Stricken language would be deleted from and underlined language would be added to present law.
*LJH007* 01/16/2025 9:22:41 AM LJH007
State of Arkansas 1
A Bill 2
Regular Session, 2025 HOUSE BILL 1154 3
4
By: Representative Warren 5
By: Senator K. Hammer 6
7
For An Act To Be Entitled 8
AN ACT TO ENACT THE ARKANSAS TEACHER RETIREMENT 9
SYSTEM'S GENERAL OMNIBUS; TO AMEND THE LAW CONCERNING 10
RECOGNITION OF FEDERAL RETIREMENT PROGRAMS, 11
CONTRIBUTORY AND NONCONTRIBUTORY MEMBERSHIP STATUS, 12
TEMPORARY WAIVERS FOR ELECTRONICALLY REPORTING AND 13
PAYING CONTRIBUTIONS TO THE ARKANSAS TEACHER 14
RETIREMENT SYSTEM, OPTION A AND OPTION B ANNUITY 15
ELECTIONS AND DISTRIBUTIONS UNDER THE ARKANSAS 16
TEACHER RETIREMENT SYSTEM, THE EFFECTIVE DATE OF 17
SURVIVOR BENEFITS UNDER THE ARKANSAS TEACHER 18
RETIREMENT SYSTEM, RESIDUE DISPOSITIONS UNDER THE 19
ARKANSAS TEACHER RETIREMENT SYSTEM, ELIGIBILITY TO 20
PARTICIPATE IN A PSHE PLAN, AND OTHER VARIOUS 21
PROVISIONS APPLICABLE TO THE ARKANSAS TEACHER 22
RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY; AND FOR 23
OTHER PURPOSES. 24
25
26
Subtitle 27
TO ENACT THE ARKANSAS TEACHER RETIREMENT 28
SYSTEM'S GENERAL OMNIBUS; AND TO DECLARE 29
AN EMERGENCY. 30
31
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 32
33
SECTION 1. Arkansas Code § 24 -1-107(b)(1)(B)(i), concerning the 34
recognition of federal retirement programs, is amended to read as follows: 35
(B)(i) A member of the Arkansas Teacher Retirement System 36 HB1154
2 01/16/2025 9:22:41 AM LJH007
shall receive credit for the member's federal service upon the payment of the 1
cost of service under § 24 -7-502(b) and as actuarial equivalent of the 2
member's benefits to the Arkansas Teacher Retirement System and the 3
fulfillment of all other requirements as may be prescribed by the Board of 4
Trustees of the Arkansas Teacher Retirement System. 5
6
SECTION 2. Arkansas Code § 24 -7-406(e)(1)(C)(iii), concerning 7
contributory and noncontributory status under the Arkansas Teacher Retirement 8
System, is amended to read as follows: 9
(iii) Effective July 1, 2021, From July 1, 2021, to 10
June 30, 2025, regardless of an earlier election to be a noncontributory 11
member of the system, an active member whose status later changes from 12
nonteacher status to administrator or teacher status under a contract for one 13
hundred eighty-five (185) days or more shall become a contributory member of 14
the system otherwise provided for in this section. 15
16
SECTION 3. Arkansas Code § 24 -7-411(f), concerning temporary waivers 17
for electronically reporting and paying contributions to the Arkansas Teacher 18
Retirement System, is repealed. 19
(f)(1) An employer shall submit a written request for a temporary 20
waiver to the board by July 1, 2022, when the employer is unable to: 21
(A) Report contributions electronically through the 22
system; or 23
(B) Pay contributions to the system by electronic 24
transfer. 25
(2) A request for a temporary waiver submitted under subdivision 26
(f)(1) of this section shall include a timeline for when the employer will be 27
able to comply with the payment and reporting requirements under this 28
section. 29
30
SECTION 4. Arkansas Code § 24 -7-706(a)(4)(B)(iii), concerning the 31
distribution of an Option B annuity under the Arkansas Teacher Retirement 32
System, is amended to read as follows: 33
(iii) Upon the death of a retiree, if more than one 34
(1) dependent child is designated as the retiree's Option B beneficiary and a 35
spouse is not designated as the retiree's Option B beneficiary, the retiree's 36 HB1154
3 01/16/2025 9:22:41 AM LJH007
reduced annuity one-half (1/2) of the retiree's reduced annuity shall be paid 1
in equal shares to each dependent child designated as the retiree's Option B 2
beneficiary. 3
4
SECTION 5. Arkansas Code § 24 -7-706(d)(3), concerning a residue 5
beneficiary's eligibility to elect an Option A annuity under the Arkansas 6
Teacher Retirement System, is amended to read as follows: 7
(3) The election form must be received by the system within one 8
hundred twenty (120) days of the death of the retiree by the end of the 9
fourth full calendar month following the retiree's death . 10
11
SECTION 6. Arkansas Code § 24 -7-706(g), concerning the effective date 12
of survivor benefits under the Arkansas Teacher Retirement System, is 13
repealed. 14
(g) A retiree's effective retirement date and the date when survivor 15
benefits under this section are payable shall be determined by the law in 16
effect at the time of the retiree's death. 17
18
SECTION 7. Arkansas Code § 24 -7-709(a)(4), concerning the disposition 19
of retiree residue under the Arkansas Teacher Retirement System, is repealed. 20
(4) If all designated beneficiaries predecease the retiree, the 21
residue shall be paid to the estate of the most recently deceased designated 22
beneficiary. 23
24
SECTION 8. Arkansas Code § 24 -7-710(b)(1)(B)(i)(a), concerning the 25
effective benefit date of a surviving spouse annuity under the Arkansas 26
Teacher Retirement System, is amended to read as follows: 27
(a) Accumulated twenty -five (25) years or more 28
of credited service and qualified as eligible to receive a retirement annuity 29
under §§ 24-7-701 and 24-7-702 § 24-7-701 or § 24-7-702; or 30
31
SECTION 9. Arkansas Code § 24 -7-1605(a)(2), concerning the eligibility 32
of a new employee of a PSHE employer to participate in a PSHE plan, is 33
amended to read as follows: 34
(2) A new employee of a PSHE employer may participate in the 35
PSHE plan if the employee: 36 HB1154
4 01/16/2025 9:22:41 AM LJH007
(A) Is benefits-eligible as determined by the PSHE 1
employer; 2
(B) Is a vested member of the Arkansas Teacher Retirement 3
System at the time of initial employment; Is either: 4
(i) A vested member of the Arkansas Teacher 5
Retirement System at the time of initial employment; or 6
(ii) A non-vested member of the system who meets the 7
requirements of a less restrictive PSHE plan adopted by the specific PSHE 8
employer. 9
(C) Is not a vested member of the system but meets the 10
requirements of a less restrictive PSHE plan adopted by the specific PSHE 11
employer; and 12
(D)(C) Signs an irrevocable PSHE plan participation form 13
provided by the system. 14
15
SECTION 10. EMERGENCY CLAUSE. It is found and determined by the 16
General Assembly of the State of Arkansas that the operations of a state 17
public retirement system are complex; that the Arkansas Teacher Retirement 18
System must be able to meet the needs of its members as anticipated by the 19
General Assembly; that certain provisions of the Arkansas Teacher Retirement 20
System Act, § 24-7-201 et seq., need immediate revision and updating to bring 21
them into conformance with sound public pension policy and actuarial 22
requirements; that the revisions and updates are of great importance to 23
members of the Arkansas Teacher Retirement System and to other citizens of 24
the State of Arkansas; that as the Arkansas Teacher Retirement System 25
operates on a fiscal year of July 1 to June 30, an effective date of July 1, 26
2025, is necessary in order to allow the provisions within this act to begin 27
on the first day of the fiscal year and to allow for a structured and proper 28
administration of the procedures referenced in this act; that the updates and 29
revisions to the Arkansas Teacher Retirement System Act are of great 30
importance for actuarial purposes and for the improvement and protection of 31
member benefits under the Arkansas Teacher Retirement System; and that this 32
act is necessary in order to maintain an orderly system of benefits for the 33
members of the Arkansas Teacher Retirement System. Therefore, an emergency 34
is declared to exist, and this act being immediately necessary for the 35
preservation of the public peace, health, and safety shall become effective 36 HB1154
5 01/16/2025 9:22:41 AM LJH007
on July 1, 2025. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36