the Division of Higher Education provided for under § 24-8-101 et seq. or for 35
160	159		a vocational-technical school or the Division of Career and Technical 36 As Engrossed: H2/7/23 HB1201
161	160
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163	162
164	163
165	164		Education, the Adult Education Section, and the Office of Skills Development, 1
166	165		provided for under § 24-9-201 et seq. as defined in § 24-7-202; and 2
167	166		3
168	167		SECTION 12. Arkansas Code § 24 -7-202(6), concerning the definition of 4
169	168		"alternate retirement plan" applicable to the Arkansas Teacher Retirement 5
170	169		System, is amended to read as follows: 6
171	170		(6) "Alternate retirement plan" means a retirement plan based on 7
172	171		the purchase of contracts providing retirement and death benefits for 8
173	172		employees under § 24-7-801 et seq. or § 24-7-901 et seq. § 24-7-801 et seq., 9
174	173		§ 24-7-901 et seq., or § 24 -7-1001 et seq.; 10
175	174		SECTION 13. Arkansas Code § 24 -7-202(7), concerning the definition of 11
176	175		"annuity" applicable to the Arkansas Teacher Retirement System, is amended to 12
177	176		read as follows: 13
178	177		(7) “Annuity” means an amount payable to a retirant retiree each 14
179	178		fiscal year by the A rkansas Teacher Retirement System in equal monthly 15
180	179		installments; 16
181	180		17
182	181		SECTION 14. Arkansas Code § 24 -7-202(14), concerning the definition of 18
183	182		"credited service" applicable to the Arkansas Teacher Retirement System, is 19
184	183		amended to read as follows: 20
185	184		(14) “Credited service” means service which is creditable 21
186	185		credited as service by the Arkansas Teacher Retirement System; 22
187	186		23
188	187		SECTION 15. Arkansas Code § 24 -7-202(19)(D)(iii), concerning the 24
189	188		definition of "employment with a school" applicable to the Arkansas Teacher 25
190	189		Retirement System, is amended to read as follows: 26
191	190		(iii) Each education-related agency or organization 27
192	191		shall be: 28
193	192		(a) Approved Be approved according to rules 29
194	193		established by the board Board of Trustees of the Arkansas Teacher Retirement 30
195	194		System; 31
196	195		(b) Considered an employer under subdivision 32
197	196		(18) of this section Become a covered employer at the time that an employee 33
198	197		elects to become or remain a member of the Arkansas Teacher Retirement 34
199	198		System; and 35
200	199		(c) Be considered a covered employer only for 36 As Engrossed: H2/7/23 HB1201
201	200
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203	202
204	203
205	204		each employee who elects to become or remain a member of the Arkansas Teacher 1
206	205		Retirement System; and 2
207	206		(d) Responsible Be responsible for all 3
208	207		required employer contributions; 4
209	208		5
210	209		SECTION 16. Arkansas Code § 24 -7-202(21)(B), concerning the definition 6
211	210		of "inactive member" applicable to the Arkansas Teacher Retirement System, is 7
212	211		amended to read as follows: 8
213	212		(B) Not a retirant retiree; 9
214	213		10
215	214		SECTION 17. Arkansas Code § 24 -7-202(28), concerning the definition of 11
216	215		"normal retirement age" applicable to the Ar kansas Teacher Retirement System, 12
217	216		is amended to read as follows: 13
218	217		(28) “Normal retirement age” means: 14
219	218		(A) Sixty-five (65) years of age if the member has at 15
220	219		least five (5) years of actual service or reciprocal service; or 16
221	220		(B) At least sixty (60) years of age if the member has a 17
222	221		combined total of thirty-eight (38) years or more of credited service in the 18
223	222		Arkansas Teacher Retirement System, Teacher Deferred Retirement Option Plan, 19
224	223		or reciprocal service in another eligible state retirement system Sixty (60) 20
225	224		years of age or older if the member’s age and the member’s combined years of 21
226	225		credited service in the Arkansas Teacher Retirement System, Teacher Deferred 22
227	226		Retirement Option Plan, or reciprocal service in another eligible state 23
228	227		retirement system tota l ninety-eight (98); 24
229	228		25
230	229		SECTION 18. Arkansas Code § 24 -7-202(32), concerning the definition of 26
231	230		"retiree" or "retirant" under the Arkansas Teacher Retirement System, is 27
232	231		amended to read as follows: 28
233	232		(32) “Retiree” or “retirant” means a member receiving an 29
234	233		Arkansas Teacher Retirement System annuity; 30
235	234		31
236	235		SECTION 19. Arkansas Code § 24 -7-202, concerning definitions 32
237	236		applicable to the Arkansas Teacher Retirement System, is amended to add 33
238	237		additional subdivisions to read as follows: 34
239	238		(45)(A) “Benefit enhancement” means any change to the current 35
240	239		benefit policy for a retired, active, or inactive member of the Arkansas 36 As Engrossed: H2/7/23 HB1201
241	240
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243	242
244	243
245	244		Teacher Retirement System or T -DROP participant that increases the 1
246	245		amortization period by one (1) year or more. 2
247	246		(B) Benefit enhancement does not include any change that is 3
248	247		required to comply with federal law, prevent a manifest injustice, correct an 4
249	248		error, avoid an unintended consequence of an existing statutory provision, or 5
250	249		prevent undue hardship on any benefit particip ant or class of benefit 6
251	250		participants. 7
252	251		(46) “Employment with a covered employer ” means the employment 8
253	252		of an employee that would require a covered employer to pay employer 9
254	253		contributions to the system; and 10
255	254		(47) "Residue" for the purposes of § 24 -7-701 et seq. means the 11
256	255		difference between the accumulated contributions and regular interest 12
257	256		credited to the retirement reserve account as of the member's effective date 13
258	257		of retirement and the total amount of retirement annuities paid. 14
259	258		15
260	259		SECTION 20. Arkansas Code § 24-7-207 is amended to read as follows: 16
261	260		24-7-207. Increase in benefit amount. 17
262	261		(a)(1) The Board of Trustees of the Arkansas Teacher Retirement System 18
263	262		is authorized by this act to raise the level of benefits provided to the 19
264	263		current retirants retirees and other beneficiaries of the Arkansas Teacher 20
265	264		Retirement System to a comparable level increase to match the increase in 21
266	265		benefits that would accrue to active members as a result of any reduction of 22
267	266		the calculation of “final average salary” to not less than a three-year 23
268	267		period nor more than the five-year period in accordance with any rules the 24
269	268		board might promulgate. 25
270	269		(2) The board may raise the level of benefits to a comparable 26
271	270		level increase that matches the increase in benefits that would accrue to 27
272	271		active members as a result of any reduction caused by setting the applicable 28
273	272		number of years used in computing final average salary for retirement 29
274	273		benefits at not less than three (3) years and not more than five (5) years in 30
275	274		accordance with any rules that th e board may promulgate. 31
276	275		(b) The amount of any increase for retirants retirees and other 32
277	276		beneficiaries shall also be determined in accordance with the rules of the 33
278	277		board as is actuarially appropriate for the system. 34
279	278		35
280	279		SECTION 21. Arkansas Code § 24 -7-301(4) and (5), concerning the 36 As Engrossed: H2/7/23 HB1201
281	280
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283	282
284	283
285	284		membership of the Board of Trustees of the Arkansas Teacher Retirement System 1
286	285		and the election thereof, are amended to read as follows: 2
287	286		(4)(A) Three (3) retirants retirees shall be elected retirant 3
288	287		retiree trustees by the retirees of the system. 4
289	288		(B) Each retirant retiree trustee shall be a retirant 5
290	289		retiree with an annuity being paid by the system at the beginning of his or 6
291	290		her term of office; 7
292	291		(5) The member and retirant retiree trustees shall be elected in 8
293	292		accordance with rules as have been adopted by the board to govern the 9
294	293		elections; and 10
295	294		11
296	295		SECTION 22. Arkansas Code § 24 -7-302(a)(2)(B), concerning the 12
297	296		ineligibility of a retirant trustee to serve on the Board of Trustees of the 13
298	297		Arkansas Teacher Retirement System after becoming active, is amended to read 14
299	298		as follows: 15
300	299		(B) A retirant retiree trustee is ineligible to serve 16
301	300		after becoming active. 17
302	301		18
303	302		SECTION 23. Arkansas Code § 24 -7-305(b)(5), concerning the ability of 19
304	303		the Board of Trustees of the A rkansas Teacher Retirement System to set a de 20
305	304		minimis amount to charge for distributing or collecting various moneys, is 21
306	305		amended to read as follows: 22
307	306		(5) The board may set or amend by a motion or resolution at any 23
308	307		board meeting a de minimis amount of twenty-five dollars ($25.00) or less 24
309	308		concerning the system's obligation to distribute or collect payments, 25
310	309		penalties, interest, funds, or moneys. 26
311	310		27
312	311		SECTION 24. Arkansas Code § 24 -7-403(b), concerning the restriction of 28
313	312		trustees, officers, and employees of the Board of Trustees of the Arkansas 29
314	313		Teacher Retirement System from holding an interest in the gains or profits of 30
315	314		any of the board's investments, is amended to read as follows: 31
316	315		(b)(1) Except as to the rights of a member, retirant retiree, or 32
317	316		beneficiary, no trustee and no officer or employee a trustee, officer, or 33
318	317		employee of the board shall not have any direct or indirect interest, direct 34
319	318		or indirect, in the gains or profits of any investment made by the board. 35
320	319		(2) Nor shall any of them, directly or indirectly, for himself 36 As Engrossed: H2/7/23 HB1201
321	320
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323	322
324	323
325	324		or herself or as an agent, in any manner use the assets of the system except 1
326	325		to make such current and necessary payments as are authorized by the board; 2
327	326		nor shall any of them become an endorser or surety or become in any manner an 3
328	327		obligor for moneys loaned by or borrowed from the board A trustee, officer, 4
329	328		or employee of the board shall not directly or indirectly use the assets of 5
330	329		the system in any manner for himself or herself or as an agent . 6
331	330		(3) A trustee, officer , or employee of the board shall not in 7
332	331		any manner become an endorser, surety, or obligor for moneys loaned by or 8
333	332		borrowed from the board. 9
334	333		(4) A trustee, officer, or employee of the board may make such 10
335	334		current and necessary payments as are authorized by the board. 11
336	335		12
337	336		SECTION 25. Arkansas Code § 24 -7-408 is amended to read as follows: 13
338	337		24-7-408. Retirement fund assets accounts — Retirement reserve 14
339	338		account. 15
340	339		(a) The retirement reserve account shall be the account from which 16
341	340		shall be paid all annuities and benefits in lieu of annuities payable as 17
342	341		provided in this act to retirants retirees who retired on account of 18
343	342		superannuation or disability and to beneficiaries of such retirants retirees. 19
344	343		(b) If a disability retirant retiree returns to teaching service: 20
345	344		(1) The amount of his or her accumulated contributions at the 21
346	345		time of his or her disability retirement shall be transferred from the 22
347	346		retirement reserve account to the members' deposit account; and 23
348	347		(2) The remainder of his or her annuity reserve at the time of 24
349	348		return shall be transferred from the retirement reserve account to the 25
350	349		employer accumulation account. 26
351	350		27
352	351		SECTION 26. Arkansas Code § 24 -7-501(a)(2)(B)(iii), concerning the 28
353	352		employer contribution rate under the Arkansas Teacher Retirement System being 29
354	353		established at a rate necessary to fund liabilities, is amended to read as 30
355	354		follows: 31
356	355		(iii) The employer contribution rate for this closed 32
357	356		system shall be established at a rate necessary to fund all present and 33
358	357		future liabilities until such time as there are no longer members, retirants 34
359	358		retirees, or deferred annuitants. 35
360	359		36 As Engrossed: H2/7/23 HB1201
361	360
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363	362
364	363
365	364		SECTION 27. Arkansas Code § 24 -7-502(a)(6), concerning restrictions on 1
366	365		a member during his or her termination separation period under the Arkansas 2
367	366		Teacher Retirement System, is amended to read as follows: 3
368	367		(6) During the termination separation period, the member shall 4
369	368		remain terminated and shall not: 5
370	369		(A) Form an employment relationship with any system-6
371	370		covered employer a covered employer; 7
372	371		(B) Render any compensable services to or on behalf of any 8
373	372		system-covered employer a covered employer, except that a member may provide 9
374	373		perform volunteer activities at a system-covered employer for a covered 10
375	374		employer that does do not have the effect of holding a position open for the 11
376	375		member during a termination separation period; and 12
377	376		(C) Exercise any authority to act as a representative of 13
378	377		any system-covered employer a covered employer or exercise any authority over 14
379	378		employees of any system-covered employer a covered employer; or 15
380	379		(D) Be indirectly employed by or through an independent 16
381	380		contractor, limited liability company, partnership, corporation, or legal 17
382	381		entity that is employed by a covered employer if the member has substantial 18
383	382		control of the employer -employee relationship, including without limitation 19
384	383		the ability to negotiate rates of pay with the covered employer or assign 20
385	384		work and work hours to the member . 21
386	385		22
387	386		SECTION 28. Arkansas Code § 24-7-601(e)(5), concerning the provision 23
388	387		of a benefit amount that is not dependent on length of credited service under 24
389	388		the Arkansas Teacher Retirement System, is amended to read as follows: 25
390	389		(5) When the Arkansas Teacher Retirement System provides a 26
391	390		benefit amount that is not dependent on length of credited service, the 27
392	391		benefit amount shall be reduced to the proportion that actual system service 28
393	392		bears to total reciprocal system-credited service credited by a reciprocal 29
394	393		system. 30
395	394		31
396	395		SECTION 29. Arkansas Code § 24 -7-601(g)(1), concerning concurrent 32
397	396		service earned in the Arkansas Teacher Retirement System and reciprocal 33
398	397		systems, is amended to add an additional subdivision to read as follows: 34
399	398		(C) A member’s part-time employment with a PSHE em ployer 35
400	399		or an employer covered by the Arkansas Public Employees ’ Retirement System 36 As Engrossed: H2/7/23 HB1201
401	400
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403	402
404	403
405	404		shall not prevent the member from earning service credit under the Arkansas 1
406	405		Teacher Retirement System if the member does not earn service credit in an 2
407	406		alternate retirement pl an or the Arkansas Public Employees ’ Retirement 3
408	407		System. 4
409	408		5
410	409		SECTION 30. Arkansas Code § 24 -7-602(c)(1), concerning military 6
411	410		service credit under the Arkansas Teacher Retirement System when a member 7
412	411		leaves employment with a school to serve in the uniformed s ervices of the 8
413	412		United States and later returns to employment with a school, is amended to 9
414	413		read as follows: 10
415	414		(c)(1)(A) Effective December 12, 1994, a A member who leaves 11
416	415		employment with a school or employment with a covered employer to serve, on a 12
417	416		voluntary or involuntary basis, in the uniformed services of the United 13
418	417		States and returns to employment with a school or employment with a covered 14
419	418		employer shall be treated as not having incurred a break in service with the 15
420	419		employer. 16
421	420		(B) The employer shall certify to the system that 17
422	421		reemployment was in accordance with the requirements set forth in section 18
423	422		4312 of the Uniformed Services Employment and Reemployment Rights Act of 19
424	423		1994, Pub. L. No. 103-353. 20
425	424		21
426	425		SECTION 31. Arkansas Code § 24-7-701(a)(1)(B), concerning the time 22
427	426		frame necessary for a member to submit a complete application for voluntary 23
428	427		retirement under the Arkansas Teacher Retirement System, is amended to read 24
429	428		as follows: 25
430	429		(B) If a member fails to submit a complete retirement 26
431	430		application within six (6) calendar months after by the end of the sixth full 27
432	431		calendar month immediately following the effective date of benefits, 28
433	432		including all additional documentation required by the system, the 29
434	433		application shall be void unless an extension has been granted by the system 30
435	434		Executive Director of the Arkansas Teacher Retirement System. 31
436	435		32
437	436		SECTION 32. Arkansas Code § 24 -7-701(e)(1), concerning when a member 33
438	437		may cancel an application for voluntary retirement benefits under the 34
439	438		Arkansas Teacher Retirement System, is amended to read as follows: 35
440	439		(e)(1) A member may cancel an application for voluntary retirement 36 As Engrossed: H2/7/23 HB1201
441	440
442	441		12 02-07-2023 09:19:08 LHR037
443	442
444	443
445	444		benefits up to two (2) calendar months after any time before the end of the 1
446	445		second full calendar month immediately following the effective date of 2
447	446		benefits. 3
448	447		4
449	448		SECTION 33. Arkansas Code § 24 -7-702(a)(1)(A) and (B), concerning a 5
450	449		member's application for voluntary early retirement under the Arkansas 6
451	450		Teacher Retirement System, are amended to read as follows: 7
452	451		(a)(1)(A) Except as provided under subdivision (a)(2) of this section, 8
453	452		an active or inactive member who has a combined total of twenty-five (25) or 9
454	453		more years of actual and reciprocal service, including purchased or free 10
455	454		credited service, but has not attained sixty (60) years of age and is not 11
456	455		eligible for retirement under § 24-7-701 may voluntarily retire early by 12
457	456		filing a written application with the Board of Trustees of the Arkansas 13
458	457		Teacher Retirement System Arkansas Teacher Retirement System. 14
459	458		(B) If a member fails to submit a complete retirement 15
460	459		application within six (6) calendar months of by the end of the sixth full 16
461	460		calendar month immediately following the effective date of benefits, 17
462	461		including all additional documentation required by the Arkansas Teacher 18
463	462		Retirement System, the application shall be void unless an extension is 19
464	463		granted by the system Executive Director of the Arkansas Teacher Retirement 20
465	464		System. 21
466	465		22
467	466		SECTION 34. Arkansas Code § 24 -7-702(f)(1), concerning when a member 23
468	467		may cancel an application for early voluntary retirement benefits under the 24
469	468		Arkansas Teacher Retirement System, is amended to read as follows: 25
470	469		(f)(1) A member may cancel an application for early voluntary 26
471	470		retirement benefits up to two (2) full calendar months after the effective 27
472	471		date of benefits. 28
473	472		29
474	473		SECTION 35. Arkansas Code § 24 -7-704(a)(1)(D)(i) and (ii), concerning 30
475	474		when a member must submit an application and accompanying documentation for 31
476	475		disability retirement under the Arkansas Teacher Ret irement System, are 32
477	476		amended to read as follows: 33
478	477		(D)(i) A member has six (6) calendar months from until the 34
479	478		end of the sixth full calendar month immediately following the date of his or 35
480	479		her application for disability retirement to submit a completed application 36 As Engrossed: H2/7/23 HB1201
481	480
482	481		13 02-07-2023 09:19:08 LHR037
483	482
484	483
485	484		and accompanying documentation. 1
486	485		(ii) If a member does not provide all accompanying 2
487	486		documentation requested by the system within the six (6) calendar months by 3
488	487		the end of the sixth full calendar month immediately following the date of 4
489	488		his or her application for disability retirement, the system shall: 5
490	489		(a) Submit the application to the medical 6
491	490		committee for review as complete; or 7
492	491		(b) Withdraw the application at the request of 8
493	492		the member unless an extension is granted by the system Executive Director of 9
494	493		the Arkansas Teacher Retirement System. 10
495	494		11
496	495		SECTION 36. Arkansas Code § 24 -7-704(a)(1)(G) and (H), concerning 12
497	496		actions by the medical committee related to when a member submits an 13
498	497		application for disability retirement under the Arkansas Teacher Retirement 14
499	498		System, are amended to read as follows: 15
500	499		(G) If the medical committee requests additional 16
501	500		documentation upon initial review, a member has six (6) calendar months from 17
502	501		until the end of the sixth full calendar month immediately following the date 18
503	502		of a medical committee request to submit any additional accompanying 19
504	503		documentation unless an extension is granted by the system executive 20
505	504		director. 21
506	505		(H)(i) If the medical committee finds that a member is not 22
507	506		qualified to receive disability benefits, written notice of the medical 23
508	507		committee's finding shall be sent to the member and the member may request a 24
509	508		second review provided the member submits additional medical documentation. 25
510	509		(ii)(a) A second review may be requested one (1) 26
511	510		time A member may request a second review one (1) time for each application 27
512	511		for disability retirement filed by the member. 28
513	512		(b) A member's option to request a second 29
514	513		review does not apply to a disability retiree who applies for a review under 30
515	514		subsection (b) of this section. 31
516	515		(iii) The member has six (6) calendar months until 32
517	516		the end of the sixth full calendar month immediately following the date of 33
518	517		the written notice to submit additional medical documentation unless an 34
519	518		extension is granted by the system executive director. 35
520	519		36 As Engrossed: H2/7/23 HB1201
521	520
522	521		14 02-07-2023 09:19:08 LHR037
523	522
524	523
525	524		SECTION 37. Arkansas Code § 24 -7-704(a)(3)(B), concerning when a 1
526	525		member must submit all documents and election forms required to begin annuity 2
527	526		payments for disability retirement under the Arkansas Teacher Retirement 3
528	527		System, is amended to read as follows: 4
529	528		(B) If a member does not submit the required documents 5
530	529		within six (6) calendar months after by the end of the sixth full calendar 6
531	530		month immediately following the date on which the medical committee finds 7
532	531		that the member qualifies to receive disability benefits, the member's 8
533	532		application shall be void unless an extension has been granted by the system 9
534	533		executive director. 10
535	534		11
536	535		SECTION 38. Arkansas Code § 24-7-704(a)(4), concerning restrictions on 12
537	536		when a member is eligible to begin receiving disability retirement payments 13
538	537		under the Arkansas Teacher Retirement System, is amended to read as follows: 14
539	538		(4) To begin receiving disability retirement, a member shall 15
540	539		not: 16
541	540		(A) Be employed by a system-covered employer covered 17
542	541		employer; or 18
543	542		(B) Be indirectly employed by or through an independent 19
544	543		contractor, limited liability company, partnership, corporation, or legal 20
545	544		entity that is employed by a system-covered employer if the member has 21
546	545		substantial control of the employer-employee relationship, including without 22
547	546		limitation the ability to negotiate rates of pay with the system-covered 23
548	547		employer or assign work and work hours to the member Unless otherwise 24
549	548		provided by law, perform any action described in § 24-7-502(a)(6). 25
550	549		26
551	550		SECTION 39. Arkansas Code § 24 -7-704(b)(3)(C)(iii), concerning actions 27
552	551		not taken by a disability retiree under the Arkansas Teacher Retirement 28
553	552		System that will cause termination of disability retirement benefits, is 29
554	553		amended to read as follows: 30
555	554		(iii) Apply for a review by the system's medical 31
556	555		committee within three (3) months of disability benefits ceasing by the end 32
557	556		of the third full calendar month immediately following the cessation of 33
558	557		disability benefits due to the lack of a Social Security Administration 34
559	558		determination letter finding that the disability retiree is unable to perform 35
560	559		his or her former work duties as described in subdivision (a)(1)(E)(iii) of 36 As Engrossed: H2/7/23 HB1201
561	560
562	561		15 02-07-2023 09:19:08 LHR037
563	562
564	563
565	564		this section. 1
566	565		2
567	566		SECTION 40. Arkansas Code § 24 -7-704(b)(3)(D)(i), concerning certain 3
568	567		conditions that allow a disability retiree under the Arkansas Teacher 4
569	568		Retirement System to seek a review by the system's medical committee, is 5
570	569		amended to read as follows: 6
571	570		(D)(i) A disability retiree who seeks and fails to receive 7
572	571		a determination letter finding the disability retiree is unable to perform 8
573	572		his or her former work duties as described in subdivision (a)(1)(E)(iii) of 9
574	573		this section by the Social Security Administration may seek a review 10
575	574		permitted under subdivision (b)(3)(C)(iii) of this section no earlier than 11
576	575		three (3) full calendar months before the date on which the member's 12
577	576		disability retirement would otherwise end and no later than three (3) months 13
578	577		after the end of the third full calendar month immediately following the 14
579	578		termination of disability retirement. 15
580	579		16
581	580		SECTION 41. Arkansas Code § 24 -7-706(a)-(e), concerning annuity 17
582	581		options under the Arkansas Teacher Retirement System, are amended to read as 18
583	582		follows: 19
584	583		(a)(1) Before the date the first payment of his or her annuity becomes 20
585	584		due, a member may elect to receive his or her annuity as a straight life 21
586	585		annuity, or he or she may elect to receive the actuarial equivalent, at that 22
587	586		time, of his or her straight life annuity in a re duced annuity payable 23
588	587		throughout his or her life. 24
589	588		(2) The member may nominate a beneficiary, in accordance with 25
590	589		one (1) of the following options: 26
591	590		(A) Option A — 100% Survivor Annuity. 27
592	591		(i) Under Option A, upon the death of a retirant 28
593	592		retiree, his or her reduced annuity shall be continued throughout the life of 29
594	593		and paid to such person as he or she shall have nominated by written 30
595	594		designation executed and filed with the Board of Trustees of the Arkansas 31
596	595		Teacher Retirement System before the date the first payment of his or her 32
597	596		annuity becomes due. 33
598	597		(ii) The person designated as a beneficiary by the 34
599	598		retirant retiree shall be: 35
600	599		(a) The retirant's retiree's spouse for not 36 As Engrossed: H2/7/23 HB1201
601	600
602	601		16 02-07-2023 09:19:08 LHR037
603	602
604	603
605	604		less than one (1) year immediately preceding the first payment due date; or 1
606	605		(b) A dependent child of the retirant retiree 2
607	606		who has been adjudged physically or mentally incapacitated by a court of 3
608	607		competent jurisdiction; 4
609	608		(B) Option B — 50% Survivor Annuity. 5
610	609		(i) Under Option B, upon the death of a retirant 6
611	610		retiree, one-half (½) of his or her reduced annuity shall be continued 7
612	611		throughout the life of and paid to such person as he or she has nominated by 8
613	612		written designation executed and filed with the board before the date the 9
614	613		first payment of his or her annuity becomes due. 10
615	614		(ii) The person designated as a beneficiary by the 11
616	615		retirant retiree shall be: 12
617	616		(a) The retirant's retiree's spouse for not 13
618	617		less than one (1) year immediately preceding the first payment due date; or 14
619	618		(b) A dependent child of the retirant retiree 15
620	619		who has been adjudged physically or mentally incapacitated by a court of 16
621	620		competent jurisdiction; or 17
622	621		(C) Option C — Annuity for Ten (10) Years Certain and Life 18
623	622		Thereafter. 19
624	623		(i) Under Option C, a retirant retiree shall receive 20
625	624		a reduced annuity payable throughout his or her life with the provision that 21
626	625		if he or she dies before he or she has received one hundred twenty (120) 22
627	626		monthly annuity payments, the payments shall be continued for the remainder 23
628	627		of the period of one hundred twenty (120) months and paid to such persons in 24
629	628		equal shares as the retirant retiree has nominated by written designation 25
630	629		executed and filed with the board. 26
631	630		(ii) If the designated beneficiaries predecease the 27
632	631		retirant retiree, the retirant retiree may nominate successor beneficiaries 28
633	632		or may elect to return to his or her single lifetime benefit equivalent by 29
634	633		written designation executed and filed with the board, to be effective the 30
635	634		month following receipt of his or her election by the Arkansas Teacher 31
636	635		Retirement System. 32
637	636		(iii)(a) If the designated beneficiary is the spouse 33
638	637		of the retirant retiree and the marriage ends in divorce or other marriage 34
639	638		dissolution, the retirant retiree may: 35
640	639		(1) Nominate a successor beneficiary; or 36 As Engrossed: H2/7/23 HB1201
641	640
642	641		17 02-07-2023 09:19:08 LHR037
643	642
644	643
645	644		(2) Elect to return to his or her single 1
646	645		lifetime benefit equivalent. 2
647	646		(b) The nomination or election made under 3
648	647		subdivision (a)(2)(C)(iii)(a) of this section shall be in writing, executed 4
649	648		by the retirant retiree, and filed with the board, to be effective the month 5
650	649		following receipt of his or her election by the system. 6
651	650		(iv) If no designated beneficiary survives the 7
652	651		retirant retiree, the annuity reserve for the remainder of the annuity 8
653	652		payments shall be paid to the retirant's retiree's estate. 9
654	653		(v) If the last designated beneficiary receiving 10
655	654		annuity payments dies before all annuity payments are made, the annuity 11
656	655		reserve for the remainder of the annuity payments shall be paid to the 12
657	656		beneficiary's estate. 13
658	657		(vi) Effective the month following completion of the 14
659	658		one-hundred-twenty-month period, the retirant's retiree's annuity shall 15
660	659		return to his or her single lifetime benefit equivalent. 16
661	660		(3) In addition to the persons eligible to be designated as a 17
662	661		beneficiary under either Option A or Option B in subdivision (a)(2) of this 18
663	662		section, the board may promulgate rules concerning the addition of classes of 19
664	663		eligible persons to be designated as a beneficiary under this section and for 20
665	664		the rights of option beneficiaries of deceased disability retirees under § 21
666	665		24-7-704. 22
667	666		(b)(1)(A) If a member's marital status changes after retirement due to 23
668	667		the death of the member's spouse, or a divorce or marriage dissolution from 24
669	668		the member's spouse who is also the member's designated beneficiary, then the 25
670	669		member may elect to cancel any optional plan designating the former spouse as 26
671	670		a beneficiary. 27
672	671		(B) A member's election under subdivision (b)(1)(A) of 28
673	672		this section shall cause the member to return to his or her lifetime benefit 29
674	673		equivalent, to be effective the month following the system's receipt of the 30
675	674		approved form. 31
676	675		(2) A retirant retiree who is receiving a single lifetime 32
677	676		benefit and who marries after retirement may elect to cancel his or her 33
678	677		single lifetime benefit and may elect an annuity providing continuing 34
679	678		lifetime benefits to his or her spouse under rules promulgated by the board. 35
680	679		(c) If a member fails to elect an option, his or her annuity shall be 36 As Engrossed: H2/7/23 HB1201
681	680
682	681		18 02-07-2023 09:19:08 LHR037
683	682
684	683
685	684		paid to him or her as a straight life annuity. 1
686	685		(d)(1) Notwithstanding anything contained in this section to the 2
687	686		contrary, the residue beneficiary under § 24-7-709 may elect to cancel the 3
688	687		form of annuity in effect and elect Option A — 100% Survivor Annuity upon the 4
689	688		death of a retirant retiree on or after July 1, 1989, if: 5
690	689		(A) The retirant retiree died within one (1) year 6
691	690		following the effective date of retirement; 7
692	691		(B) The retirant retiree was receiving a straight life 8
693	692		annuity; and 9
694	693		(C) The residue beneficiary otherwise qualifies for an 10
695	694		Option A — 100% Survivor Annuity. 11
696	695		(2) The election to change may be made only one (1) time and 12
697	696		shall be on a form approved by the system. 13
698	697		(3) The election form must be received by the system within one 14
699	698		hundred twenty (120) days of the death of the retiree. 15
700	699		(e)(1) Notwithstanding anything in this section to the contrary, a 16
701	700		retirant retiree who retired on or after July 1, 1994, may elect to cancel 17
702	701		his or her election made at retirement for receiving an annuity and elect 18
703	702		another option, provided that he or she: 19
704	703		(A) Does so within one (1) year after July 1, 1995, or 20
705	704		within one (1) year of retirement; 21
706	705		(B) Files with the system a new election form approved by 22
707	706		the system; and 23
708	707		(C)(i) Repays to the system the difference between the 24
709	708		amount of the annuity received when he or she retired and the new annuity due 25
710	709		as a result of the election change, plus interest from July 1, 1994, or his 26
711	710		or her retirement date, whichever is later, to the date of payment in full. 27
712	711		(ii) The difference shall be calculated 28
713	712		retroactively to July 1, 1994, or his or her retirement date, whichever is 29
714	713		later. 30
715	714		(2) The election to change shall be made only one (1) time. 31
716	715		(3) The election change shall be effective retroactively to the 32
717	716		effective date of his or her annuity. 33
718	717		34
719	718		SECTION 42. Arkansas Code § 24 -7-707(d), concerning when a member must 35
720	719		submit an application for deferred retirement under the Arkansas Teacher 36 As Engrossed: H2/7/23 HB1201
721	720
722	721		19 02-07-2023 09:19:08 LHR037
723	722
724	723
725	724		Retirement System, is amended to read as follows: 1
726	725		(d) If a member fails to submit a complete deferred retirement 2
727	726		application within six (6) calendar months of by the end of the sixth full 3
728	727		calendar month immediately following the effective date of benefits, 4
729	728		including all additional documentation required by the system, the 5
730	729		application shall be void unless an extension is granted by the system 6
731	730		Executive Director of the Arkansas Teacher Retirement System . 7
732	731		8
733	732		SECTION 43. Arkansas Code § 24 -7-707(e)(1), concerning when a member 9
734	733		may cancel an application for deferred retirement under the Arkansas Teacher 10
735	734		Retirement System, is amended to read as follows: 11
736	735		(e)(1) A member may cancel an application for deferred retirement 12
737	736		benefits any time before two (2) calendar months from the end of the second 13
738	737		full calendar month immediately following the effective date of benefits. 14
739	738		15
740	739		SECTION 44. Arkansas Code § 24 -7-709 is amended to read as follows: 16
741	740		24-7-709. Disposition of member retiree contributions — Residue. 17
742	741		(a)(1)(A) If a retiree and his or her option annuitants, if any, die 18
743	742		before receiving annuity payments equal to the member's retiree's residue 19
744	743		amount, then the residue amount shall be paid to such persons as the retiree 20
745	744		shall have nominated by written designation duly one (1) or more 21
746	745		beneficiaries nominated by the retiree in a written designation that is 22
747	746		executed and filed with the Arkansas Teacher Retirement System. 23
748	747		(B) As used in this subchapter, “residue” means the 24
749	748		difference between the accumulated contributions and regular interest 25
750	749		credited to the retirement reserve account as of the member's retirement 26
751	750		effective date and the total amount of retirement annuities paid. 27
752	751		(2) If a retiree designates more than one (1) beneficiary, the 28
753	752		residue shall be divided equally among each designated beneficiary. 29
754	753		(3) If a retiree and his or her option annuitants die and the 30
755	754		member has failed to designate a beneficiary or if all designated 31
756	755		beneficiaries have predeceased the retiree, the residue shall be paid to the 32
757	756		retiree's estate. 33
758	757		(4) If all designated beneficiaries predecease the retiree, the 34
759	758		residue shall be paid to the estate of the most recently deceased designated 35
760	759		beneficiary. 36 As Engrossed: H2/7/23 HB1201
761	760
762	761		20 02-07-2023 09:19:08 LHR037
763	762
764	763
765	764		(b) If upon the termination of the option annuity no surviving 1
766	765		beneficiary designated by the member retiree survives and it is impracticable 2
767	766		to make payment to the member's retiree's estate, the residue shall be 3
768	767		forfeited to the trust assets of the system subject to any valid claim of the 4
769	768		member's retiree's estate under § 24-7-734. 5
770	769		6
771	770		SECTION 45. Arkansas Code § 24 -7-710(a)(2)(B), concerning when an 7
772	771		eligible survivor or a minor survivor's guardian or legal representative must 8
773	772		complete an application for survivor annuity benefits under the Arkansas 9
774	773		Teacher Retirement System, is amended to read as follows: 10
775	774		(B) If an immediately eligible survivor or the minor 11
776	775		survivor's guardian or legal representative fails to complete the application 12
777	776		process within six (6) calendar months after by the end of the sixth full 13
778	777		calendar month following the date on which the application required under 14
779	778		subdivision (a)(2)(A) of this section is filed, including the submission of 15
780	779		any additional documentation requi red by the system, the application shall be 16
781	780		void unless an extension is granted by the system Executive Director of the 17
782	781		Arkansas Teacher Retirement System . 18
783	782		19
784	783		SECTION 46. Arkansas Code § 24 -7-710(b)(1)(A)(i), concerning a 20
785	784		member's survivor annuity under th e Arkansas Teacher Retirement System and 21
786	785		when it is received by a member's surviving spouse who was married to the 22
787	786		member for at least the two (2) years immediately preceding the member's 23
788	787		death, is amended to read as follows: 24
789	788		(b)(1)(A)(i) Unless the member otherwise directs an alternative 25
790	789		beneficiary to receive the member's residue amount by using a beneficiary 26
791	790		form approved by the system, a member's surviving spouse, who was married to 27
792	791		the member for at least the two (2) years immediately preceding the member's 28
793	792		death, shall receive an annuity computed in the same manner in all respects 29
794	793		as if the member had retired on the date of the member's death and elected 30
795	794		Option A under § 24-7-706 to provide one hundred percent (100%) survivor 31
796	795		annuity benefits, including benefits applicable under § 24-7-713, for his or 32
797	796		her spouse. 33
798	797		34
799	798		SECTION 47. Arkansas Code § 24-7-710(b)(1)(B)(ii), concerning when an 35
800	799		immediately eligible spouse must complete an application process for a 36 As Engrossed: H2/7/23 HB1201
801	800
802	801		21 02-07-2023 09:19:08 LHR037
803	802
804	803
805	804		survivor annuity benefit under the Arkansas Teacher Retirement System, is 1
806	805		amended to read as follows: 2
807	806		(ii) If an immediately eligible spouse fails to 3
808	807		complete the application process within six (6) calendar months after by the 4
809	808		end of the sixth full calendar month following the date on which the 5
810	809		application required under subdivision (b)(1)(B)(i) of this section is filed, 6
811	810		including the submission of all additional documentation required by the 7
812	811		system, the application shall be void unless an extension is granted by the 8
813	812		system executive director. 9
814	813		10
815	814		SECTION 48. Arkansas Code § 24 -7-710(b)(1)(C)(ii), concerning when a 11
816	815		surviving spouse's application for surviving spouse benefits becomes void 12
817	816		under the Arkansas Teacher Retirement System, is amended to read as follows: 13
818	817		(ii) If a surviving spouse becomes eligible for 14
819	818		surviving spouse benefits and fails to complete the application proces s 15
820	819		within six (6) calendar months after by the end of the sixth full calendar 16
821	820		month following the date on which the application required under subdivision 17
822	821		(b)(1)(B)(i) of this section is filed, including the submission of any 18
823	822		additional documentation requir ed by the system, the application shall be 19
824	823		void unless an extension is granted by the system executive director. 20
825	824		21
826	825		SECTION 49. Arkansas Code § 24 -7-713(a)(1), concerning when certain 22
827	826		persons receiving benefits under the Arkansas Teacher Retirement System 23
828	827		receive a simple cost of living adjustment, is amended to read as follows: 24
829	828		(a)(1) July 1 of each year, retirants retirees, survivors, 25
830	829		participants in the Teacher Deferred Retirement Option Plan, and annuity 26
831	830		beneficiaries who have been receiving monthly benefits for the previous 27
832	831		twelve (12) months shall receive a simple cost of living adjustment. 28
833	832		29
834	833		SECTION 50. Arkansas Code § 24 -7-713(d), concerning the administration 30
835	834		of the Arkansas Teacher Retirement System benefit stipend by the Board of 31
836	835		Trustees of the Arkansas Teacher Retirement System, is amended to read as 32
837	836		follows: 33
838	837		(d)(1) The board may remove by board resolution the benefit stipend 34
839	838		from the base amount of current retirants retirees and option beneficiaries 35
840	839		if the board determines that the removal of the benefit stipend from the base 36 As Engrossed: H2/7/23 HB1201
841	840
842	841		22 02-07-2023 09:19:08 LHR037
843	842
844	843
845	844		amount is prudent in order to maintain actuarial soundness. 1
846	845		(2) The board may phase in the removal of the benefit stipend 2
847	846		from the base amount of current retirant retiree and option beneficiaries by 3
848	847		board resolution. 4
849	848		5
850	849		SECTION 51. Arkansas Code § 24 -7-714 is amended to read as follows: 6
851	850		24-7-714. Increase in monthly benefits — Acts 1979, No. 655, and Acts 7
852	851		1981, No. 885. 8
853	852		(a) The monthly retirement benefit payable to retirants retirees and 9
854	853		beneficiaries of the Arkansas Teacher Retirement System who were retired on 10
855	854		or before July 1, 1978, and who were receiving benefits on July 1, 1979, 11
856	855		shall be increased as follows: 12
857	856		(1) For all benefits to retirants retirees and beneficiaries of 13
858	857		the system whose total credited service is before July 1, 1961, a monthly 14
859	858		benefit increase equal to one dollar ($1.00) per each year of credited 15
860	859		service; 16
861	860		(2) For all benefits to retirants retirees and beneficiaries of 17
862	861		the system which are based in whole or in part upon credited service rendered 18
863	862		after July 1, 1961, a monthly benefit increase equal to seventy-five cents 19
864	863		(75¢) per each year of credited service; 20
865	864		(3) For benefit increases authorized by subdivisions (a)(1) and 21
866	865		(2) of this section, fractional years of service shall be disregarded, and 22
867	866		the increase shall be added to the monthly annuity after the annual 23
868	867		postretirement increase based on the consumer price index has been applied to 24
869	868		the retirant's retiree's base annuity; and 25
870	869		(4) In the event that there is more than one (1) beneficiary or 26
871	870		survivor of a member or retirant retiree receiving benefits, the increases in 27
872	871		subdivisions (a)(1) and (2) of this section shall be based upon the member's 28
873	872		total credited service. The benefit increase so determined shall be divided 29
874	873		between the survivors or beneficiaries in proportion to their base annuities. 30
875	874		(b) For retirements effective after July 1, 1978, for which a monthly 31
876	875		benefit is payable for the month of July 1981 or later, calculations shall be 32
877	876		made as provided in subdivisions (b)(1) and (2) of this section. If the 33
878	877		monthly benefit calculated using subdivision (b)(1) of this section is more 34
879	878		than the monthly benefit calculated using subdivision (b)(2) of this section, 35
880	879		then the difference shall be paid to the retirant retiree as a monthly 36 As Engrossed: H2/7/23 HB1201
881	880
882	881		23 02-07-2023 09:19:08 LHR037
883	882
884	883
885	884		benefit increase, subject to the provisions of subdivisions (b)(3)-(6) of 1
886	885		this section, as follows: 2
887	886		(1) Calculate the monthly annuity payable to the member under § 3
888	887		24-7-705, based on the provisions of § 24-7-705, his or her salary record, 4
889	888		and his or her service record, all as of July 1, 1978, and add seventy-five 5
890	889		cents (75¢) for each year of the member's credited service rendered before 6
891	890		July 1, 1978; 7
892	891		(2) Calculate the monthly annuity payable to the member under 8
893	892		the provisions of § 24-7-705 in effect at the time of the member's 9
894	893		retirement; 10
895	894		(3) For benefit increases authorized by this subsection, 11
896	895		fractional years of service shall be disregarded. The increase shall be added 12
897	896		to the monthly annuity after the annual postretirement increase based on the 13
898	897		consumer price index has been applied to the retirant's retiree's base 14
899	898		annuity; 15
900	899		(4) In the event that there is more than one (1) beneficiary or 16
901	900		survivor of a member or retirant retiree receiving benefits, the increases in 17
902	901		this subsection shall be based upon the member's total credited service, and 18
903	902		the benefit increase so determined shall be divided between the survivors or 19
904	903		beneficiaries in proportion to their base annuities; 20
905	904		(5) Any benefit increase created by this subsection shall be 21
906	905		effective at retirement but not for any month before July 1981; and 22
907	906		(6) If there is any change in § 24-7-705 after the member's 23
908	907		retirement, the amount under subdivision (b)(2) of this section shall be 24
909	908		recalculated using the changed provisions, and the benefit increase provided 25
910	909		by this subsection shall be changed correspondingly. 26
911	910		27
912	911		SECTION 52. Arkansas Code § 24 -7-727(a)(1), concerning when the Board 28
913	912		of Trustees of the Arkansas Teacher Retirement System may compound the cost 29
914	913		of living adjustment for retirants and participants in the Teacher Deferred 30
915	914		Retirement Option Plan, is amended to read as follows: 31
916	915		(a)(1) After July 1, 1999, the The Board of Trustees of the Arkansas 32
917	916		Teacher Retirement System may compound the cost of living adjustment for all 33
918	917		retirants retirees and participants in the Teacher Deferred Retirement Option 34
919	918		Plan who have received a monthly retirement benefit for the prior twelve-35
920	919		month period. 36 As Engrossed: H2/7/23 HB1201
921	920
922	921		24 02-07-2023 09:19:08 LHR037
923	922
924	923
925	924		1
926	925		SECTION 53. Arkansas Code § 24 -7-727(b)(3)(A), concerning when the 2
927	926		Board of Trustees of the Arkansas Teacher Retirement System may reverse a 3
928	927		compounding of the cost of living adjustment for retirants and participants 4
929	928		in the Teacher Deferred Retirement Option Plan, is amended to read as 5
930	929		follows: 6
931	930		(3)(A) The board may reverse a compounding of the cost of living 7
932	931		adjustment for all retirants retirees and participants in the Teacher 8
933	932		Deferred Retirement Option Plan who benefit from the compounding. 9
934	933		10
935	934		SECTION 54. Arkansas Code § 24 -7-728 is amended to read as follows: 11
936	935		24-7-728. Computation of benefits based on life annuity. 12
937	936		(a)(1) The Board of Trustees of the Arkansas Teacher Retirement System 13
938	937		is authorized by this section to raise the level of benefit to the current 14
939	938		retirants retirees and other beneficiaries of the Arkansas Teacher Retirement 15
940	939		System to a comparable level increase to match the increase in benefits that 16
941	940		would accrue to active members as a result of any increase in the calculation 17
942	941		of a life annuity as provided in § 24-7-705(a)(1) in accordance with any 18
943	942		rules the board might promulgate. 19
944	943		(2) The board may raise the level of benefit to a comparable 20
945	944		level increase that matches the increase in benefits that would accrue to 21
946	945		active members as a result of any increase in the ca lculation of a life 22
947	946		annuity as provided in § 24 -7-705(a)(1) in accordance with any rules the 23
948	947		board might promulgate. 24
949	948		(b)(1) The amount of any increase for retirants retirees and other 25
950	949		beneficiaries shall also be determined in accordance with the rules of the 26
951	950		board as is actuarially appropriate for the system. 27
952	951		(2) Prior to Before increasing a benefit as provided in this 28
953	952		section, the board shall file relevant information concerning the actuarial 29
954	953		appropriateness of the action with the Joint Committee on Public Retirement 30
955	954		and Social Security Programs, and the action shall be reviewed by the Joint 31
956	955		Committee on Public Retirement and Social Security Programs. 32
957	956		33
958	957		SECTION 55. Arkansas Code § 24 -7-730(a)(1), concerning the required 34
959	958		dates of distributions of membe r benefits under the Arkansas Teacher 35
960	959		Retirement System, is amended to read as follows: 36 As Engrossed: H2/7/23 HB1201
961	960
962	961		25 02-07-2023 09:19:08 LHR037
963	962
964	963
965	964		(a)(1)(A) Notwithstanding the provisions of this subchapter regarding 1
966	965		the required dates of distribution of benefits under the Arkansas Teacher 2
967	966		Retirement System to former members, the distribution of a former member's 3
968	967		benefits under the system shall in any event be made or begun by April 1 of 4
969	968		the calendar year following the later of the calendar year latter of the 5
970	969		calendar year in which the member attains age seventy-two (72) or the 6
971	970		calendar year in which the member retires or the calendar year in which the 7
972	971		member attains the applicable age. 8
973	972		(B) The applicable age for a member is as follows: 9
974	973		(i) In the case of a member who attains seventy-two 10
975	974		(72) years of age after December 31, 2022, and seventy-three (73) years of 11
976	975		age before January 1, 2030, the applicable age is seventy-three (73) years of 12
977	976		age; 13
978	977		(ii) In the case of a member who attains seventy-14
979	978		three (73) years of age after December 31, 2029, and seventy-four (74) years 15
980	979		of age before January 1, 2033, the applicable age is seventy-four (74) years 16
981	980		of age; and 17
982	981		(iii) In the case of a member who attains seventy-18
983	982		four (74) years of age after December 31, 2032, the applicable age is 19
984	983		seventy-five (75) years of age. 20
985	984		21
986	985		SECTION 56. Arkansas Code § 24 -7-733(a)(2), concerning the requirement 22
987	986		that annual benefits under the Arkansas Teacher Retirement System shall not 23
988	987		violate limitations under the Internal Revenue Code, 26 U.S.C. 415(b), is 24
989	988		amended to read as follows: 25
990	989		(2) The annual benefits, as may be increased in subsequent 26
991	990		years, that are paid to retirants retirees by the system shall not violate 27
992	991		the limitations under the Internal Revenue Code, 26 U.S.C. 415(b), applicable 28
993	992		to the annuity effective date under the Internal Revenue Code, 26 U.S.C. 29
994	993		415(d), and benefits shall be paid in a manner that protects the tax-30
995	994		qualified status of the system. 31
996	995		32
997	996		SECTION 57. Arkansas Code § 24 -7-735(c), concerning a member or 33
998	997		employer's ability to purchase service credit, additional salary, or both for 34
999	998		a member under the Arkansas Teacher Retirement System, is amended to add a n 35
1000	999		additional subdivision to read as follows: 36 As Engrossed: H2/7/23 HB1201
1001	1000
1002	1001		26 02-07-2023 09:19:08 LHR037
1003	1002
1004	1003
1005	1004		(4)(A) Service credit purchased under a settlement agreement or 1
1006	1005		court order shall offset service credit that is earned by the member as an 2
1007	1006		employee of another covered employer during the same period of time c overed 3
1008	1007		by the service credit purchased under the settlement agreement or court 4
1009	1008		order. 5
1010	1009		(B) Service credit purchased under a settlement agreement 6
1011	1010		or court order shall not be applied by the system in a manner that allows the 7
1012	1011		member to earn more than one (1) year of service credit in a fiscal year. 8
1013	1012		9
1014	1013		SECTION 58. Arkansas Code § 24 -7-738(b)(2), concerning the recovery of 10
1015	1014		an erroneously paid disability retirement benefit for a month in which a 11
1016	1015		member receives salary from a covered employer under the Arkansas Teacher 12
1017	1016		Retirement System, is amended to read as follows: 13
1018	1017		(2) Any disability retirement benefit erroneously paid to the 14
1019	1018		member or retirant retiree for a month in which the member receives salary 15
1020	1019		from a covered employer may be recovered by the system as an overpayment as 16
1021	1020		allowed by law. 17
1022	1021		18
1023	1022		SECTION 59. Arkansas Code § 24 -7-1302(c), concerning when a member may 19
1024	1023		withdraw his or her application for the Teacher Deferred Retirement Option 20
1025	1024		Plan under the Arkansas Teacher Retirement System, is amended to read as 21
1026	1025		follows: 22
1027	1026		(c) The member may withdraw his or her plan application if notice to 23
1028	1027		withdraw is received by the system no later than two (2) calendar months 24
1029	1028		after by the end of the second full calendar month immediately following the 25
1030	1029		member's plan date. 26
1031	1030		27
1032	1031		SECTION 60. Arkansas Code Title 24, Chapter 7, Subchapter 15 is 28
1033	1032		amended to read as follows: 29
1034	1033		Subchapter 15 — Retirants’ Retirees’ Ad Hoc Increase Act 30
1035	1034		31
1036	1035		24-7-1501. Title. 32
1037	1036		This subchapter shall be known and may be cited as the “ Retirants’ 33
1038	1037		Retirees’ Ad Hoc Increase Act”. 34
1039	1038		35
1040	1039		24-7-1502. Benefit generally. 36 As Engrossed: H2/7/23 HB1201
1041	1040
1042	1041		27 02-07-2023 09:19:08 LHR037
1043	1042
1044	1043
1045	1044		(a)(1) The annual benefit payable to eligible retirees, survivors, and 1
1046	1045		beneficiaries of retirants retirees of the Arkansas Teacher Retirement System 2
1047	1046		shall be subject to a one-time ad hoc increase based on the retirant's 3
1048	1047		retiree's years of credited service that is grouped within descending decades 4
1049	1048		as calculated by subtracting the total years of credited service from the 5
1050	1049		date of retirement. 6
1051	1050		(2) A break in credited service is not considered under this 7
1052	1051		subchapter. 8
1053	1052		(3) Teacher Deferred Retirement Option Plan participants shall 9
1054	1053		have the total years of credited service subtracted from the date of entry 10
1055	1054		into the plan. 11
1056	1055		(b)(1) One-half (½) of the annual dollar increase per year of credited 12
1057	1056		service shall be calculated and provided to all retirees, survivors, and 13
1058	1057		beneficiaries of retirants retirees that are eligible to receive this 14
1059	1058		increase. 15
1060	1059		(2) One-half (½) of the annual dollar increase per year of 16
1061	1060		credited service shall be calculated then prorated based on the amount of 17
1062	1061		contributory service credit to total service on the retirant's retiree's: 18
1063	1062		(A) Retirement date; or 19
1064	1063		(B) Plan entry date. 20
1065	1064		(3) The amounts under this subsection shall be calculated and 21
1066	1065		provided to all retirees, survivors, and beneficiaries of retirants retirees. 22
1067	1066		(c) The ad hoc benefit is payable to the retirees, survivors, and 23
1068	1067		beneficiaries of retirants retirees of the system beginning on a July 1 that 24
1069	1068		is at least twelve (12) full months after the effective date of a monthly 25
1070	1069		benefit. 26
1071	1070		(d) The ad hoc benefit for a retirant retiree, survivor, and 27
1072	1071		beneficiary of a retirant retiree shall not increase the retirant's retiree's 28
1073	1072		current benefit by more than twenty-five percent (25%) of the annuity benefit 29
1074	1073		payable as of the prior June 30. 30
1075	1074		31
1076	1075		24-7-1503. Ad hoc benefit formula. 32
1077	1076		The schedule of decade dollar amounts per year of credited service is: 33
1078	1077		34
1079	1078		Formula Decades in Which Credited Annual $ Increase Per Year of 35
1080	1079		Service Was Accrued Service Credited Service 36 As Engrossed: H2/7/23 HB1201
1081	1080
1082	1081		28 02-07-2023 09:19:08 LHR037
1083	1082
1084	1083
1085	1084		1
1086	1085		2000 – and later $5 2
1087	1086		1990–1999 $10 3
1088	1087		1980–1989 $20 4
1089	1088		1970–1979 $30 5
1090	1089		1960–1969 $40 6
1091	1090		1950–1959 $50 7
1092	1091		1940–1949 $60 8
1093	1092		1930–1939 $70 9
1094	1093		1920–1929 $80 10
1095	1094		1910–1919 $90 11
1096	1095		12
1097	1096		24-7-1504. Promulgation of rules — Duty of board. 13
1098	1097		(a) The Board of Trustees of the Arkansas Teacher Retirement System 14
1099	1098		shall promulgate rules for the ad hoc benefit under this subchapter. 15
1100	1099		(b) An ad hoc benefit under this subchapter shall not be implemented 16
1101	1100		if the ad hoc benefit would cause the Arkansas Teacher Retirement System's 17
1102	1101		unfunded actuarial accrued liabilities to exceed an eighteen-year 18
1103	1102		amortization. 19
1104	1103		(c) The board shall only authorize an ad hoc benefit that is 20
1105	1104		actuarially appropriate for the system. 21
1106	1105		(d) Before an increase of retirement benefit through an ad hoc benefit 22
1107	1106		is authorized, the board shall file relevant information with the Joint 23
1108	1107		Interim Committee on Public Retirement and Social Security Programs regarding 24
1109	1108		the actuarial appropriateness of the increase. 25
1110	1109		(e) The board may reduce the decade increase formula under § 24-7-1503 26
1111	1110		proportionately on a one-to-one formula basis for each decade when the 27
1112	1111		reduction is actuarially feasible to implement. 28
1113	1112		(f) The ad hoc benefit increase is a one-time adjustment and shall 29
1114	1113		also be used to increase the base amount of a retirant's retiree's benefits 30
1115	1114		when calculating any future additional benefit increases. 31
1116	1115		32
1117	1116		SECTION 61. EMERGENCY CLAUSE. It is found and determined by the 33
1118	1117		General Assembly of the State of Arkansas that the operations of a state 34
1119	1118		public retirement system are complex; that the Arkansas Teacher Retirement 35
1120	1119		System must be able to meet the needs of its members as anticipated by the 36 As Engrossed: H2/7/23 HB1201
1121	1120
1122	1121		29 02-07-2023 09:19:08 LHR037
1123	1122
1124	1123
1125	1124		General Assembly; that certain provisions of the Arkansas Teacher Retirement 1
1126	1125		System Act need revision and updating to bring them into conformance with 2
1127	1126		sound public pension policy and actuarial requirements; that the revisions 3
1128	1127		and updates are of great importance to members of the Arkansas Teacher 4
1129	1128		Retirement System and to other citizens of the State of Arkansas; that as the 5
1130	1129		Arkansas Teacher Retirement System operates on a fiscal year of July 1 to 6
1131	1130		June 30, a July 1, 2023, effective date is necessary in order to allow the 7
1132	1131		provisions within this act to begin on the first day of the fiscal year and 8
1133	1132		to allow for a structured and proper administration of the procedures 9
1134	1133		referenced in this act; that the updates and revisions to the Arkansas 10
1135	1134		Teacher Retirement System Act are of great importance for actuarial purposes 11
1136	1135		and for the improvement and protection of member benefits under the Arkansas 12
1137	1136		Teacher Retirement System; and that this act is necessary in order to 13
1138	1137		maintain an orderly system of benefits for the members of the Arkansas 14
1139	1138		Teacher Retirement System. Therefore, an emergency is declared to exist, and 15
1140	1139		this act being necessary for the preservation of the public peace, health, 16
1141	1140		and safety shall become effective on July 1, 2023. 17
1142	1141		18
1143	1142		/s/Warren 19
1144	1143		20
1145	1144		21
1146		-	~~APPROVED: 2/21/23~~ 22
	1145	+	22
1147	1146		23
1148	1147		24
1149	1148		25
1150	1149		26
1151	1150		27
1152	1151		28
1153	1152		29
1154	1153		30
1155	1154		31
1156	1155		32
1157	1156		33
1158	1157		34
1159	1158		35
1160	1159		36