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24-7-705. Life annuity.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-705. Life annuity.
(a)(1)(A)(i) For a member who is retired or who is in the Teacher Deferred Retirement Option Plan as of June 30, 2013, the multipliers used at the time of retirement or entry into the Teacher Deferred Retirement Option Plan shall remain the multipliers used to calculate the member's retirement benefits for retirement or the Teacher Deferred Retirement Option Plan.
(ii) For all service earned through June 30, 2013, by a member who is active or inactive on June 30, 2013, he or she shall receive a straight life annuity equal to his or her number of years of credited service for which member contributions were made as provided in § 24-7-406 multiplied by two and fifteen-hundredths percent (2.15%) of his or her final average salary, or a straight life annuity equal to his or her number of years of credited service rendered after June 30, 1986, for which no member contributions were made as provided in § 24-7-406 multiplied by one and thirty-nine hundredths percent (1.39%) of his or her final average salary, or a combination of both.
(B)(i) The multipliers in this section shall be determined in accordance with this chapter and the rules and resolutions of the Board of Trustees of the Arkansas Teacher Retirement System as is actuarially appropriate for the Arkansas Teacher Retirement System.
(ii) Before increasing a benefit as provided in this section, the board shall file relevant information concerning the actuarial appropriateness of the action with the Joint Committee on Public Retirement and Social Security Programs.
(2)(A) For a member contributing on only the first seven thousand eight hundred dollars ($7,800) of each annual salary after June 30, 1969, each annual salary used in computing his or her final average salary shall be limited
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-705
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:24-7-705
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: fe949dbe149ddbaba215a50d3c2d2cdc125b194b6e24e2fe77ad9c56e9c948f2
Source location: content.xml paragraph 6973
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24-7-705. Life annuity.
(a)(1)(A)(i) For a member who is retired or who is in the Teacher Deferred Retirement Option Plan as of June 30, 2013, the multipliers used at the time of retirement or entry into the Teacher Deferred Retirement Option Plan shall remain the multipliers used to calculate the member's retirement benefits for retirement or the Teacher Deferred Retirement Option Plan.
(ii) For all service earned through June 30, 2013, by a member who is active or inactive on June 30, 2013, he or she shall receive a straight life annuity equal to his or her number of years of credited service for which member contributions were made as provided in § 24-7-406 multiplied by two and fifteen-hundredths percent (2.15%) of his or her final average salary, or a straight life annuity equal to his or her number of years of credited service rendered after June 30, 1986, for which no member contributions were made as provided in § 24-7-406 multiplied by one and thirty-nine hundredths percent (1.39%) of his or her final average salary, or a combination of both.
(B)(i) The multipliers in this section shall be determined in accordance with this chapter and the rules and resolutions of the Board of Trustees of the Arkansas Teacher Retirement System as is actuarially appropriate for the Arkansas Teacher Retirement System.
(ii) Before increasing a benefit as provided in this section, the board shall file relevant information concerning the actuarial appropriateness of the action with the Joint Committee on Public Retirement and Social Security Programs.
(2)(A) For a member contributing on only the first seven thousand eight hundred dollars ($7,800) of each annual salary after June 30, 1969, each annual salary used in computing his or her final average salary shall be limited to a maximum of seven thousand eight hundred dollars ($7,800).
(B) The limit shall apply to his or her total credited service.
(3) For a member retiring with benefits to be computed on both contributory and noncontributory service under this subsection and free military service first credited after July 1, 1986, under § 24-7-602, the amount of military service to be used in the computation of benefits under this subsection shall be prorated on the ratio of membership service under each plan to his or her total membership service, notwithstanding the fact that some of the military service shall be credited as noncontributory service before July 1, 1986.
(4) All purchased military service, all out-of-state service credited under § 24-7-603, and all overseas service credited under § 24-7-604 shall be counted as contributory service, and benefits based on this service shall be computed using the contributory percent of final average salary set forth in this subsection.
(b)(1) The multiplier on service credit earned shall remain two and fifteen hundredths percent (2.15%) for contributory service and one and thirty-nine hundredths percent (1.39%) for noncontributory service unless the rates are adjusted by the board.
(2) The board may adjust the multiplier for contributory service rendered after June 30, 2013, as follows:
(A) The multiplier rate for contributory service set by the board shall remain in effect unless adjusted by the board;
(B) The multiplier rate for contributory service shall not be less than one and seventy-five hundredths percent (1.75%) or higher than two and fifteen hundredths percent (2.15%);
(C) An increase or decrease to a multiplier rate for contributory service shall apply to a complete fiscal year;
(D) The multiplier rate for contributory service may be adjusted by resolution adopted by the board at a board meeting;
(E) Once a multiplier rate for contributory service is earned in a fiscal year, the multiplier rate may be subject to an increase but not a decrease if adopted by the board;
(F) The board may leave the multiplier rate for contributory service earned in previous years in effect even if the multiplier rate for contributory service is increased for future years;
(G) The board may set a special contributory multiplier rate for the first ten (10) years of service credit as follows:
(i) The multiplier rate for contributory service shall not be less than one and seventy-five hundredths percent (1.75%) or higher than two and fifteen hundredths percent (2.15%);
(ii) The multiplier rate for contributory service used for the first ten (10) years of service shall not be higher than the multiplier rate for subsequent years of service; and
(iii) After a member earns ten (10) years of credited service, the board may increase the multiplier rate earned in the first ten (10) years to the standard multiplier rate for contributory service for all or part of the first ten (10) years of service.
(3) The board may adjust the multiplier rate for noncontributory service for all service rendered after June 30, 2013, as follows:
(A) The multiplier rate for noncontributory service set by the board shall remain in effect unless adjusted by the board;
(B) The multiplier rate for noncontributory service shall not be less than five-tenths of one percent (0.5%) or higher than one and thirty-nine hundredths percent (1.39%);
(C) An increase or decrease to a multiplier rate for noncontributory service shall apply to a complete fiscal year;
(D) The multiplier rate for noncontributory service may be adjusted by resolution adopted by the board at a board meeting;
(E) Once a multiplier rate for noncontributory service is earned in a fiscal year, the multiplier rate may be subject to an increase but not a decrease if adopted by the board;
(F) The board may leave the multiplier rate for noncontributory service earned in previous years in effect even if the multiplier rate for noncontributory service is increased for future years;
(G) The board may set a special noncontributory multiplier rate for the first ten (10) years of service credit as follows:
(i) The multiplier rate for noncontributory service used for the first ten (10) years of service shall not be higher than the multiplier rate for subsequent years of service; and
(ii) After a member earns ten (10) years of credited service, the board may increase the multiplier rate earned in the first ten (10) years to the standard multiplier rate for noncontributory service for all or part of the first ten (10) years of service.
(4) A lower multiplier rate set by the board for contributory service and noncontributory service earned in the first ten (10) years of service shall not be retroactively applied.
(5) The board shall not reduce the multiplier rate for contributory service earned after the first ten (10) years of service unless the:
(A) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and
(B) Board determines that a reduction in the multiplier rate for contributory service is prudent to maintain actuarial soundness.
(c) For all service credit earned by a member after June 30, 2013, he or she shall receive a straight life annuity equal to his or her number of years of credited service multiplied by his or her final average salary as follows:
(1) Credited service for which member contributions were made under § 24-7-406 shall be multiplied by the contributory multiplier in effect for each fiscal year;
(2) Credited service rendered after June 30, 1986, for which no member contributions were made under § 24-7-406 shall be multiplied by the noncontributory multiplier in effect for each fiscal year; and
(3) If the member has accrued both contributory service and noncontributory service, the member's service shall be combined after calculating each amount under this subsection.
(d) Upon a member's retirement, as provided in this act, he or she shall have the right to elect an option provided for in § 24-7-706.
(e) A member retiring before July 1, 1987, shall receive an annuity in accordance with provisions of law in force before July 1, 1987.
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Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-406. Retirement fund assets accounts — Members' deposit account — Contributions.
(a)(1) The members' deposit account is the account:
(A) In which member contributions are accumulated;
(B) From which member refunds of contributions are paid; and
(C) From which transfers are made as provided in this act.
(2) Employer contributions that are paid by an employee instead of an employer shall be:
(A) Credited to the members' deposit account; and
(B) Subject to refund under the same conditions that regular member contributions are refunded.
(3) In the event survivor benefits become payable on account of the death of a member, his or her accumulated contributions standing to his or her credit in the members' deposit account shall be transferred to the survivor benefit account.
(b)(1) Except as provided otherwise in this section, the contributions of a member to the Arkansas Teacher Retirement System shall be the amounts set forth in this subsection.
(2)(A) Each member who first became a member July 1, 1971, or later shall contribute to the system six percent (6%) of his or her salary for all salary earned on or before June 30, 2013.
(B) Beginning July 1, 2013, each member who first became a member July 1, 1971, or later shall contribute to the system the percentage of his or her salary set by the Board of Trustees of the Arkansas Teacher Retirement System under subdivision (b)(8) of this section.
(3) Member contributions before July 1, 1969, shall be in accordance with provisions in force before July 1, 1969.
(4)(A) For each member who first became a member before July 1, 1971, member contributions for the period after June 30, 1969, shall be six percent (6%) of the first seven thousand eight hundred dollars ($7,800) of his or her annual salary thr
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-406
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 24-7-406. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-602. Military service credit.
(a)(1) If an active member of the Arkansas Teacher Retirement System enters the United States Armed Forces during a period that a federal military draft was in effect and obtains a refund of member contributions from the system, the compulsory military service required of the member may be established as free credited service under this subchapter, if after an honorable discharge from the United States Armed Forces and before retirement the member repays to the system the actuarial equivalent of the member's refunded service.
(2) In addition, an active member who entered the United States Armed Forces during any period that a federal military draft was in effect and who becomes an active member after an honorable discharge from the United States Armed Forces is eligible to receive free military service credit under this section, whether or not the member has five (5) or more years of credited service at the time of the reemployment.
(3) When a member who is first employed after serving in the United States Armed Forces during a period of time that the military draft was in effect, he or she is eligible to receive free military service credit under this section if the member:
(A) Completes five (5) or more years of actual service in the system; and
(B) Receives an honorable discharge.
(b) All United States Armed Forces service not otherwise creditable under this section shall be creditable, provided the member pays to the system the actuarial equivalent for the service credit.
(c)(1) Effective December 12, 1994, a member who leaves employment with a school to serve, on a voluntary or involuntary basis, in the uniformed services of the United States and returns to employment with a school shall be treated as not having incu
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-602
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 24-7-602. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-603. Out-of-state service — Definition.
(a) As used in this section, “out-of-state service” means service rendered in any state except Arkansas in a position that would have been covered by the Arkansas Teacher Retirement System had the service been actual service covered by the system if rendered in the state.
(b) Out-of-state service purchased before July 1, 1987, shall be credited as service under this section in accordance with provisions in force before July 1, 1987.
(c) From and after July 1, 1987, an active member shall be eligible to establish out-of-state service to be credited as service under this subchapter under the following conditions:
(1)(A) The out-of-state service credit to be granted shall be limited to service for which no benefit could be paid by another system similar in purpose to this system, except Social Security, if the member had left on deposit his or her contributions to the other system.
(B) The credit under subdivision (c)(1)(A) of this section is limited to fifteen (15) years;
(2)(A) The member shall pay to the system for each year of service credit granted the actuarial equivalent of the member's benefits.
(B) The payment shall be credited to the member's account in the members' deposit account and shall be in addition to regular member contributions thereto;
(3)(A) The out-of-state service shall not become credited service under this system until the member has established five (5) or more years of actual service.
(B) If a member ceases to be an active member before the out-of-state service has been established as system-credited service, the member payments made under this section shall be refundable;
(4) The benefit program to be applied to each year of service credit being granted shall be the benefit progra
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-603
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 24-7-603. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-604. Overseas service.
(a) As used in this section, “overseas service” means service in an American-type overseas school sponsored and approved by either the United States Department of State or the United States Department of Defense, or service rendered in the Peace Corps or AmeriCorps VISTA, Volunteers in Service to America.
(b) A member of the Arkansas Teacher Retirement System may receive membership service credit for service in an overseas school subject to the following conditions:
(1) To be eligible for overseas service credit, a member must have a minimum of five (5) years of membership service in a position covered by the system;
(2)(A) The overseas service credit to be granted shall be limited to service for which no benefit could be paid by another system similar in purpose to this system, except Social Security.
(B) The maximum overseas service credited to any member shall be ten (10) years;
(3)(A) To be eligible for a year of overseas service credit, a member must have rendered the minimum days of service required for a fiscal year of service credit under § 24-7-601.
(B) Fractions of years of service may be credited in keeping with policies of the Board of Trustees of the Arkansas Teacher Retirement System as provided by § 24-7-601;
(4)(A) Overseas service credit may be established by paying to the system the actuarial equivalent of the member's benefits.
(B) The employer's cost-of-service credit may be paid either by the employer or by the member.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-604
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 24-7-604. This identifies an authority to review, not proof of applicability.