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24-2-701. Financial objectives and actuarial valuation.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-2-701. Financial objectives and actuarial valuation.
(a) The general financial objective of each Arkansas public employee retirement plan shall be to establish and receive contributions that, expressed as percentages of active member payroll, will remain approximately level from generation to generation of state citizens. More specifically, contributions received each year shall be sufficient both:
(1) To fully cover the costs of benefit commitments being made to members for their service being rendered in that year; and
(2)(A) To make a level payment that if paid annually over a reasonable period of future years will fully cover the unfunded costs of benefit commitments for service previously rendered.
(B) Alternatively, if the costs of benefit commitments for service previously rendered are overfunded, the plan may deduct a level payment that if deducted annually over a reasonable period of future years will fully liquidate the overfunded portion of such costs.
(b) Each state public employee retirement plan shall cause an actuarial valuation of the plan or fund to be made at least biennially, and preferably annually, to determine how well the plan is meeting the objectives set forth in subsection (a) of this section.
(c) The employer contribution rates to the retirement systems shall be as follows:
(1)(A) For the Arkansas Teacher Retirement System, the Board of Trustees of the Arkansas Teacher Retirement System shall establish employer contribution rates prospectively each year.
(B) The employer contribution rates shall be based on the actuary's determination of the rate required to fund the plan as necessary to meet the general financial objective set forth in subsection (a) of this section.
(C) The employer contribution rates shall be the rates
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-2-701
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:24-2-701
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: d71dad25ab668a8ce03e8599ee4deeb97a41eb2827293ddf30cfb40a16d7919f
Source location: content.xml paragraph 1038
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24-2-701. Financial objectives and actuarial valuation.
(a) The general financial objective of each Arkansas public employee retirement plan shall be to establish and receive contributions that, expressed as percentages of active member payroll, will remain approximately level from generation to generation of state citizens. More specifically, contributions received each year shall be sufficient both:
(1) To fully cover the costs of benefit commitments being made to members for their service being rendered in that year; and
(2)(A) To make a level payment that if paid annually over a reasonable period of future years will fully cover the unfunded costs of benefit commitments for service previously rendered.
(B) Alternatively, if the costs of benefit commitments for service previously rendered are overfunded, the plan may deduct a level payment that if deducted annually over a reasonable period of future years will fully liquidate the overfunded portion of such costs.
(b) Each state public employee retirement plan shall cause an actuarial valuation of the plan or fund to be made at least biennially, and preferably annually, to determine how well the plan is meeting the objectives set forth in subsection (a) of this section.
(c) The employer contribution rates to the retirement systems shall be as follows:
(1)(A) For the Arkansas Teacher Retirement System, the Board of Trustees of the Arkansas Teacher Retirement System shall establish employer contribution rates prospectively each year.
(B) The employer contribution rates shall be based on the actuary's determination of the rate required to fund the plan as necessary to meet the general financial objective set forth in subsection (a) of this section.
(C) The employer contribution rates shall be the rates determined by the Board of Trustees of the Arkansas Teacher Retirement System under § 24-7-401(c) and based on the annual actuarial valuation of the Arkansas Teacher Retirement System;
(2) For the State Police Retirement System, twenty-two percent (22%); and
(3)(A) For the Arkansas Public Employees' Retirement System, the Board of Trustees of the Arkansas Public Employees' Retirement System shall establish employer contribution rates prospectively each year, and the rates shall be based on the actuary's determination of the rate required to fund the plan in accordance with the objectives set forth in subsection (a) of this section.
(B) The employer contribution rates shall be the rates determined by the annual actuarial valuation.
(d) Subsection (c) of this section shall not be construed as affecting in any way the existing methods of determining the years of credited service for computing benefits or determining retirement eligibility.
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Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-401. Fund contributions — Fund rates.
(a)(1) The financial objective of the Arkansas Teacher Retirement System is to establish and receive contributions that expressed as percentages of active member payroll will remain approximately level from generation to generation of Arkansas citizens.
(2) Contributions received each year shall be sufficient:
(A) To fully cover the costs of benefit commitments being made to members for their service being rendered in that year; and
(B) To make a level payment that if paid annually over a reasonable period of future years will fully cover the unfunded costs of benefit commitments for service previously rendered.
(3) If the costs of benefit commitments for service previously rendered are overfunded, the plan may deduct a level payment that if deducted annually over a reasonable period of future years will fully liquidate the overfunded portion of the costs.
(b) An actuarial valuation of the entire system shall be made at least annually by the Board of Trustees of the Arkansas Teacher Retirement System's actuary.
(c)(1) For each fiscal year, the Board of Trustees of the Arkansas Teacher Retirement System shall establish employer contribution rates for the system prospectively and for each fiscal year thereafter.
(2) The employer contribution rates shall be based on the actuary's determination of the rate required to fund the plan in accordance with the objectives stated in subsection (a) of this section.
(3) The employer contribution rates shall be the rates determined by the board based on the annual actuarial valuation.
(4) For the fiscal years ending June 30, 2008, through June 30, 2013, the employer contribution rate shall not exceed fourteen percent (14%).
(5)(A)(i) Beginning July 1, 2015, and for each
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-401
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 24-7-401. This identifies an authority to review, not proof of applicability.