Arkansas 2025 Regular Session

Arkansas House Bill HB1154 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 222 of the Regular Session
3	2		LJH007 01/16/2025 9:22:41 AM LJH007
4	3		State of Arkansas 1
5	4		A Bill 2
6	5		Regular Session, 2025 HOUSE BILL 1154 3
7	6		4
8	7		By: Representative Warren 5
9	8		By: Senator K. Hammer 6
10	9		7
11	10		For An Act To Be Entitled 8
12	11		AN ACT TO ENACT THE ARKANSAS TEACHER RETIREMENT 9
13	12		SYSTEM'S GENERAL OMNIBUS; TO AMEND THE LAW CONCERNING 10
14	13		RECOGNITION OF FEDERAL RETIREMENT PROGRAMS, 11
15	14		CONTRIBUTORY AND NONCONTRIBUTORY MEMBERSHIP STATUS, 12
16	15		TEMPORARY WAIVERS FOR ELECTRONICALLY REPORTING AND 13
17	16		PAYING CONTRIBUTIONS TO THE ARKANSAS TEACHER 14
18	17		RETIREMENT SYSTEM, OPTION A AND OPTION B ANNUITY 15
19	18		ELECTIONS AND DISTRIBUTIONS UNDER THE ARKANSAS 16
20	19		TEACHER RETIREMENT SYSTEM, THE EFFECTIVE DATE OF 17
21	20		SURVIVOR BENEFITS UNDER THE ARKANSAS TEACHER 18
22	21		RETIREMENT SYSTEM, RESIDUE DISPOSITIONS UNDER THE 19
23	22		ARKANSAS TEACHER RETIREMENT SYSTEM, ELIGIBILITY TO 20
24	23		PARTICIPATE IN A PSHE PLAN, AND OTHER VARIOUS 21
25	24		PROVISIONS APPLICABLE TO THE ARKANSAS TEACHER 22
26	25		RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY; AND FOR 23
27	26		OTHER PURPOSES. 24
28	27		25
29	28		26
30	29		Subtitle 27
31	30		TO ENACT THE ARKANSAS TEACHER RETIREMENT 28
32	31		SYSTEM'S GENERAL OMNIBUS; AND TO DECLARE 29
33	32		AN EMERGENCY. 30
34	33		31
35	34		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 32
36	35		33
37	36		SECTION 1. Arkansas Code § 24 -1-107(b)(1)(B)(i), concerning the 34
38	37		recognition of federal retirement programs, is amended to read as follows: 35
39	38		(B)(i) A member of the Arkansas Teacher Retirement System 36 HB1154
40	39
41	40		2 01/16/2025 9:22:41 AM LJH007
42	41		shall receive credit for the member's federal service upon the payment of the 1
43	42		cost of service under § 24 -7-502(b) and as actuarial equivalent of the 2
44	43		member's benefits to the Arkansas Teacher Retirement System and the 3
45	44		fulfillment of all other requirements as may be prescribed by the Board of 4
46	45		Trustees of the Arkansas Teacher Retirement System. 5
47	46		6
48	47		SECTION 2. Arkansas Code § 24 -7-406(e)(1)(C)(iii), concerning 7
49	48		contributory and noncontributory status under the Arkansas Teacher Retirement 8
50	49		System, is amended to read as follows: 9
51	50		(iii) Effective July 1, 2021, From July 1, 2021, to 10
52	51		June 30, 2025, regardless of an earlier election to be a noncontributory 11
53	52		member of the system, an active member whose status later changes from 12
54	53		nonteacher status to administrator or teacher status under a contract for one 13
55	54		hundred eighty-five (185) days or more shall become a contributory member of 14
56	55		the system otherwise provided for in this section. 15
57	56		16
58	57		SECTION 3. Arkansas Code § 24 -7-411(f), concerning temporary waivers 17
59	58		for electronically reporting and paying contributions to the Arkansas Teacher 18
60	59		Retirement System, is repealed. 19
61	60		(f)(1) An employer shall submit a written request for a temporary 20
62	61		waiver to the board by July 1, 2022, when the employer is unable to: 21
63	62		(A) Report contributions electronically through the 22
64	63		system; or 23
65	64		(B) Pay contributions to the system by electronic 24
66	65		transfer. 25
67	66		(2) A request for a temporary waiver submitted under subdivision 26
68	67		(f)(1) of this section shall include a timeline for when the employer will be 27
69	68		able to comply with the payment and reporting requirements under this 28
70	69		section. 29
71	70		30
72	71		SECTION 4. Arkansas Code § 24 -7-706(a)(4)(B)(iii), concerning the 31
73	72		distribution of an Option B annuity under the Arkansas Teacher Retirement 32
74	73		System, is amended to read as follows: 33
75	74		(iii) Upon the death of a retiree, if more than one 34
76	75		(1) dependent child is designated as the retiree's Option B beneficiary and a 35
77	76		spouse is not designated as the retiree's Option B beneficiary, the retiree's 36 HB1154
78	77
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80	79		reduced annuity one-half (1/2) of the retiree's reduced annuity shall be paid 1
81	80		in equal shares to each dependent child designated as the retiree's Option B 2
82	81		beneficiary. 3
83	82		4
84	83		SECTION 5. Arkansas Code § 24 -7-706(d)(3), concerning a residue 5
85	84		beneficiary's eligibility to elect an Option A annuity under the Arkansas 6
86	85		Teacher Retirement System, is amended to read as follows: 7
87	86		(3) The election form must be received by the system within one 8
88	87		hundred twenty (120) days of the death of the retiree by the end of the 9
89	88		fourth full calendar month following the retiree's death . 10
90	89		11
91	90		SECTION 6. Arkansas Code § 24 -7-706(g), concerning the effective date 12
92	91		of survivor benefits under the Arkansas Teacher Retirement System, is 13
93	92		repealed. 14
94	93		(g) A retiree's effective retirement date and the date when survivor 15
95	94		benefits under this section are payable shall be determined by the law in 16
96	95		effect at the time of the retiree's death. 17
97	96		18
98	97		SECTION 7. Arkansas Code § 24 -7-709(a)(4), concerning the disposition 19
99	98		of retiree residue under the Arkansas Teacher Retirement System, is repealed. 20
100	99		(4) If all designated beneficiaries predecease the retiree, the 21
101	100		residue shall be paid to the estate of the most recently deceased designated 22
102	101		beneficiary. 23
103	102		24
104	103		SECTION 8. Arkansas Code § 24 -7-710(b)(1)(B)(i)(a), concerning the 25
105	104		effective benefit date of a surviving spouse annuity under the Arkansas 26
106	105		Teacher Retirement System, is amended to read as follows: 27
107	106		(a) Accumulated twenty -five (25) years or more 28
108	107		of credited service and qualified as eligible to receive a retirement annuity 29
109	108		under §§ 24-7-701 and 24-7-702 § 24-7-701 or § 24-7-702; or 30
110	109		31
111	110		SECTION 9. Arkansas Code § 24 -7-1605(a)(2), concerning the eligibility 32
112	111		of a new employee of a PSHE employer to participate in a PSHE plan, is 33
113	112		amended to read as follows: 34
114	113		(2) A new employee of a PSHE employer may participate in the 35
115	114		PSHE plan if the employee: 36 HB1154
116	115
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118	117		(A) Is benefits-eligible as determined by the PSHE 1
119	118		employer; 2
120	119		(B) Is a vested member of the Arkansas Teacher Retirement 3
121	120		System at the time of initial employment; Is either: 4
122	121		(i) A vested member of the Arkansas Teacher 5
123	122		Retirement System at the time of initial employment; or 6
124	123		(ii) A non-vested member of the system who meets the 7
125	124		requirements of a less restrictive PSHE plan adopted by the specific PSHE 8
126	125		employer. 9
127	126		(C) Is not a vested member of the system but meets the 10
128	127		requirements of a less restrictive PSHE plan adopted by the specific PSHE 11
129	128		employer; and 12
130	129		(D)(C) Signs an irrevocable PSHE plan participation form 13
131	130		provided by the system. 14
132	131		15
133	132		SECTION 10. EMERGENCY CLAUSE. It is found and determined by the 16
134	133		General Assembly of the State of Arkansas that the operations of a state 17
135	134		public retirement system are complex; that the Arkansas Teacher Retirement 18
136	135		System must be able to meet the needs of its members as anticipated by the 19
137	136		General Assembly; that certain provisions of the Arkansas Teacher Retirement 20
138	137		System Act, § 24-7-201 et seq., need immediate revision and updating to bring 21
139	138		them into conformance with sound public pension policy and actuarial 22
140	139		requirements; that the revisions and updates are of great importance to 23
141	140		members of the Arkansas Teacher Retirement System and to other citizens of 24
142	141		the State of Arkansas; that as the Arkansas Teacher Retirement System 25
143	142		operates on a fiscal year of July 1 to June 30, an effective date of July 1, 26
144	143		2025, is necessary in order to allow the provisions within this act to begin 27
145	144		on the first day of the fiscal year and to allow for a structured and proper 28
146	145		administration of the procedures referenced in this act; that the updates and 29
147	146		revisions to the Arkansas Teacher Retirement System Act are of great 30
148	147		importance for actuarial purposes and for the improvement and protection of 31
149	148		member benefits under the Arkansas Teacher Retirement System; and that this 32
150	149		act is necessary in order to maintain an orderly system of benefits for the 33
151	150		members of the Arkansas Teacher Retirement System. Therefore, an emergency 34
152	151		is declared to exist, and this act being immediately necessary for the 35
153	152		preservation of the public peace, health, and safety shall become effective 36 HB1154
154	153
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