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24-7-505. Buyout plan for inactive members — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-505. Buyout plan for inactive members — Definition.
(a) As used in this section, “buyout plan” means a voluntary program established by the Board of Trustees of the Arkansas Teacher Retirement System to make a one-time lump-sum payment to a member, surviving spouse, or alternate payee in exchange for a member's, surviving spouse's, or alternate payee's cancellation of membership and retirement benefit rights in the Arkansas Teacher Retirement System.
(b)(1) The board may adopt rules as necessary to implement this section.
(2) A buyout plan established by the board:
(A) May be offered periodically and have a limited term of duration for participation, as determined by a resolution adopted by the board at a meeting of the board;
(B) Shall specifically identify the formulas by which contributory and noncontributory service or a future retirement benefit will be purchased by the system as a one-time lump-sum payment from the system, paid directly to the member, surviving spouse, or alternate payee or transferred to another administrator in compliance with the Internal Revenue Code; and
(C) Applies only to a group of members, group of surviving spouses, or group of alternate payees, who:
(i) Are identified by the board as a group eligible to participate in a buyout plan offered by the board; and
(ii) Elect to participate in a buyout plan in exchange for future benefit rights in the system.
(3) A buyout plan established by the board may be extended, modified, or expanded by board resolution.
(c) A member is eligible to participate in a buyout plan if the member is:
(1) Eligible for deferred retirement under § 24-7-707; and
(2) Inactive for a minimum of one (1) year following the last fiscal year that the member rendered actual service to a covered
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-505
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:24-7-505
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: da401d12def2291948c98a4e107163b34cc3af47dd03c1451db335a199042f37
Source location: content.xml paragraph 6268
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24-7-505. Buyout plan for inactive members — Definition.
(a) As used in this section, “buyout plan” means a voluntary program established by the Board of Trustees of the Arkansas Teacher Retirement System to make a one-time lump-sum payment to a member, surviving spouse, or alternate payee in exchange for a member's, surviving spouse's, or alternate payee's cancellation of membership and retirement benefit rights in the Arkansas Teacher Retirement System.
(b)(1) The board may adopt rules as necessary to implement this section.
(2) A buyout plan established by the board:
(A) May be offered periodically and have a limited term of duration for participation, as determined by a resolution adopted by the board at a meeting of the board;
(B) Shall specifically identify the formulas by which contributory and noncontributory service or a future retirement benefit will be purchased by the system as a one-time lump-sum payment from the system, paid directly to the member, surviving spouse, or alternate payee or transferred to another administrator in compliance with the Internal Revenue Code; and
(C) Applies only to a group of members, group of surviving spouses, or group of alternate payees, who:
(i) Are identified by the board as a group eligible to participate in a buyout plan offered by the board; and
(ii) Elect to participate in a buyout plan in exchange for future benefit rights in the system.
(3) A buyout plan established by the board may be extended, modified, or expanded by board resolution.
(c) A member is eligible to participate in a buyout plan if the member is:
(1) Eligible for deferred retirement under § 24-7-707; and
(2) Inactive for a minimum of one (1) year following the last fiscal year that the member rendered actual service to a covered employer and received at least one-fourth (¼) year of service credit.
(d) The board may offer a buyout plan to surviving spouses or alternate payees who:
(1) Are eligible for a future retirement benefit from the system; and
(2) Have not received a retirement benefit from the system.
(e) A member who participates in a buyout plan shall receive a one-time lump-sum payment from the system that cancels interest in any retirement benefit and all future rights in the system effective upon tender of payment by the system.
(f) A buyout plan may be used to cancel both a member's contributory and noncontributory credited service in the system.
(g) A member who receives a buyout of his or her credited service under this section may repurchase his or her previously credited service as contributory service after becoming an active member of the system as if the service had been private school service.
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Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-707. Deferred retirement.
(a)(1)(A) If an active member becomes inactive before the member reaches sixty (60) years of age and completes five (5) years of actual and reciprocal service or if the member has not obtained a refund or participated in a buyout plan of the member's rights to benefits in the Arkansas Teacher Retirement System under § 24-7-505, then the member is entitled to a deferred annuity when the member becomes sixty (60) years of age as provided in this section.
(B) The member is eligible for deferred retirement if the member has not withdrawn his or her accumulated contributions from the members' deposit account, has not participated in a buyout plan of the member's rights to benefits in the system under § 24-7-505, and is not employed in a position covered by another retirement plan that is supported wholly or in part by state contributions if the member's being vested is based on the other system service.
(2) Upon approval by the Arkansas Teacher Retirement System, the deferred annuity shall commence as of the first day of the calendar month following the date the written application is received by the system.
(3) A member shall elect an option provided for in § 24-7-706 at the time of filing the written application.
(b) An inactive member's deferred annuity shall be a life annuity as provided for in § 24-7-705.
(c) In the event the inactive member dies before qualifying for deferred retirement, no benefits whatsoever shall be paid except under the provisions of § 24-7-711.
(d) If a member fails to submit a complete deferred retirement application within six (6) calendar months of the effective date of benefits, including all additional documentation required by the system, the application shall be void unless an extension is grante
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-707
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 24-7-707. This identifies an authority to review, not proof of applicability.