Stricken language would be deleted from and underlined language would be added to present law.
Act 228 of the Regular Session
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State of Arkansas 1
A Bill 2
Regular Session, 2025 HOUSE BILL 1161 3
4
By: Representative K. Moore 5
By: Senator J. Boyd 6
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For An Act To Be Entitled 8
AN ACT TO CLARIFY THE LAW CONCERNING AN ELECTION TO 9
CHANGE ANNUITY OPTIONS WITHIN ONE YEAR OF RETIREMENT 10
UNDER THE ARKANSAS TEACHER RETIREMENT SYSTEM; TO 11
DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO CLARIFY THE LAW CONCERNING AN 16
ELECTION TO CHANGE ANNUITY OPTIONS 17
WITHIN ONE YEAR OF RETIREMENT UNDER THE 18
ARKANSAS TEACHER RETIREMENT SYSTEM; AND 19
TO DECLARE AN EMERGENCY. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. Arkansas Code § 24 -7-706(e), concerning an election to 24
change annuity options within one (1) year of retirement under the Arkansas 25
Teacher Retirement System, is amended to read as follows: 26
(e)(1) Notwithstanding anything in this section to the contrary, a 27
retiree who retired on or after July 1, 1994, may elect to cancel his or her 28
election made at retirement for receiving an annuity and elect another 29
option, provided that he or she does the following within one (1) year of 30
retirement: 31
(A) Does so within one (1) year after July 1, 1995, or 32
within one (1) year of retirement; 33
(B) Files with the system a new election form approved by 34
the system; and 35
(C)(i)(B)(i) Repays to the system the difference between 36 HB1161
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the amount of the annuity received when he or she retired and the new annuity 1
due as a result of the election change, plus interest from July 1, 1994, or 2
his or her retirement date , whichever is later, to the date of payment in 3
full. 4
(ii) The difference shall be calculated retroactively 5
to July 1, 1994, or his or her the retiree's retirement date, whichever is 6
later. 7
(2) The election to change shall be made only one (1) time. 8
(3) The election change shall be effective retroactively to the 9
effective date of his or her annuity the month following the retiree's 10
fulfillment of the requirements specified under subdivision (e)(1) of this 11
section. 12
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SECTION 2. EMERGENCY CLAUSE. It is found and determined by the 14
General Assembly of the State of Arkansas that the operations of a state 15
public retirement system are complex; that the Arkansas Teacher Retirement 16
System must be able to meet the needs of its members as anticipated by the 17
General Assembly; that certain provisions of the Arkansas Teacher Retirement 18
System Act, § 24-7-201 et seq., need immediate revision and updating to 19
address administrative complexities caused by these provisions and to bring 20
these provisions into conformance with sound public pension policy and 21
actuarial requirements; that the revisions and updates are of great 22
importance to members of the Arkansas Teacher Retirement System and to other 23
citizens of the State of Arkansas; that as the Arkansas Teacher Retirement 24
System operates on a fiscal year of July 1 to June 30, an effective date of 25
July 1, 2025, is necessary in order to allow the provisions within this act 26
to begin on the first day of the fiscal year and to allow for a structured 27
and proper administration of the procedures referenced in this act; that the 28
updates and revisions to the Arkansas Teacher Retirement System Act are of 29
great importance and necessary for protecting member benefits and clarifying 30
the reporting and contribution requirements of employers participating in the 31
Arkansas Teacher Retirement System; and that this act is necessary in order 32
to maintain an orderly system of benefits for the members of the Arkansas 33
Teacher Retirement System. Therefore, an emergency is declared to exist, and 34
this act being necessary for the preservation of the public peace, health, 35
and safety, shall become effective on July 1, 2025 . APPROVED: 2/27/25 36