Stricken language would be deleted from and underlined language would be added to present law.
Act 227 of the Regular Session
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State of Arkansas 1
A Bill 2
Regular Session, 2025 HOUSE BILL 1160 3
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By: Representative K. Moore 5
By: Senator J. Dotson 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING PERMISSIVE SERVICE 9
CREDIT FOR GAP YEAR SERVICE UNDER THE ARKANSAS 10
TEACHER RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY; 11
AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO AMEND THE LAW CONCERNING PERMISSIVE 16
SERVICE CREDIT FOR GAP YEAR SERVICE 17
UNDER THE ARKANSAS TEACHER RETIREMENT 18
SYSTEM; AND TO DECLARE AN EMERGENCY. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code § 24 -7-202(23), concerning the definition of 23
“gap year” as applicable to the Arkansas Teacher Retirement System, is 24
amended to read as follows: 25
(23) “Gap year” "Gap period" means a period of time one-quarter 26
(1/4) of a fiscal year : 27
(A) In which a member: 28
(i) Was an inactive member; and 29
(ii) Either: 30
(a) Was unemployed; or 31
(b) Did not provide qualified service; and 32
(B) For which the system may grant the member permissive 33
service credit; 34
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SECTION 2. Arkansas Code § 24 -7-613 is amended to read as follows: 36 HB1160
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24-7-613. Permissive service credit — Gap year period service. 1
(a) A member of the Arkansas Teacher Retirement System may purchase 2
permissive service credit for one (1) or more gap years periods if the 3
member: 4
(1) The member: 5
(A) Has five (5) years of actual service in the system; 6
(B)(2) Has left his or her position as a classroom teacher 7
immediately before each nonconsecutive gap year gap period or the initial gap 8
year gap period of consecutive gap years gap periods; 9
(C)(3) Returns to his or her position as a classroom teacher 10
after one (1) or more gap years gap periods; 11
(D)(4) Accrues at least one -half (½) year of service credit 12
after returning to his or her position as a classroom teacher; 13
(E)(5) Was inactive during the gap year gap period or gap years 14
gap periods; and 15
(F)(6) Is ineligible to receive free service credit for each gap 16
year gap period under another provision of the law applicable to the system ; 17
and 18
(2) Each gap year amounts to an entire fiscal year . 19
(b)(1) A member may purchase one (1) one-quarter (1/4) year of 20
permissive service credit for each one (1) gap year gap period. 21
(2) A member shall not purchase more than five (5) years of 22
permissive service credit. 23
(c) Permissive service credit for one (1) or more gap years periods 24
shall not be purchasable after a member retires from the system. 25
(d) Permissive service credit shall be credited in accordance with § 26
24-7-601. 27
(e)(1) The member shall pay the actuarial equivalent of the member's 28
benefits to the system for each one-quarter (1/4) year of permissive service 29
credit purchased. 30
(2) A year Each one-quarter (1/4) year of permissive service 31
credit that is being purchased by a member shall not become credited service 32
under the system until the actuarial equivalent of the member's benefits is 33
paid in full. 34
(f) At the member's request, a member's payment for permissive service 35
credit under this section shall be refunded if the: 36 HB1160
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(1) Member ceases to be an active member before the permissive 1
service credit is established as credited service in the system; or 2
(2) Permissive service credit is not otherwise used to establish 3
the member's eligibility for retirement under the system. 4
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SECTION 3. EMERGENCY CLAUSE. It is found and determined by the 6
General Assembly of the State of Arkansas that the operations of a state 7
public retirement system are complex; that the Arkansas Teacher Retirement 8
System must be able to meet the needs of its members as anticipated by the 9
General Assembly; that certain provisions of the Arkansas Teacher Retirement 10
System Act, § 24-7-201 et seq., need immediate revision and updating to 11
address administrative complexities caused by these provisions and to bring 12
these provisions into conformance with sound public pension policy and 13
actuarial requirements; that the revisions and updates are of great 14
importance to members and covered employers of the Arkansas Teacher 15
Retirement System and to other citizens of the State of Arkansas; that as the 16
Arkansas Teacher Retirement System operates on a fiscal year of July 1 to 17
June 30, a July 1, 2025, effective date is necessary in order to allow the 18
provisions within this act to begin on the first day of the fiscal year and 19
to allow for a structured and proper administration of the procedures 20
referenced in this act; that the updates and revisions to the Arkansas 21
Teacher Retirement System Act are of great importance and necessary for 22
protecting member benefits and clarifying the reporting and contribution 23
requirements of employers participating in the Arkansas Teacher Retirement 24
System; and that this act is necessary in order to maintain an orderly system 25
of benefits for the members of the Arkansas Teacher Retirement System. 26
Therefore, an emergency is declared to exist, and this act being necessary 27
for the preservation of the public peace, health, and safety, shall become 28
effective on July 1, 2025. 29
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APPROVED: 2/27/25 32
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