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24-7-706. Annuity options.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-706. Annuity options.
(a)(1) Before the date the first payment of his or her annuity becomes due, a member may elect to receive his or her annuity as a straight life annuity, or he or she may elect to receive the actuarial equivalent, at that time, of his or her straight life annuity in a reduced annuity payable throughout his or her life.
(2) The member may nominate a beneficiary, in accordance with one (1) of the following options:
(A) Option A — 100% Survivor Annuity.
(i) Under Option A, upon the death of a retirant, his or her reduced annuity shall be continued throughout the life of and paid to such person as he or she shall have nominated by written designation executed and filed with the Board of Trustees of the Arkansas Teacher Retirement System before the date the first payment of his or her annuity becomes due.
(ii) The person designated as a beneficiary by the retirant shall be:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date; or (b) A dependent child of the retirant who has been adjudged physically or mentally incapacitated by a court of competent jurisdiction;
(B) Option B — 50% Survivor Annuity.
(i) Under Option B, upon the death of a retirant, one-half (1/2) of his or her reduced annuity shall be continued throughout the life of and paid to such person as he or she has nominated by written designation executed and filed with the board before the date the first payment of his or her annuity becomes due.
(ii) The person designated as a beneficiary by the retirant shall be:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date; or (b) A dependent child of the retirant who has been adjudged physically or mentally i
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-706
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:24-7-706
Source file: gov.ar.code.title.24.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 65bf49b7f1e99de80c984442f165e7d9f9a2d6f88776c93955b9edf321a55a2e
Source location: content.xml paragraph 7023
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24-7-706. Annuity options.
(a)(1) Before the date the first payment of his or her annuity becomes due, a member may elect to receive his or her annuity as a straight life annuity, or he or she may elect to receive the actuarial equivalent, at that time, of his or her straight life annuity in a reduced annuity payable throughout his or her life.
(2) The member may nominate a beneficiary, in accordance with one (1) of the following options:
(A) Option A — 100% Survivor Annuity.
(i) Under Option A, upon the death of a retirant, his or her reduced annuity shall be continued throughout the life of and paid to such person as he or she shall have nominated by written designation executed and filed with the Board of Trustees of the Arkansas Teacher Retirement System before the date the first payment of his or her annuity becomes due.
(ii) The person designated as a beneficiary by the retirant shall be:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date; or (b) A dependent child of the retirant who has been adjudged physically or mentally incapacitated by a court of competent jurisdiction;
(B) Option B — 50% Survivor Annuity.
(i) Under Option B, upon the death of a retirant, one-half (1/2) of his or her reduced annuity shall be continued throughout the life of and paid to such person as he or she has nominated by written designation executed and filed with the board before the date the first payment of his or her annuity becomes due.
(ii) The person designated as a beneficiary by the retirant shall be:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date; or (b) A dependent child of the retirant who has been adjudged physically or mentally incapacitated by a court of competent jurisdiction; or
(C) Option C — Annuity for Ten (10) Years Certain and Life Thereafter.
(i) Under Option C, a retirant shall receive a reduced annuity payable throughout his or her life with the provision that if he or she dies before he or she has received one hundred twenty (120) monthly annuity payments, the payments shall be continued for the remainder of the period of one hundred twenty (120) months and paid to such persons in equal shares as the retirant has nominated by written designation executed and filed with the board.
(ii) If the designated beneficiaries predecease the retirant, the retirant may nominate successor beneficiaries or may elect to return to his or her single lifetime benefit equivalent by written designation executed and filed with the board, to be effective the month following receipt of his or her election by the Arkansas Teacher Retirement System.
(iii)(a) If the designated beneficiary is the spouse of the retirant and the marriage ends in divorce or other marriage dissolution, the retirant may:
(1) Nominate a successor beneficiary; or
(2) Elect to return to his or her single lifetime benefit equivalent.
(b) The nomination or election made under subdivision (a)(2)(C)(iii)(a) of this section shall be in writing, executed by the retirant, and filed with the board, to be effective the month following receipt of his or her election by the system.
(iv) If no designated beneficiary survives the retirant, the annuity reserve for the remainder of the annuity payments shall be paid to the retirant's estate.
(v) If the last designated beneficiary receiving annuity payments dies before all annuity payments are made, the annuity reserve for the remainder of the annuity payments shall be paid to the beneficiary's estate.
(vi) Effective the month following completion of the one-hundred-twenty-month period, the retirant's annuity shall return to his or her single lifetime benefit equivalent.
(3) In addition to the persons eligible to be designated as a beneficiary under either Option A or Option B in subdivision (a)(2) of this section, the board may promulgate rules concerning the addition of classes of eligible persons to be designated as a beneficiary under this section and for the rights of option beneficiaries of deceased disability retirees under § 24-7-704.
(b)(1)(A) If a member's marital status changes after retirement due to the death of the member's spouse, or a divorce or marriage dissolution from the member's spouse who is also the member's designated beneficiary, then the member may elect to cancel any optional plan designating the former spouse as a beneficiary.
(B) A member's election under subdivision (b)(1)(A) of this section shall cause the member to return to his or her lifetime benefit equivalent, to be effective the month following the system's receipt of the approved form.
(2) A retirant who is receiving a single lifetime benefit and who marries after retirement may elect to cancel his or her single lifetime benefit and may elect an annuity providing continuing lifetime benefits to his or her spouse under rules promulgated by the board.
(c) If a member fails to elect an option, his or her annuity shall be paid to him or her as a straight life annuity.
(d)(1) Notwithstanding anything contained in this section to the contrary, the residue beneficiary under § 24-7-709 may elect to cancel the form of annuity in effect and elect Option A — 100% Survivor Annuity upon the death of a retirant on or after July 1, 1989, if:
(A) The retirant died within one (1) year following the effective date of retirement;
(B) The retirant was receiving a straight life annuity; and
(C) The residue beneficiary otherwise qualifies for an Option A — 100% Survivor Annuity.
(2) The election to change may be made only one (1) time and shall be on a form approved by the system.
(3) The election form must be received by the system within one hundred twenty (120) days of the death of the retiree.
(e)(1) Notwithstanding anything in this section to the contrary, a retirant who retired on or after July 1, 1994, may elect to cancel his or her election made at retirement for receiving an annuity and elect another option, provided that he or she:
(A) Does so within one (1) year after July 1, 1995, or within one (1) year of retirement;
(B) Files with the system a new election form approved by the system; and
(C)(i) Repays to the system the difference between the amount of the annuity received when he or she retired and the new annuity due as a result of the election change, plus interest from July 1, 1994, or his or her retirement date, whichever is later, to the date of payment in full.
(ii) The difference shall be calculated retroactively to July 1, 1994, or his or her retirement date, whichever is later.
(2) The election to change shall be made only one (1) time.
(3) The election change shall be effective retroactively to the effective date of his or her annuity.
(f) The board shall:
(1) Promulgate rules as necessary to administer this section; and
(2) Institute fair procedures for members of the system, including without limitation:
(A) Requirements for designating a beneficiary; and
(B) Spousal election.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-704. Disability retirement.
(a)(1)(A) An active member in employer service with five (5) or more years of actual and reciprocal service who becomes totally and permanently physically or mentally incapacitated for his or her job duties as a result of a personal injury or disease may be retired by the Board of Trustees of the Arkansas Teacher Retirement System upon a determination of disability consistent with this section and approval of a written application filed with the Arkansas Teacher Retirement System.
(B) An active member who is eligible for retirement under § 24-7-701 is not eligible for disability retirement.
(C)(i) An active member who has met the eligibility requirement of subdivision (a)(1)(A) of this section shall meet the termination of covered employment requirements under § 24-7-502 to be eligible for disability retirement benefits.
(ii) For eligibility under this section, a member is considered active for an additional fiscal year following the last fiscal year that the member renders actual service to a covered employer and obtains at least one-fourth (¼) year of service credit.
(iii) Service credit used in calculating any benefits paid under this section means days of service, including paid sick leave covered by the employer.
(D) The member is qualified to receive disability retirement benefits if by majority opinion the medical committee reports to the board in writing that its review of the member's application and accompanying documentation finds:
(i) The member is physically or mentally incapacitated;
(ii) The member exhibits symptoms of physical or mental incapacitation while the member is employed by a system employer as an active member;
(iii) The member is unable to perform his or her current work duties;
(iv) The inc
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-704
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 24-7-704. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
24-7-709. Disposition of member contributions — Residue.
(a)(1)(A) If a retirant and his or her option annuitants, if any, die before receiving annuity payments equal to the member's residue amount, then the residue amount shall be paid to such persons as the retirant shall have nominated by written designation duly executed and filed with the Arkansas Teacher Retirement System.
(B) As used in this section, “residue” means the difference between the accumulated contributions and regular interest credited to the retirement reserve account as of the member's retirement effective date and the total amount of annuities paid.
(2) If a retirant and his or her option annuitants die and the member has failed to designate a beneficiary or if all designated beneficiaries have predeceased the retirant, the residue shall be paid to the retirant's estate.
(b) If upon the termination of the option annuity no surviving beneficiary designated by the member survives and it is impracticable to make payment to the member's estate, the residue shall be forfeited to the trust assets of the system subject to any valid claim of the member's estate under § 24-7-734.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 24-7-709
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 24-7-709. This identifies an authority to review, not proof of applicability.