Ark. Code Ann. § 24-7-401 — AR Code / Title 24 / Chapter 7 / Subchapter 4 / Section 24-7-401
Arkansas Code of 1987 (2023) Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) Chapter 7 - RETIREMENT OF EMPLOYEES OF SCHOOLS AND EDUCATIONAL INSTITUTIONS (§§ 24-7-101 — 24-7-1607) Subchapter 4 - ARKANSAS TEACHER RETIREMENT SYSTEM - FUNDS AND MANAGEMENT OF ASSETS (§§ 24-7-401 — 24-7-411) Section 24-7-401 - Fund contributions - Fund rates
Status: in_force

(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 fiscal year thereafter, the employer contribution rate shall not exceed fifteen percent (15%). (ii) Until July 1, 2015, the employer contribution rate shall not exceed fourteen percent (14%). (B) (i) For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, the board may modify the employer contribution rate for future fiscal years above fourteen percent (14%) in increments of one-fourth of one percent (0.25%) per fiscal year provided that the system has a greater than eighteen-year amortization period to pay unfunded liabilities without an employer contribution rate of more than fourteen percent (14%) limited to a maximum employer contribution rate of fifteen percent (15%). (ii) If a report provided by the system's actuary shows that the system's amortization period to pay unfunded liabilities is eighteen (18) years or less with a fourteen-percent employer contribution rate, then the employer contribution rate shall not exceed fourteen percent (14%). (iii) (a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase. (b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase. (c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase. (d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value. (d) The employer contribution rate shall be such that the amortization period for all unfunded liability shall not exceed thirty (30) years. However, under no circumstance shall the required employer contribution rate exceed the maximum percentage rate under subsection (c) of this section. (e) (1) The board shall annually notify the employers of the employer contribution rate established by the board for the upcoming fiscal year. (2) Local school districts shall pay the teacher retirement employment contribution for any eligible employee in accordance with rules established by the board. (3) The Department of Education shall pay from the Public School Fund the teacher retirement employer contributions for eligible employees of employers as required by the department's appropriations act and in accordance with rules established by the board. (4) The annual employer contributions to be paid in each year for all other employees by each employer shall be the current state contribution percent multiplied by the total covered salaries of the employer's members in the fiscal year. (5) The employers' contributions shall be remitted to the system in such manner and form and in such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time. (6) Timely payment of the contributions shall be a condition of continuance of participation in the system. (7) (A) All employers shall pay the total employer contribution rate except as provided under subdivision (7)(B) of this section. (B) A public school employer shall pay the employer contribution rate up to fourteen percent (14%), and any additional employer contribution up to fifteen percent (15%) required by a public school employer shall be paid from additional funds appropriated by the State of Arkansas for the purpose of paying Arkansas Teacher Retirement System employer contributions. (8) An increase or decrease in an employer contribution rate shall: (A) Apply to a complete fiscal year; and (B) Remain in effect until modified by the board. (9) The board may adopt a change in the employer contribution rate by resolution at any board meeting. Amended by Act 2021, No. 279,§ 7, eff. 7/1/2021. Amended by Act 2019, No. 594,§ 1, eff. 7/1/2019. Amended by Act 2017, No. 821,§ 1, eff. 4/3/2017. Amended by Act 2013, No. 1446,§ 1, eff. 8/16/2013. Amended by Act 2013, No. 1399,§ 1, eff. 4/22/2013. Acts 1973, No. 427, § 8; 1975, No. 549, § 5; 1977, No. 541, § 4; 1979, No. 681, § 2; 1981, No. 365, § 5; 1983, No. 619, § 8; 1983, No. 665, § 8; A.S.A. 1947, § 80-1442; Acts 1989, No. 472, § 1; 1991, No. 17, § 1; 1991, No. 431, § 2; 1993, No. 435, §§ 2, 3; 2005, No. 1968, § 2; 2006 (1st Ex. Sess.), No. 19, § 9; 2007, No. 403, § 2; 2009, No. 468, § 5.

(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.

(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.

(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 fiscal year thereafter, the employer contribution rate shall not exceed fifteen percent (15%). (ii) Until July 1, 2015, the employer contribution rate shall not exceed fourteen percent (14%). (B) (i) For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, the board may modify the employer contribution rate for future fiscal years above fourteen percent (14%) in increments of one-fourth of one percent (0.25%) per fiscal year provided that the system has a greater than eighteen-year amortization period to pay unfunded liabilities without an employer contribution rate of more than fourteen percent (14%) limited to a maximum employer contribution rate of fifteen percent (15%). (ii) If a report provided by the system's actuary shows that the system's amortization period to pay unfunded liabilities is eighteen (18) years or less with a fourteen-percent employer contribution rate, then the employer contribution rate shall not exceed fourteen percent (14%). (iii) (a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase. (b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase. (c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase. (d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value.

(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 fiscal year thereafter, the employer contribution rate shall not exceed fifteen percent (15%). (ii) Until July 1, 2015, the employer contribution rate shall not exceed fourteen percent (14%). (B) (i) For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, the board may modify the employer contribution rate for future fiscal years above fourteen percent (14%) in increments of one-fourth of one percent (0.25%) per fiscal year provided that the system has a greater than eighteen-year amortization period to pay unfunded liabilities without an employer contribution rate of more than fourteen percent (14%) limited to a maximum employer contribution rate of fifteen percent (15%). (ii) If a report provided by the system's actuary shows that the system's amortization period to pay unfunded liabilities is eighteen (18) years or less with a fourteen-percent employer contribution rate, then the employer contribution rate shall not exceed fourteen percent (14%). (iii) (a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase. (b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase. (c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase. (d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value.

(A) (i) Beginning July 1, 2015, and for each fiscal year thereafter, the employer contribution rate shall not exceed fifteen percent (15%). (ii) Until July 1, 2015, the employer contribution rate shall not exceed fourteen percent (14%).

(i) Beginning July 1, 2015, and for each fiscal year thereafter, the employer contribution rate shall not exceed fifteen percent (15%).

(ii) Until July 1, 2015, the employer contribution rate shall not exceed fourteen percent (14%).

(B) (i) For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, the board may modify the employer contribution rate for future fiscal years above fourteen percent (14%) in increments of one-fourth of one percent (0.25%) per fiscal year provided that the system has a greater than eighteen-year amortization period to pay unfunded liabilities without an employer contribution rate of more than fourteen percent (14%) limited to a maximum employer contribution rate of fifteen percent (15%). (ii) If a report provided by the system's actuary shows that the system's amortization period to pay unfunded liabilities is eighteen (18) years or less with a fourteen-percent employer contribution rate, then the employer contribution rate shall not exceed fourteen percent (14%). (iii) (a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase. (b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase. (c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase. (d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value.

(i) For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, the board may modify the employer contribution rate for future fiscal years above fourteen percent (14%) in increments of one-fourth of one percent (0.25%) per fiscal year provided that the system has a greater than eighteen-year amortization period to pay unfunded liabilities without an employer contribution rate of more than fourteen percent (14%) limited to a maximum employer contribution rate of fifteen percent (15%).

(ii) If a report provided by the system's actuary shows that the system's amortization period to pay unfunded liabilities is eighteen (18) years or less with a fourteen-percent employer contribution rate, then the employer contribution rate shall not exceed fourteen percent (14%).

(iii) (a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase. (b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase. (c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase. (d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value.

(a) An increase in the employer contribution rate shall only occur if the system implements cost savings from member benefit programs or increased member contributions, or both, measured after July 1, 2013, that equal or exceed the value of the employer contribution increase before or at the same time as an employer contribution increase.

(b) The cost savings from member benefit programs or increased member contributions, or both, shall take place or be approved before or at the same time as an employer contribution increase.

(c) The system may rely upon actuarial reports by the system's actuary to determine the relative impact of changes to member benefit programs or increased member contributions, or both, including whether the cost savings from member benefit programs or increased member contributions, or both, are equal to or exceed the value of the proposed employer contribution increase.

(d) The value of cost savings from a member benefit program or member contribution increases shall be set at the time of the initial actuarial report that establishes the estimated value and shall remain as initially set unless the member benefit program or member contribution rate has changes after the actuarial report sets value.

(d) The employer contribution rate shall be such that the amortization period for all unfunded liability shall not exceed thirty (30) years. However, under no circumstance shall the required employer contribution rate exceed the maximum percentage rate under subsection (c) of this section.

(e) (1) The board shall annually notify the employers of the employer contribution rate established by the board for the upcoming fiscal year. (2) Local school districts shall pay the teacher retirement employment contribution for any eligible employee in accordance with rules established by the board. (3) The Department of Education shall pay from the Public School Fund the teacher retirement employer contributions for eligible employees of employers as required by the department's appropriations act and in accordance with rules established by the board. (4) The annual employer contributions to be paid in each year for all other employees by each employer shall be the current state contribution percent multiplied by the total covered salaries of the employer's members in the fiscal year. (5) The employers' contributions shall be remitted to the system in such manner and form and in such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time. (6) Timely payment of the contributions shall be a condition of continuance of participation in the system. (7) (A) All employers shall pay the total employer contribution rate except as provided under subdivision (7)(B) of this section. (B) A public school employer shall pay the employer contribution rate up to fourteen percent (14%), and any additional employer contribution up to fifteen percent (15%) required by a public school employer shall be paid from additional funds appropriated by the State of Arkansas for the purpose of paying Arkansas Teacher Retirement System employer contributions. (8) An increase or decrease in an employer contribution rate shall: (A) Apply to a complete fiscal year; and (B) Remain in effect until modified by the board. (9) The board may adopt a change in the employer contribution rate by resolution at any board meeting.

(1) The board shall annually notify the employers of the employer contribution rate established by the board for the upcoming fiscal year.

(2) Local school districts shall pay the teacher retirement employment contribution for any eligible employee in accordance with rules established by the board.

(3) The Department of Education shall pay from the Public School Fund the teacher retirement employer contributions for eligible employees of employers as required by the department's appropriations act and in accordance with rules established by the board.

(4) The annual employer contributions to be paid in each year for all other employees by each employer shall be the current state contribution percent multiplied by the total covered salaries of the employer's members in the fiscal year.

(5) The employers' contributions shall be remitted to the system in such manner and form and in such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time.

(6) Timely payment of the contributions shall be a condition of continuance of participation in the system.

(7) (A) All employers shall pay the total employer contribution rate except as provided under subdivision (7)(B) of this section. (B) A public school employer shall pay the employer contribution rate up to fourteen percent (14%), and any additional employer contribution up to fifteen percent (15%) required by a public school employer shall be paid from additional funds appropriated by the State of Arkansas for the purpose of paying Arkansas Teacher Retirement System employer contributions.

(A) All employers shall pay the total employer contribution rate except as provided under subdivision (7)(B) of this section.

(B) A public school employer shall pay the employer contribution rate up to fourteen percent (14%), and any additional employer contribution up to fifteen percent (15%) required by a public school employer shall be paid from additional funds appropriated by the State of Arkansas for the purpose of paying Arkansas Teacher Retirement System employer contributions.

(8) An increase or decrease in an employer contribution rate shall: (A) Apply to a complete fiscal year; and (B) Remain in effect until modified by the board.

(A) Apply to a complete fiscal year; and

(B) Remain in effect until modified by the board.

(9) The board may adopt a change in the employer contribution rate by resolution at any board meeting.

Amended by Act 2021, No. 279,§ 7, eff. 7/1/2021.

Amended by Act 2019, No. 594,§ 1, eff. 7/1/2019.

Amended by Act 2017, No. 821,§ 1, eff. 4/3/2017.

Amended by Act 2013, No. 1446,§ 1, eff. 8/16/2013.

Amended by Act 2013, No. 1399,§ 1, eff. 4/22/2013.

Acts 1973, No. 427, § 8; 1975, No. 549, § 5; 1977, No. 541, § 4; 1979, No. 681, § 2; 1981, No. 365, § 5; 1983, No. 619, § 8; 1983, No. 665, § 8; A.S.A. 1947, § 80-1442; Acts 1989, No. 472, § 1; 1991, No. 17, § 1; 1991, No. 431, § 2; 1993, No. 435, §§ 2, 3; 2005, No. 1968, § 2; 2006 (1st Ex. Sess.), No. 19, § 9; 2007, No. 403, § 2; 2009, No. 468, § 5.
Ark. Code Ann. § 24-5-118 — AR Code / Title 24 / Chapter 5 / Subchapter 1 / Section 24-5-118
Benefits - Annuity options
Status: in_force

Before the date the first payment of an annuity becomes due, but not thereafter, a person about to become a retirant may elect, in lieu of a straight life annuity as set forth in § 24-5-115 , to have the annuity reduced and to nominate a beneficiary, as provided by Option A or Option B: (1) Option A. (A) (i) Under Option A, an annuity payable to the retirant shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (ii) This subdivision (1)(A) shall apply to all members and retirants. (B) If the retirant dies before having received one hundred twenty (120) monthly payments of the reduced annuity, the reduced annuity to which the retirant would have been entitled, if living, shall be paid for the remainder of the one-hundred-twenty-month period to such person as the deceased retirant shall have nominated by written designation, duly executed and filed with the Board of Trustees of the Arkansas State Highway Employees' Retirement System. (C) If the beneficiary does not survive the retirant, the retirant may name another beneficiary, or failing to name a beneficiary, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the retirant's estate. (D) If the beneficiary survives the retirant but dies before the end of the one-hundred-twenty-month period, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the beneficiary's designated beneficiary; or (2) Option B. (A) (i) (a) Under Option B, an annuity payable to the retirant and surviving beneficiary shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (b) The reduction factor is calculated as the ratio of the actuarial present value of a joint and a fifty percent (50%) survivor annuity to the actuarial present value of the annuity payable under § 24-5-115 . (c) The present values are calculated using standard actuarial formulas and based on a mortality table and discount interest rate calculated by the plan's actuary. (d) This subdivision (2)(A)(i) applies to all members and retirants. (ii) Upon the retirant's death, one-half (½) of the reduced annuity to which the retirant would have been entitled, if living, shall be paid to the surviving beneficiary for the remainder of his or her life, if the beneficiary was either the retirant's spouse for at least one (1) year immediately preceding the first payment due date of the retired member's annuity or another person forty (40) years of age or older on the first payment due date receiving more than one-half (½) of his or her support from the retirant for at least two (2) years immediately preceding the first payment due date of the retired member's annuity. (iii) If both the retirant and his or her named beneficiary die before the annuity payments have amounted to the sum of the member's accumulated contributions and interest that is vested at the date of retirement, the difference between the benefits paid and the member's contribution account at the date of retirement shall be paid to the estate of the person to whom the last annuity preceding death was paid. (iv) If no annuities had been paid prior to the member's death, then the balance in the member's account shall be paid to the member's estate. (B) (i) Should the eligible beneficiary of a member retirant who selected Option B predecease the member retirant, or if divorce or other marriage dissolution occurs, or should the beneficiary who is not a spouse cease to be a qualified beneficiary, then the retirant, by written notification to the Arkansas State Highway Employees' Retirement System, may cancel Option B chosen at retirement and return to a straight life annuity, to be effective the month following receipt of the notification by the system. (ii) The straight life annuity so elected shall then be the amount of the Option B annuity at the date of notification, less any increase that is excluded from the base annuity, multiplied by a fraction, the numerator of which is one hundred (100) and the denominator of which is the percentage of the straight life annuity that the retirant received at the date of retirement, plus the nonbase increase that was excluded in the computation. The effect of the foregoing shall be that the retirant's monthly annuity, after cancellation of Option B, shall be the same amount that it would have been had a straight life annuity been selected at the date of retirement. (iii) No further changes in benefit options for retirants shall be permitted. Amended by Act 2023, No. 105,§ 4, eff. 7/1/2023. Amended by Act 2023, No. 105,§ 3, eff. 7/1/2023. Amended by Act 2021, No. 139,§ 1, eff. 7/1/2021. Amended by Act 2013, No. 1134,§ 1, eff. 8/16/2013. Acts 1949, No. 454, § 12; 1971, No. 246, § 1; 1975, No. 599, § 3; 1983, No. 464, § 2; 1985, No. 106, § 1; A.S.A. 1947, § 76-1912; Acts 1987, No. 119, § 1; 1987, No. 315, § 1; 1997, No. 347, § 6; 1997, No. 1053, § 17; 1997, No. 1067, § 1; 1999, No. 1508, § 7; 2003, No. 205, § 1.

Before the date the first payment of an annuity becomes due, but not thereafter, a person about to become a retirant may elect, in lieu of a straight life annuity as set forth in § 24-5-115 , to have the annuity reduced and to nominate a beneficiary, as provided by Option A or Option B:

(1) Option A. (A) (i) Under Option A, an annuity payable to the retirant shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (ii) This subdivision (1)(A) shall apply to all members and retirants. (B) If the retirant dies before having received one hundred twenty (120) monthly payments of the reduced annuity, the reduced annuity to which the retirant would have been entitled, if living, shall be paid for the remainder of the one-hundred-twenty-month period to such person as the deceased retirant shall have nominated by written designation, duly executed and filed with the Board of Trustees of the Arkansas State Highway Employees' Retirement System. (C) If the beneficiary does not survive the retirant, the retirant may name another beneficiary, or failing to name a beneficiary, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the retirant's estate. (D) If the beneficiary survives the retirant but dies before the end of the one-hundred-twenty-month period, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the beneficiary's designated beneficiary; or

(A) (i) Under Option A, an annuity payable to the retirant shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (ii) This subdivision (1)(A) shall apply to all members and retirants.

(i) Under Option A, an annuity payable to the retirant shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 .

(ii) This subdivision (1)(A) shall apply to all members and retirants.

(B) If the retirant dies before having received one hundred twenty (120) monthly payments of the reduced annuity, the reduced annuity to which the retirant would have been entitled, if living, shall be paid for the remainder of the one-hundred-twenty-month period to such person as the deceased retirant shall have nominated by written designation, duly executed and filed with the Board of Trustees of the Arkansas State Highway Employees' Retirement System.

(C) If the beneficiary does not survive the retirant, the retirant may name another beneficiary, or failing to name a beneficiary, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the retirant's estate.

(D) If the beneficiary survives the retirant but dies before the end of the one-hundred-twenty-month period, the annuity for the remainder of the one-hundred-twenty-month period shall be paid to the beneficiary's designated beneficiary; or

(2) Option B. (A) (i) (a) Under Option B, an annuity payable to the retirant and surviving beneficiary shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (b) The reduction factor is calculated as the ratio of the actuarial present value of a joint and a fifty percent (50%) survivor annuity to the actuarial present value of the annuity payable under § 24-5-115 . (c) The present values are calculated using standard actuarial formulas and based on a mortality table and discount interest rate calculated by the plan's actuary. (d) This subdivision (2)(A)(i) applies to all members and retirants. (ii) Upon the retirant's death, one-half (½) of the reduced annuity to which the retirant would have been entitled, if living, shall be paid to the surviving beneficiary for the remainder of his or her life, if the beneficiary was either the retirant's spouse for at least one (1) year immediately preceding the first payment due date of the retired member's annuity or another person forty (40) years of age or older on the first payment due date receiving more than one-half (½) of his or her support from the retirant for at least two (2) years immediately preceding the first payment due date of the retired member's annuity. (iii) If both the retirant and his or her named beneficiary die before the annuity payments have amounted to the sum of the member's accumulated contributions and interest that is vested at the date of retirement, the difference between the benefits paid and the member's contribution account at the date of retirement shall be paid to the estate of the person to whom the last annuity preceding death was paid. (iv) If no annuities had been paid prior to the member's death, then the balance in the member's account shall be paid to the member's estate. (B) (i) Should the eligible beneficiary of a member retirant who selected Option B predecease the member retirant, or if divorce or other marriage dissolution occurs, or should the beneficiary who is not a spouse cease to be a qualified beneficiary, then the retirant, by written notification to the Arkansas State Highway Employees' Retirement System, may cancel Option B chosen at retirement and return to a straight life annuity, to be effective the month following receipt of the notification by the system. (ii) The straight life annuity so elected shall then be the amount of the Option B annuity at the date of notification, less any increase that is excluded from the base annuity, multiplied by a fraction, the numerator of which is one hundred (100) and the denominator of which is the percentage of the straight life annuity that the retirant received at the date of retirement, plus the nonbase increase that was excluded in the computation. The effect of the foregoing shall be that the retirant's monthly annuity, after cancellation of Option B, shall be the same amount that it would have been had a straight life annuity been selected at the date of retirement. (iii) No further changes in benefit options for retirants shall be permitted.

(A) (i) (a) Under Option B, an annuity payable to the retirant and surviving beneficiary shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (b) The reduction factor is calculated as the ratio of the actuarial present value of a joint and a fifty percent (50%) survivor annuity to the actuarial present value of the annuity payable under § 24-5-115 . (c) The present values are calculated using standard actuarial formulas and based on a mortality table and discount interest rate calculated by the plan's actuary. (d) This subdivision (2)(A)(i) applies to all members and retirants. (ii) Upon the retirant's death, one-half (½) of the reduced annuity to which the retirant would have been entitled, if living, shall be paid to the surviving beneficiary for the remainder of his or her life, if the beneficiary was either the retirant's spouse for at least one (1) year immediately preceding the first payment due date of the retired member's annuity or another person forty (40) years of age or older on the first payment due date receiving more than one-half (½) of his or her support from the retirant for at least two (2) years immediately preceding the first payment due date of the retired member's annuity. (iii) If both the retirant and his or her named beneficiary die before the annuity payments have amounted to the sum of the member's accumulated contributions and interest that is vested at the date of retirement, the difference between the benefits paid and the member's contribution account at the date of retirement shall be paid to the estate of the person to whom the last annuity preceding death was paid. (iv) If no annuities had been paid prior to the member's death, then the balance in the member's account shall be paid to the member's estate.

(i) (a) Under Option B, an annuity payable to the retirant and surviving beneficiary shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 . (b) The reduction factor is calculated as the ratio of the actuarial present value of a joint and a fifty percent (50%) survivor annuity to the actuarial present value of the annuity payable under § 24-5-115 . (c) The present values are calculated using standard actuarial formulas and based on a mortality table and discount interest rate calculated by the plan's actuary. (d) This subdivision (2)(A)(i) applies to all members and retirants.

(a) Under Option B, an annuity payable to the retirant and surviving beneficiary shall be reduced by an amount calculated to provide an actuarially equivalent benefit to the annuity payable under § 24-5-115 .

(b) The reduction factor is calculated as the ratio of the actuarial present value of a joint and a fifty percent (50%) survivor annuity to the actuarial present value of the annuity payable under § 24-5-115 .

(c) The present values are calculated using standard actuarial formulas and based on a mortality table and discount interest rate calculated by the plan's actuary.

(d) This subdivision (2)(A)(i) applies to all members and retirants.

(ii) Upon the retirant's death, one-half (½) of the reduced annuity to which the retirant would have been entitled, if living, shall be paid to the surviving beneficiary for the remainder of his or her life, if the beneficiary was either the retirant's spouse for at least one (1) year immediately preceding the first payment due date of the retired member's annuity or another person forty (40) years of age or older on the first payment due date receiving more than one-half (½) of his or her support from the retirant for at least two (2) years immediately preceding the first payment due date of the retired member's annuity.

(iii) If both the retirant and his or her named beneficiary die before the annuity payments have amounted to the sum of the member's accumulated contributions and interest that is vested at the date of retirement, the difference between the benefits paid and the member's contribution account at the date of retirement shall be paid to the estate of the person to whom the last annuity preceding death was paid.

(iv) If no annuities had been paid prior to the member's death, then the balance in the member's account shall be paid to the member's estate.

(B) (i) Should the eligible beneficiary of a member retirant who selected Option B predecease the member retirant, or if divorce or other marriage dissolution occurs, or should the beneficiary who is not a spouse cease to be a qualified beneficiary, then the retirant, by written notification to the Arkansas State Highway Employees' Retirement System, may cancel Option B chosen at retirement and return to a straight life annuity, to be effective the month following receipt of the notification by the system. (ii) The straight life annuity so elected shall then be the amount of the Option B annuity at the date of notification, less any increase that is excluded from the base annuity, multiplied by a fraction, the numerator of which is one hundred (100) and the denominator of which is the percentage of the straight life annuity that the retirant received at the date of retirement, plus the nonbase increase that was excluded in the computation. The effect of the foregoing shall be that the retirant's monthly annuity, after cancellation of Option B, shall be the same amount that it would have been had a straight life annuity been selected at the date of retirement. (iii) No further changes in benefit options for retirants shall be permitted.

(i) Should the eligible beneficiary of a member retirant who selected Option B predecease the member retirant, or if divorce or other marriage dissolution occurs, or should the beneficiary who is not a spouse cease to be a qualified beneficiary, then the retirant, by written notification to the Arkansas State Highway Employees' Retirement System, may cancel Option B chosen at retirement and return to a straight life annuity, to be effective the month following receipt of the notification by the system.

(ii) The straight life annuity so elected shall then be the amount of the Option B annuity at the date of notification, less any increase that is excluded from the base annuity, multiplied by a fraction, the numerator of which is one hundred (100) and the denominator of which is the percentage of the straight life annuity that the retirant received at the date of retirement, plus the nonbase increase that was excluded in the computation. The effect of the foregoing shall be that the retirant's monthly annuity, after cancellation of Option B, shall be the same amount that it would have been had a straight life annuity been selected at the date of retirement.

(iii) No further changes in benefit options for retirants shall be permitted.

Amended by Act 2023, No. 105,§ 4, eff. 7/1/2023.

Amended by Act 2023, No. 105,§ 3, eff. 7/1/2023.

Amended by Act 2021, No. 139,§ 1, eff. 7/1/2021.

Amended by Act 2013, No. 1134,§ 1, eff. 8/16/2013.

Acts 1949, No. 454, § 12; 1971, No. 246, § 1; 1975, No. 599, § 3; 1983, No. 464, § 2; 1985, No. 106, § 1; A.S.A. 1947, § 76-1912; Acts 1987, No. 119, § 1; 1987, No. 315, § 1; 1997, No. 347, § 6; 1997, No. 1053, § 17; 1997, No. 1067, § 1; 1999, No. 1508, § 7; 2003, No. 205, § 1.
Ark. Code Ann. § 24-10-703 — AR Code / Title 24 / Chapter 10 / Subchapter 7 / Section 24-10-703
Contributions
Status: in_force

(a) If a member begins participation in the Local Police and Fire Deferred Retirement Option Plan, the employer and employee contributions shall continue to be paid. (b) Employer and employee contributions for employees who participate in the plan shall be credited to the Arkansas Local Police and Fire Retirement System. (c) (1) For a member who has at least twenty-eight (28) years of service before electing to participate in the plan, seventy-five percent (75%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account. (2) For a member who has at least twenty (20) years of service but less than twenty-eight (28) years of service and is at least fifty-five (55) years of age before electing to participate in the plan, seventy-two percent (72%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account. Acts 2003, No. 1734, § 1; 2005, No. 871, § 2.

(a) If a member begins participation in the Local Police and Fire Deferred Retirement Option Plan, the employer and employee contributions shall continue to be paid.

(b) Employer and employee contributions for employees who participate in the plan shall be credited to the Arkansas Local Police and Fire Retirement System.

(c) (1) For a member who has at least twenty-eight (28) years of service before electing to participate in the plan, seventy-five percent (75%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account. (2) For a member who has at least twenty (20) years of service but less than twenty-eight (28) years of service and is at least fifty-five (55) years of age before electing to participate in the plan, seventy-two percent (72%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account.

(1) For a member who has at least twenty-eight (28) years of service before electing to participate in the plan, seventy-five percent (75%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account.

(2) For a member who has at least twenty (20) years of service but less than twenty-eight (28) years of service and is at least fifty-five (55) years of age before electing to participate in the plan, seventy-two percent (72%) of the member's monthly retirement benefit that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the member's plan account.

Acts 2003, No. 1734, § 1; 2005, No. 871, § 2.
Ark. Code Ann. § 24-8-307 — AR Code / Title 24 / Chapter 8 / Subchapter 3 / Section 24-8-307
Eligibility for benefits - Cities of the first class or cities of the second class
Status: in_force

(a) (1) Upon the approval of a majority of the city council or the board of directors of a city of the first class or a city of the second class, and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court to which this subchapter applies who shall attain fifty (50) years of age and who shall have served at least sixteen (16) years in office as municipal judge shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (b) (1) Upon the approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy (70) years of age or over, who shall have served at least six (6) elective years in office as municipal judge, and who has served not less than two (2) or more elective years as a prosecuting attorney and as an Attorney General of the State of Arkansas shall be entitled to receive benefits provided by this subchapter. (2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter. (c) (1) Upon approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy-eight (78) years of age or over, who shall have served at least four (4) years in office as municipal judge, and who has become disabled while serving as municipal judge shall be entitled to receive benefits provided by this subchapter. (2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter. (d) Any municipal judge receiving retirement benefits under the provisions of this subchapter shall not be eligible to receive retirement benefits under the provisions of §§ 24-8-401 and 24-8-403 - 24-8-408 in addition thereto. (e) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class, any person who shall attain fifty (50) years of age, and who shall have served two (2) or more years as an elected justice of the peace and three (3) or more years as a certified full-time law enforcement officer, and who has held the office of municipal judge not fewer than ten (10) years shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage. (f) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, any person shall be eligible to receive retirement benefits provided by this subchapter who: (A) At fifty-five (55) years of age has sixteen (16) years of service with not fewer than eight (8) years as municipal judge and at least five (5) years as a deputy prosecuting attorney and three (3) years with any state agency for a total of sixteen (16) years; or (B) At fifty (50) years of age has at least ten (10) years of service as municipal judge and at least ten (10) years of service as a juvenile referee for a total of twenty (20) years of service. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to the judge at the time of resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until the surviving spouse's death or remarriage. (g) (1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court or county municipal court who shall attain sixty-two (62) years of age and who shall have served at least sixteen (16) years in office as municipal judge, or at least sixteen (16) years combined service as municipal judge, deputy prosecuting attorney, assistant attorney general, or city attorney shall be eligible to receive retirement benefits provided by this subsection. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement pay for and during the remainder of his or her natural life in an amount, approved by the governing body or governing bodies, equal to not less than thirty-five percent (35%) nor more than fifty percent (50%) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) Any municipal judge who retires under this subsection shall be entitled to continue to participate in and be covered by the city/county health insurance program. (h) (1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any person who has sixteen (16) or more years of public service, with not less than twelve (12) years as municipal judge and at least four (4) years of other public service as a state trooper, as deputy prosecuting attorney, and with active duty in the military aggregated together for a total of sixteen (16) years or more at public service, shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage. (i) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, if county funds are used to partially pay the salary of the judge of the municipal court, any person who at fifty (50) years of age has sixteen (16) years of service, with not less than eight (8) years as municipal judge and at least six (6) years as a prosecuting attorney or deputy prosecuting attorney and two (2) years with any state agency for a total of sixteen (16) years, shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term of qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage. Acts 1973, No. 432, § 3; 1975, No. 392, § 1; 1977, No. 939, § 1; A.S.A. 1947, § 22-916; Acts 1993, No. 239, § 1; 1995, No. 792, § 1; 1997, No. 1322, § 1; 2001, No. 1613, § 1.

(a) (1) Upon the approval of a majority of the city council or the board of directors of a city of the first class or a city of the second class, and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court to which this subchapter applies who shall attain fifty (50) years of age and who shall have served at least sixteen (16) years in office as municipal judge shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(1) Upon the approval of a majority of the city council or the board of directors of a city of the first class or a city of the second class, and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court to which this subchapter applies who shall attain fifty (50) years of age and who shall have served at least sixteen (16) years in office as municipal judge shall be eligible to receive retirement benefits provided by this subchapter.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(b) (1) Upon the approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy (70) years of age or over, who shall have served at least six (6) elective years in office as municipal judge, and who has served not less than two (2) or more elective years as a prosecuting attorney and as an Attorney General of the State of Arkansas shall be entitled to receive benefits provided by this subchapter. (2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(1) Upon the approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy (70) years of age or over, who shall have served at least six (6) elective years in office as municipal judge, and who has served not less than two (2) or more elective years as a prosecuting attorney and as an Attorney General of the State of Arkansas shall be entitled to receive benefits provided by this subchapter.

(2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(A) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(c) (1) Upon approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy-eight (78) years of age or over, who shall have served at least four (4) years in office as municipal judge, and who has become disabled while serving as municipal judge shall be entitled to receive benefits provided by this subchapter. (2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(1) Upon approval of the governing body of the municipality and of the county quorum court if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court who shall attain seventy-eight (78) years of age or over, who shall have served at least four (4) years in office as municipal judge, and who has become disabled while serving as municipal judge shall be entitled to receive benefits provided by this subchapter.

(2) (A) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(A) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(B) In addition thereto, the surviving spouse of the judge shall be entitled to the benefits provided in this subchapter.

(d) Any municipal judge receiving retirement benefits under the provisions of this subchapter shall not be eligible to receive retirement benefits under the provisions of §§ 24-8-401 and 24-8-403 - 24-8-408 in addition thereto.

(e) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class, any person who shall attain fifty (50) years of age, and who shall have served two (2) or more years as an elected justice of the peace and three (3) or more years as a certified full-time law enforcement officer, and who has held the office of municipal judge not fewer than ten (10) years shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

(1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class, any person who shall attain fifty (50) years of age, and who shall have served two (2) or more years as an elected justice of the peace and three (3) or more years as a certified full-time law enforcement officer, and who has held the office of municipal judge not fewer than ten (10) years shall be eligible to receive retirement benefits provided by this subchapter.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section.

(4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

(f) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, any person shall be eligible to receive retirement benefits provided by this subchapter who: (A) At fifty-five (55) years of age has sixteen (16) years of service with not fewer than eight (8) years as municipal judge and at least five (5) years as a deputy prosecuting attorney and three (3) years with any state agency for a total of sixteen (16) years; or (B) At fifty (50) years of age has at least ten (10) years of service as municipal judge and at least ten (10) years of service as a juvenile referee for a total of twenty (20) years of service. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to the judge at the time of resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until the surviving spouse's death or remarriage.

(1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, any person shall be eligible to receive retirement benefits provided by this subchapter who: (A) At fifty-five (55) years of age has sixteen (16) years of service with not fewer than eight (8) years as municipal judge and at least five (5) years as a deputy prosecuting attorney and three (3) years with any state agency for a total of sixteen (16) years; or (B) At fifty (50) years of age has at least ten (10) years of service as municipal judge and at least ten (10) years of service as a juvenile referee for a total of twenty (20) years of service.

(A) At fifty-five (55) years of age has sixteen (16) years of service with not fewer than eight (8) years as municipal judge and at least five (5) years as a deputy prosecuting attorney and three (3) years with any state agency for a total of sixteen (16) years; or

(B) At fifty (50) years of age has at least ten (10) years of service as municipal judge and at least ten (10) years of service as a juvenile referee for a total of twenty (20) years of service.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to the judge at the time of resignation, retirement, or succession in office.

(3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section.

(4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until the surviving spouse's death or remarriage.

(g) (1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court or county municipal court who shall attain sixty-two (62) years of age and who shall have served at least sixteen (16) years in office as municipal judge, or at least sixteen (16) years combined service as municipal judge, deputy prosecuting attorney, assistant attorney general, or city attorney shall be eligible to receive retirement benefits provided by this subsection. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement pay for and during the remainder of his or her natural life in an amount, approved by the governing body or governing bodies, equal to not less than thirty-five percent (35%) nor more than fifty percent (50%) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) Any municipal judge who retires under this subsection shall be entitled to continue to participate in and be covered by the city/county health insurance program.

(1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any judge of a municipal court or county municipal court who shall attain sixty-two (62) years of age and who shall have served at least sixteen (16) years in office as municipal judge, or at least sixteen (16) years combined service as municipal judge, deputy prosecuting attorney, assistant attorney general, or city attorney shall be eligible to receive retirement benefits provided by this subsection.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, then he or she shall receive retirement pay for and during the remainder of his or her natural life in an amount, approved by the governing body or governing bodies, equal to not less than thirty-five percent (35%) nor more than fifty percent (50%) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(3) Any municipal judge who retires under this subsection shall be entitled to continue to participate in and be covered by the city/county health insurance program.

(h) (1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any person who has sixteen (16) or more years of public service, with not less than twelve (12) years as municipal judge and at least four (4) years of other public service as a state trooper, as deputy prosecuting attorney, and with active duty in the military aggregated together for a total of sixteen (16) years or more at public service, shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

(1) Upon the approval of the governing body of the municipality and of the county quorum court, if county funds are used to partially pay the salary of the judge of the municipal court, any person who has sixteen (16) or more years of public service, with not less than twelve (12) years as municipal judge and at least four (4) years of other public service as a state trooper, as deputy prosecuting attorney, and with active duty in the military aggregated together for a total of sixteen (16) years or more at public service, shall be eligible to receive retirement benefits provided by this subchapter.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(3) If incapacitating illness or disability should occur during the final term for qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section.

(4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

(i) (1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, if county funds are used to partially pay the salary of the judge of the municipal court, any person who at fifty (50) years of age has sixteen (16) years of service, with not less than eight (8) years as municipal judge and at least six (6) years as a prosecuting attorney or deputy prosecuting attorney and two (2) years with any state agency for a total of sixteen (16) years, shall be eligible to receive retirement benefits provided by this subchapter. (2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office. (3) If incapacitating illness or disability should occur during the final term of qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section. (4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

(1) Upon the approval of a majority of the city council or board of directors of a city of the first class or a city of the second class and the approval of the quorum court of the county, if county funds are used to partially pay the salary of the judge of the municipal court, any person who at fifty (50) years of age has sixteen (16) years of service, with not less than eight (8) years as municipal judge and at least six (6) years as a prosecuting attorney or deputy prosecuting attorney and two (2) years with any state agency for a total of sixteen (16) years, shall be eligible to receive retirement benefits provided by this subchapter.

(2) If the judge resigns, retires from office, or is succeeded in office by another judge, he or she shall receive retirement benefits for and during the remainder of his or her natural life in an amount equal to one-half (½) of the salary payable to him or her at the time of his or her resignation, retirement, or succession in office.

(3) If incapacitating illness or disability should occur during the final term of qualification under these provisions, then the judge so elected shall be eligible to retire at one-half (½) pay as provided in this section.

(4) In addition thereto, the surviving spouse of the qualifying judge shall be entitled to the benefits provided in this subchapter until his or her death or remarriage.

Acts 1973, No. 432, § 3; 1975, No. 392, § 1; 1977, No. 939, § 1; A.S.A. 1947, § 22-916; Acts 1993, No. 239, § 1; 1995, No. 792, § 1; 1997, No. 1322, § 1; 2001, No. 1613, § 1.
Ark. Code Ann. § 24-7-506 — AR Code / Title 24 / Chapter 7 / Subchapter 5 / Section 24-7-506
Outsourcing - Election to participate - Definitions
Status: in_force

(a) As used in this section: (1) (A) "Covered employer" means any public school, public educational agency, or other eligible employer participating in the Arkansas Teacher Retirement System. (B) "Covered employer" does not include a: (i) Nonmandatory employer or a PSHE employer as defined under § 24-7-1602 ; or (ii) Covered employer that reports through the Arkansas Administrative Statewide Information System; (2) (A) "Embedded employee" means a person who: (i) Provides an outsourced service on the premises of a covered employer; and (ii) Is employed and paid by an outsource contractor. (B) "Embedded employee" does not include a person who is employed by: (i) A covered employer listed under § 24-7-202 ; or (ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing; (3) "Outsource" or "outsourcing" means the use of a contractor by a covered employer for the performance of a service common to the normal daily operation on the premises of the covered employer; (4) "Outsource contractor" means a person who is contractually obligated under an outsourcing agreement to provide a covered employer with a service common to the normal daily operation of the covered employer; (5) "Participating employer" means a covered employer that outsources and opts for the embedded employees of all of the covered employer's outsource contractors to become members of the Arkansas Teacher Retirement System; (6) (A) "School nursing" means a nursing service that is required to be offered in a public school under § 6-18-706 or the Standards for Accreditation of Arkansas Public Schools and School Districts. (B) "School nursing" does not include nursing services provided by a: (i) School-based health clinic under § 6-18-703 ; (ii) Medical clinic operated on a public school campus by a hospital or physician's office that is under contract with the public school; (iii) Healthcare provider other than a nurse; or (iv) Healthcare service reimbursed or paid for by Medicaid, Medicare, health insurance, or any other third-party payer; (7) "Service common to the normal daily operation" means and is limited to a service that: (A) Is provided by an outsource contractor or embedded employee to a covered employer; (B) Is physically provided or based on the premises of a covered employer; (C) Is paid for with public funds and not with private grant funds; and (D) Consists of one (1) or more of the following: (i) The maintenance and operation of: (a) One (1) or more vehicles used for the regular and daily transport of passengers; and (b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section; (ii) The maintenance and operation of a cafeteria or other food service operation; (iii) Custodial or maintenance services for the regular and continuous maintenance, repair, and upkeep of grounds or facilities; (iv) Security services that are not covered by another retirement system; (v) School nursing; (vi) Substitute teaching; or (vii) Service as a teacher's aide; and (8) "Surcharge employer" means a covered employer that outsources and pays a surcharge to the Arkansas Teacher Retirement System. (b) A covered employer that enters into an agreement to outsource a service common to the normal daily operation shall become a surcharge employer within sixty (60) days of the outsourcing agreement. (c) (1) A surcharge employer shall account for and remit to the Arkansas Teacher Retirement System a surcharge of no more than four percent (4%) on the total salaries paid to all the embedded employees on an aggregate basis. (2) The Board of Trustees of the Arkansas Teacher Retirement System may establish by resolution the surcharge rate for any fiscal year following the 2022 fiscal year. (3) A surcharge adopted by the board applies to an entire fiscal year and shall be adopted before the beginning of the fiscal year. (d) (1) The Arkansas Teacher Retirement System may require a surcharge employer to provide any documentation necessary to collect and account for the surcharge as is consistent with the covered employer's election. (2) The Arkansas Teacher Retirement System shall collect an unremitted surcharge amount due, including interest, from a surcharge employer under § 24-7-401 or contribution due from a participating employer under § 24-7-406 in any manner allowed by law. (3) If a surcharge employer reasonably accepts a written statement from an outsource contractor reporting the salaries paid by the outsource contractor to embedded employees for services common to the normal daily operation of the surcharge employer, it shall be conclusively presumed that the written statement accurately reflects the salaries subject to surcharge under this section. (e) (1) The Division of Youth Services education system shall be a participating employer and may designate any or all of its embedded employees as eligible for membership in the Arkansas Teacher Retirement System. (2) An embedded employee of a contractor for the Division of Youth Services education system who becomes a member of the Arkansas Teacher Retirement System shall remain a member of the Arkansas Teacher Retirement System as long as the member remains an embedded employee of a contractor for the Division of Youth Services education system. (f) The use of the terms "employee" and "employer" in this section does not: (1) Create or modify an employment relationship between an embedded employee and a covered employer; (2) Create, permit, expand, or modify any liability or obligation by a covered employer to an embedded employee; or (3) Create, permit, expand, or modify any cause of action by an embedded employee against a covered employer under any employment, labor, civil rights, or other law. (g) The board may promulgate rules to implement this section. Amended by Act 2023, No. 64,§ 1, eff. 7/1/2023. Added by Act 2017, No. 575,§ 2, eff. 8/1/2017.

(a) As used in this section: (1) (A) "Covered employer" means any public school, public educational agency, or other eligible employer participating in the Arkansas Teacher Retirement System. (B) "Covered employer" does not include a: (i) Nonmandatory employer or a PSHE employer as defined under § 24-7-1602 ; or (ii) Covered employer that reports through the Arkansas Administrative Statewide Information System; (2) (A) "Embedded employee" means a person who: (i) Provides an outsourced service on the premises of a covered employer; and (ii) Is employed and paid by an outsource contractor. (B) "Embedded employee" does not include a person who is employed by: (i) A covered employer listed under § 24-7-202 ; or (ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing; (3) "Outsource" or "outsourcing" means the use of a contractor by a covered employer for the performance of a service common to the normal daily operation on the premises of the covered employer; (4) "Outsource contractor" means a person who is contractually obligated under an outsourcing agreement to provide a covered employer with a service common to the normal daily operation of the covered employer; (5) "Participating employer" means a covered employer that outsources and opts for the embedded employees of all of the covered employer's outsource contractors to become members of the Arkansas Teacher Retirement System; (6) (A) "School nursing" means a nursing service that is required to be offered in a public school under § 6-18-706 or the Standards for Accreditation of Arkansas Public Schools and School Districts. (B) "School nursing" does not include nursing services provided by a: (i) School-based health clinic under § 6-18-703 ; (ii) Medical clinic operated on a public school campus by a hospital or physician's office that is under contract with the public school; (iii) Healthcare provider other than a nurse; or (iv) Healthcare service reimbursed or paid for by Medicaid, Medicare, health insurance, or any other third-party payer; (7) "Service common to the normal daily operation" means and is limited to a service that: (A) Is provided by an outsource contractor or embedded employee to a covered employer; (B) Is physically provided or based on the premises of a covered employer; (C) Is paid for with public funds and not with private grant funds; and (D) Consists of one (1) or more of the following: (i) The maintenance and operation of: (a) One (1) or more vehicles used for the regular and daily transport of passengers; and (b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section; (ii) The maintenance and operation of a cafeteria or other food service operation; (iii) Custodial or maintenance services for the regular and continuous maintenance, repair, and upkeep of grounds or facilities; (iv) Security services that are not covered by another retirement system; (v) School nursing; (vi) Substitute teaching; or (vii) Service as a teacher's aide; and (8) "Surcharge employer" means a covered employer that outsources and pays a surcharge to the Arkansas Teacher Retirement System.

(1) (A) "Covered employer" means any public school, public educational agency, or other eligible employer participating in the Arkansas Teacher Retirement System. (B) "Covered employer" does not include a: (i) Nonmandatory employer or a PSHE employer as defined under § 24-7-1602 ; or (ii) Covered employer that reports through the Arkansas Administrative Statewide Information System;

(A) "Covered employer" means any public school, public educational agency, or other eligible employer participating in the Arkansas Teacher Retirement System.

(B) "Covered employer" does not include a: (i) Nonmandatory employer or a PSHE employer as defined under § 24-7-1602 ; or (ii) Covered employer that reports through the Arkansas Administrative Statewide Information System;

(i) Nonmandatory employer or a PSHE employer as defined under § 24-7-1602 ; or

(ii) Covered employer that reports through the Arkansas Administrative Statewide Information System;

(2) (A) "Embedded employee" means a person who: (i) Provides an outsourced service on the premises of a covered employer; and (ii) Is employed and paid by an outsource contractor. (B) "Embedded employee" does not include a person who is employed by: (i) A covered employer listed under § 24-7-202 ; or (ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing;

(A) "Embedded employee" means a person who: (i) Provides an outsourced service on the premises of a covered employer; and (ii) Is employed and paid by an outsource contractor.

(i) Provides an outsourced service on the premises of a covered employer; and

(ii) Is employed and paid by an outsource contractor.

(B) "Embedded employee" does not include a person who is employed by: (i) A covered employer listed under § 24-7-202 ; or (ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing;

(i) A covered employer listed under § 24-7-202 ; or

(ii) An employer that offers the Arkansas Teacher Retirement System as an optional retirement plan as of the date of outsourcing;

(3) "Outsource" or "outsourcing" means the use of a contractor by a covered employer for the performance of a service common to the normal daily operation on the premises of the covered employer;

(4) "Outsource contractor" means a person who is contractually obligated under an outsourcing agreement to provide a covered employer with a service common to the normal daily operation of the covered employer;

(5) "Participating employer" means a covered employer that outsources and opts for the embedded employees of all of the covered employer's outsource contractors to become members of the Arkansas Teacher Retirement System;

(6) (A) "School nursing" means a nursing service that is required to be offered in a public school under § 6-18-706 or the Standards for Accreditation of Arkansas Public Schools and School Districts. (B) "School nursing" does not include nursing services provided by a: (i) School-based health clinic under § 6-18-703 ; (ii) Medical clinic operated on a public school campus by a hospital or physician's office that is under contract with the public school; (iii) Healthcare provider other than a nurse; or (iv) Healthcare service reimbursed or paid for by Medicaid, Medicare, health insurance, or any other third-party payer;

(A) "School nursing" means a nursing service that is required to be offered in a public school under § 6-18-706 or the Standards for Accreditation of Arkansas Public Schools and School Districts.

(B) "School nursing" does not include nursing services provided by a: (i) School-based health clinic under § 6-18-703 ; (ii) Medical clinic operated on a public school campus by a hospital or physician's office that is under contract with the public school; (iii) Healthcare provider other than a nurse; or (iv) Healthcare service reimbursed or paid for by Medicaid, Medicare, health insurance, or any other third-party payer;

(i) School-based health clinic under § 6-18-703 ;

(ii) Medical clinic operated on a public school campus by a hospital or physician's office that is under contract with the public school;

(iii) Healthcare provider other than a nurse; or

(iv) Healthcare service reimbursed or paid for by Medicaid, Medicare, health insurance, or any other third-party payer;

(7) "Service common to the normal daily operation" means and is limited to a service that: (A) Is provided by an outsource contractor or embedded employee to a covered employer; (B) Is physically provided or based on the premises of a covered employer; (C) Is paid for with public funds and not with private grant funds; and (D) Consists of one (1) or more of the following: (i) The maintenance and operation of: (a) One (1) or more vehicles used for the regular and daily transport of passengers; and (b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section; (ii) The maintenance and operation of a cafeteria or other food service operation; (iii) Custodial or maintenance services for the regular and continuous maintenance, repair, and upkeep of grounds or facilities; (iv) Security services that are not covered by another retirement system; (v) School nursing; (vi) Substitute teaching; or (vii) Service as a teacher's aide; and

(A) Is provided by an outsource contractor or embedded employee to a covered employer;

(B) Is physically provided or based on the premises of a covered employer;

(C) Is paid for with public funds and not with private grant funds; and

(D) Consists of one (1) or more of the following: (i) The maintenance and operation of: (a) One (1) or more vehicles used for the regular and daily transport of passengers; and (b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section; (ii) The maintenance and operation of a cafeteria or other food service operation; (iii) Custodial or maintenance services for the regular and continuous maintenance, repair, and upkeep of grounds or facilities; (iv) Security services that are not covered by another retirement system; (v) School nursing; (vi) Substitute teaching; or (vii) Service as a teacher's aide; and

(i) The maintenance and operation of: (a) One (1) or more vehicles used for the regular and daily transport of passengers; and (b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section;

(a) One (1) or more vehicles used for the regular and daily transport of passengers; and

(b) A facility that provides support for the maintenance and operation of one (1) or more vehicles described under subdivision (a)(7)(D)(i) (a) of this section;

(ii) The maintenance and operation of a cafeteria or other food service operation;

(iii) Custodial or maintenance services for the regular and continuous maintenance, repair, and upkeep of grounds or facilities;

(iv) Security services that are not covered by another retirement system;

(v) School nursing;

(vi) Substitute teaching; or

(vii) Service as a teacher's aide; and

(8) "Surcharge employer" means a covered employer that outsources and pays a surcharge to the Arkansas Teacher Retirement System.

(b) A covered employer that enters into an agreement to outsource a service common to the normal daily operation shall become a surcharge employer within sixty (60) days of the outsourcing agreement.

(c) (1) A surcharge employer shall account for and remit to the Arkansas Teacher Retirement System a surcharge of no more than four percent (4%) on the total salaries paid to all the embedded employees on an aggregate basis. (2) The Board of Trustees of the Arkansas Teacher Retirement System may establish by resolution the surcharge rate for any fiscal year following the 2022 fiscal year. (3) A surcharge adopted by the board applies to an entire fiscal year and shall be adopted before the beginning of the fiscal year.

(1) A surcharge employer shall account for and remit to the Arkansas Teacher Retirement System a surcharge of no more than four percent (4%) on the total salaries paid to all the embedded employees on an aggregate basis.

(2) The Board of Trustees of the Arkansas Teacher Retirement System may establish by resolution the surcharge rate for any fiscal year following the 2022 fiscal year.

(3) A surcharge adopted by the board applies to an entire fiscal year and shall be adopted before the beginning of the fiscal year.

(d) (1) The Arkansas Teacher Retirement System may require a surcharge employer to provide any documentation necessary to collect and account for the surcharge as is consistent with the covered employer's election. (2) The Arkansas Teacher Retirement System shall collect an unremitted surcharge amount due, including interest, from a surcharge employer under § 24-7-401 or contribution due from a participating employer under § 24-7-406 in any manner allowed by law. (3) If a surcharge employer reasonably accepts a written statement from an outsource contractor reporting the salaries paid by the outsource contractor to embedded employees for services common to the normal daily operation of the surcharge employer, it shall be conclusively presumed that the written statement accurately reflects the salaries subject to surcharge under this section.

(1) The Arkansas Teacher Retirement System may require a surcharge employer to provide any documentation necessary to collect and account for the surcharge as is consistent with the covered employer's election.

(2) The Arkansas Teacher Retirement System shall collect an unremitted surcharge amount due, including interest, from a surcharge employer under § 24-7-401 or contribution due from a participating employer under § 24-7-406 in any manner allowed by law.

(3) If a surcharge employer reasonably accepts a written statement from an outsource contractor reporting the salaries paid by the outsource contractor to embedded employees for services common to the normal daily operation of the surcharge employer, it shall be conclusively presumed that the written statement accurately reflects the salaries subject to surcharge under this section.

(e) (1) The Division of Youth Services education system shall be a participating employer and may designate any or all of its embedded employees as eligible for membership in the Arkansas Teacher Retirement System. (2) An embedded employee of a contractor for the Division of Youth Services education system who becomes a member of the Arkansas Teacher Retirement System shall remain a member of the Arkansas Teacher Retirement System as long as the member remains an embedded employee of a contractor for the Division of Youth Services education system.

(1) The Division of Youth Services education system shall be a participating employer and may designate any or all of its embedded employees as eligible for membership in the Arkansas Teacher Retirement System.

(2) An embedded employee of a contractor for the Division of Youth Services education system who becomes a member of the Arkansas Teacher Retirement System shall remain a member of the Arkansas Teacher Retirement System as long as the member remains an embedded employee of a contractor for the Division of Youth Services education system.

(f) The use of the terms "employee" and "employer" in this section does not: (1) Create or modify an employment relationship between an embedded employee and a covered employer; (2) Create, permit, expand, or modify any liability or obligation by a covered employer to an embedded employee; or (3) Create, permit, expand, or modify any cause of action by an embedded employee against a covered employer under any employment, labor, civil rights, or other law.

(1) Create or modify an employment relationship between an embedded employee and a covered employer;

(2) Create, permit, expand, or modify any liability or obligation by a covered employer to an embedded employee; or

(3) Create, permit, expand, or modify any cause of action by an embedded employee against a covered employer under any employment, labor, civil rights, or other law.

(g) The board may promulgate rules to implement this section.

Amended by Act 2023, No. 64,§ 1, eff. 7/1/2023.

Added by Act 2017, No. 575,§ 2, eff. 8/1/2017.
Ark. Code Ann. § 24-12-203 — AR Code / Title 24 / Chapter 12 / Subchapter 2 / Section 24-12-203
Immunity - Jurisdiction
Status: in_force

(a) Trustees who comply with the requirements of § 24-2-618(a) are not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated. (b) By accepting the delegation of a trust function from the trustees of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state. Acts 1999, No. 50, § 3; 1999, No. 332, § 3.

(a) Trustees who comply with the requirements of § 24-2-618(a) are not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.

(b) By accepting the delegation of a trust function from the trustees of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.

Acts 1999, No. 50, § 3; 1999, No. 332, § 3.
Ark. Code Ann. § 24-7-1101 — AR Code / Title 24 / Chapter 7 / Subchapter 11 / Section 24-7-1101
Membership in Arkansas Public Employees' Retirement System
Status: in_force

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System is directed to include within the membership of the Arkansas Public Employees' Retirement System, as created by § 24-4-103 , all nonteaching employees of the public schools of this state who are not members of, or eligible for membership in, some other existing state-supported retirement system other than Social Security. (b) (1) The board shall establish a Division of Nonteaching Public School Employees in the Arkansas Public Employees' Retirement System Fund which shall be maintained and operated in the same manner as the State Division, the County Division, and the Municipal Division of the fund. (2) The several school districts of the state, as participating public employers, shall pay into the fund such sums of money as are necessary to match the contributions of its nonteaching employees in the same form and manner and subject to all the provisions of §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 to the same extent as other participating employers. (c) (1) The effective date of membership of the employees in the Arkansas Public Employees' Retirement System shall be October 1, 1965. (2) All employees enrolled in the system shall be subject to the rights, privileges, and limitations prescribed in §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 . (3) Every employee shall become a member of the system as a condition of continuing or obtaining employment. (d) Any employee included within the membership of the retirement system pursuant to this section shall be given credit for service rendered prior to October 1, 1957, as an employee of a public employer, as defined in § 24-4-101 , or as a nonteaching employee of any public school of this state, if the employee was so employed on October 1, 1957, and on October 1, 1965. (e) (1) (A) Any employee included within the membership of the retirement system who was a nonteaching employee of the public schools in this state on October 1, 1965, or who was an employee of one (1) of the institutions of higher learning and who became a member on July 1, 1963, may apply for and receive current service credit in multiples of one (1) year for service rendered from October 1, 1957, to October 1, 1965, in the case of a nonteaching employee of the public schools of this state, or, in the case of an employee of one (1) of the institutions of higher learning, for service rendered as an employee of the institution from July 1, 1957, to July 1, 1963. (B) The employee may receive service credit only if the employee pays to the fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer, that would have been paid had the employee been a member of the retirement system during that time, together with interest at three percent (3%) per annum compounded annually, from October 1, 1965, to the date of payment in the case of a nonteaching employee of the public schools, or, in the case of an employee of one (1) of the institutions of higher learning, from July 1, 1957, to the date of payment. (2) The contributions shall have been paid in full on or before January 1, 1972. (f) In no case shall less than ten (10) days of service in any calendar month rendered by any member mentioned in this section be credited as a month of service, nor shall less than nine (9) months of service rendered in any one (1) fiscal school year be credited as a year of service. Acts 1965, No. 63, §§ 1-5; 1967, No. 63, § 1; 1971, No. 438, § 1; A.S.A. 1947, §§ 12-2542 -- 12-2546.

(a) The Board of Trustees of the Arkansas Public Employees' Retirement System is directed to include within the membership of the Arkansas Public Employees' Retirement System, as created by § 24-4-103 , all nonteaching employees of the public schools of this state who are not members of, or eligible for membership in, some other existing state-supported retirement system other than Social Security.

(b) (1) The board shall establish a Division of Nonteaching Public School Employees in the Arkansas Public Employees' Retirement System Fund which shall be maintained and operated in the same manner as the State Division, the County Division, and the Municipal Division of the fund. (2) The several school districts of the state, as participating public employers, shall pay into the fund such sums of money as are necessary to match the contributions of its nonteaching employees in the same form and manner and subject to all the provisions of §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 to the same extent as other participating employers.

(1) The board shall establish a Division of Nonteaching Public School Employees in the Arkansas Public Employees' Retirement System Fund which shall be maintained and operated in the same manner as the State Division, the County Division, and the Municipal Division of the fund.

(2) The several school districts of the state, as participating public employers, shall pay into the fund such sums of money as are necessary to match the contributions of its nonteaching employees in the same form and manner and subject to all the provisions of §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 to the same extent as other participating employers.

(c) (1) The effective date of membership of the employees in the Arkansas Public Employees' Retirement System shall be October 1, 1965. (2) All employees enrolled in the system shall be subject to the rights, privileges, and limitations prescribed in §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 . (3) Every employee shall become a member of the system as a condition of continuing or obtaining employment.

(1) The effective date of membership of the employees in the Arkansas Public Employees' Retirement System shall be October 1, 1965.

(2) All employees enrolled in the system shall be subject to the rights, privileges, and limitations prescribed in §§ 24-4-101 - 24-4-105 , 24-4-201 , 24-4-202 , 24-4-205 , 24-4-207 - 24-4-209 , 24-4-301 - 24-4-304 , 24-4-401 , 24-4-402 , 24-4-507 , 24-4-508 , 24-4-510 - 24-4-512 , 24-4-513 [repealed], 24-4-601 - 24-4-603 , 24-4-605 , and 24-4-606 .

(3) Every employee shall become a member of the system as a condition of continuing or obtaining employment.

(d) Any employee included within the membership of the retirement system pursuant to this section shall be given credit for service rendered prior to October 1, 1957, as an employee of a public employer, as defined in § 24-4-101 , or as a nonteaching employee of any public school of this state, if the employee was so employed on October 1, 1957, and on October 1, 1965.

(e) (1) (A) Any employee included within the membership of the retirement system who was a nonteaching employee of the public schools in this state on October 1, 1965, or who was an employee of one (1) of the institutions of higher learning and who became a member on July 1, 1963, may apply for and receive current service credit in multiples of one (1) year for service rendered from October 1, 1957, to October 1, 1965, in the case of a nonteaching employee of the public schools of this state, or, in the case of an employee of one (1) of the institutions of higher learning, for service rendered as an employee of the institution from July 1, 1957, to July 1, 1963. (B) The employee may receive service credit only if the employee pays to the fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer, that would have been paid had the employee been a member of the retirement system during that time, together with interest at three percent (3%) per annum compounded annually, from October 1, 1965, to the date of payment in the case of a nonteaching employee of the public schools, or, in the case of an employee of one (1) of the institutions of higher learning, from July 1, 1957, to the date of payment. (2) The contributions shall have been paid in full on or before January 1, 1972.

(1) (A) Any employee included within the membership of the retirement system who was a nonteaching employee of the public schools in this state on October 1, 1965, or who was an employee of one (1) of the institutions of higher learning and who became a member on July 1, 1963, may apply for and receive current service credit in multiples of one (1) year for service rendered from October 1, 1957, to October 1, 1965, in the case of a nonteaching employee of the public schools of this state, or, in the case of an employee of one (1) of the institutions of higher learning, for service rendered as an employee of the institution from July 1, 1957, to July 1, 1963. (B) The employee may receive service credit only if the employee pays to the fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer, that would have been paid had the employee been a member of the retirement system during that time, together with interest at three percent (3%) per annum compounded annually, from October 1, 1965, to the date of payment in the case of a nonteaching employee of the public schools, or, in the case of an employee of one (1) of the institutions of higher learning, from July 1, 1957, to the date of payment.

(A) Any employee included within the membership of the retirement system who was a nonteaching employee of the public schools in this state on October 1, 1965, or who was an employee of one (1) of the institutions of higher learning and who became a member on July 1, 1963, may apply for and receive current service credit in multiples of one (1) year for service rendered from October 1, 1957, to October 1, 1965, in the case of a nonteaching employee of the public schools of this state, or, in the case of an employee of one (1) of the institutions of higher learning, for service rendered as an employee of the institution from July 1, 1957, to July 1, 1963.

(B) The employee may receive service credit only if the employee pays to the fund all necessary contributions, at the rate of four percent (4%) for the employee and four percent (4%) for the employer, that would have been paid had the employee been a member of the retirement system during that time, together with interest at three percent (3%) per annum compounded annually, from October 1, 1965, to the date of payment in the case of a nonteaching employee of the public schools, or, in the case of an employee of one (1) of the institutions of higher learning, from July 1, 1957, to the date of payment.

(2) The contributions shall have been paid in full on or before January 1, 1972.

(f) In no case shall less than ten (10) days of service in any calendar month rendered by any member mentioned in this section be credited as a month of service, nor shall less than nine (9) months of service rendered in any one (1) fiscal school year be credited as a year of service.

Acts 1965, No. 63, §§ 1-5; 1967, No. 63, § 1; 1971, No. 438, § 1; A.S.A. 1947, §§ 12-2542 -- 12-2546.
Ark. Code Ann. § 24-4-606 — AR Code / Title 24 / Chapter 4 / Subchapter 6 / Section 24-4-606
Annuity options
Status: in_force

(a) A member may elect to receive his or her annuity as a straight life annuity or elect to have that annuity reduced and designate a beneficiary in writing and file the election with the Arkansas Public Employees' Retirement System before that annuity starting date under one (1) of the following options: (1) Option A60 - 60 Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-eight percent (98%) of the straight life annuity; (2) Option A120 - 120 Months Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-four percent (94%) of the straight life annuity; (3) Option B50 - Fifty Percent (50%) Survivor Beneficiary Annuity. (A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-eight percent (88%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%), for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half of one percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or (4) Option B75 - Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A) (i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively. (b) (1) (A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file with the system upon: (i) The death, divorce, or other marriage dissolution from the member's spouse; or (ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under subsection (a) of this section. (B) The member's election under this subsection shall return the retirant to his or her straight life, or the member may elect the Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election. (2) (A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse if the election is: (i) Submitted on a form approved by the system; and (ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date. (B) The election shall be effective the first day of the month following the receipt of the notice. (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) The surviving spouse of a member of the system who retired on or after February 1, 1991, and who elected a straight life annuity shall be entitled to receive a survivor's annuity equal to the amount that would have been received had the member elected Option B75, provided: (1) The member dies within twelve (12) months of the effective date of retirement; and (2) The surviving spouse makes application to the system within twelve (12) months of the date of the member's death. Amended by Act 2023, No. 247,§ 1, eff. 7/1/2023. Amended by Act 2019, No. 625,§ 2, eff. 7/24/2019, applicable retroactively to 1/1/2017. Amended by Act 2019, No. 625,§ 1, eff. 7/24/2019, applicable retroactively to 1/1/2017. Acts 1957, No. 177, § 11; 1967, No. 108, § 4; 1979, No. 715, § 2; A.S.A. 1947, § 12-2511; Acts 1993, No. 973, § 1; 1993, No. 1200, § 2; 2001, No. 151, § 32; 2001, No. 438, §§ 1, 2; 2005, No. 383, § 1.

(a) A member may elect to receive his or her annuity as a straight life annuity or elect to have that annuity reduced and designate a beneficiary in writing and file the election with the Arkansas Public Employees' Retirement System before that annuity starting date under one (1) of the following options: (1) Option A60 - 60 Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-eight percent (98%) of the straight life annuity; (2) Option A120 - 120 Months Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-four percent (94%) of the straight life annuity; (3) Option B50 - Fifty Percent (50%) Survivor Beneficiary Annuity. (A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-eight percent (88%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%), for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half of one percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or (4) Option B75 - Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A) (i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively.

(1) Option A60 - 60 Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-eight percent (98%) of the straight life annuity;

(A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary.

(B) The reduced annuity shall be ninety-eight percent (98%) of the straight life annuity;

(2) Option A120 - 120 Months Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (B) The reduced annuity shall be ninety-four percent (94%) of the straight life annuity;

(A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated. If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary.

(B) The reduced annuity shall be ninety-four percent (94%) of the straight life annuity;

(3) Option B50 - Fifty Percent (50%) Survivor Beneficiary Annuity. (A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-eight percent (88%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%), for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half of one percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or

(A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated.

(ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or

(b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(B) The reduced annuity to the retirant shall be eighty-eight percent (88%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%), for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half of one percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age.

(C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or

(4) Option B75 - Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A) (i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively.

(A) (i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of, and paid to such person as the retirant has designated.

(ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or

(b) A dependent child forty (40) years of age or older who is claimed as a dependent on the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date.

(B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age.

(C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively.

(b) (1) (A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file with the system upon: (i) The death, divorce, or other marriage dissolution from the member's spouse; or (ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under subsection (a) of this section. (B) The member's election under this subsection shall return the retirant to his or her straight life, or the member may elect the Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election. (2) (A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse if the election is: (i) Submitted on a form approved by the system; and (ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date. (B) The election shall be effective the first day of the month following the receipt of the notice.

(1) (A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file with the system upon: (i) The death, divorce, or other marriage dissolution from the member's spouse; or (ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under subsection (a) of this section. (B) The member's election under this subsection shall return the retirant to his or her straight life, or the member may elect the Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election.

(A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file with the system upon: (i) The death, divorce, or other marriage dissolution from the member's spouse; or (ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under subsection (a) of this section.

(i) The death, divorce, or other marriage dissolution from the member's spouse; or

(ii) The death of the member's dependent child forty (40) years of age or older who has been designated as a beneficiary under subsection (a) of this section.

(B) The member's election under this subsection shall return the retirant to his or her straight life, or the member may elect the Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election.

(2) (A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse if the election is: (i) Submitted on a form approved by the system; and (ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date. (B) The election shall be effective the first day of the month following the receipt of the notice.

(A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse if the election is: (i) Submitted on a form approved by the system; and (ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date.

(i) Submitted on a form approved by the system; and

(ii) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date.

(B) The election shall be effective the first day of the month following the receipt of the notice.

(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) The surviving spouse of a member of the system who retired on or after February 1, 1991, and who elected a straight life annuity shall be entitled to receive a survivor's annuity equal to the amount that would have been received had the member elected Option B75, provided: (1) The member dies within twelve (12) months of the effective date of retirement; and (2) The surviving spouse makes application to the system within twelve (12) months of the date of the member's death.

(1) The member dies within twelve (12) months of the effective date of retirement; and

(2) The surviving spouse makes application to the system within twelve (12) months of the date of the member's death.

Amended by Act 2023, No. 247,§ 1, eff. 7/1/2023.

Amended by Act 2019, No. 625,§ 2, eff. 7/24/2019, applicable retroactively to 1/1/2017.

Amended by Act 2019, No. 625,§ 1, eff. 7/24/2019, applicable retroactively to 1/1/2017.

Acts 1957, No. 177, § 11; 1967, No. 108, § 4; 1979, No. 715, § 2; A.S.A. 1947, § 12-2511; Acts 1993, No. 973, § 1; 1993, No. 1200, § 2; 2001, No. 151, § 32; 2001, No. 438, §§ 1, 2; 2005, No. 383, § 1.
Ark. Code Ann. § 24-4-210 — AR Code / Title 24 / Chapter 4 / Subchapter 2 / Section 24-4-210
Transfer of funds to cover retired county constitutional officers
Status: in_force

(a) (1) On July 1, 1979, the actuary for the Arkansas Public Employees' Retirement System shall make a determination of the amount necessary to be collected on a monthly basis during the ensuing one hundred twenty (120) months to set up the Retirement Reserve Fund for all persons retired as elected county constitutional officers on July 1, 1978. (2) The amount, as determined by the actuary, shall be certified by the Board of Trustees of the Arkansas Public Employees' Retirement System to the Chief Fiscal Officer of the State. He or she shall in turn cause the amount so certified to be transferred in equal monthly installments from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision. (3) The amounts so certified shall also include regular interest which would have been collected by the system. (b) (1) As additional persons are retired under the provisions of the County Constitutional Officers' Subdivision after July 1, 1978, the retirement reserve amount as determined by the system's actuary shall be certified to the Chief Fiscal Officer of the State by the board. (2) The Chief Fiscal Officer of the State shall then cause the amount so certified to be transferred in one (1) lump sum from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision. Acts 1977, No. 754, § 1; 1977 (Ex. Sess.), No. 14, § 1; 1979, No. 653, § 1; A.S.A. 1947, § 12-2577.1; Acts 1997, No. 299, § 11.

(a) (1) On July 1, 1979, the actuary for the Arkansas Public Employees' Retirement System shall make a determination of the amount necessary to be collected on a monthly basis during the ensuing one hundred twenty (120) months to set up the Retirement Reserve Fund for all persons retired as elected county constitutional officers on July 1, 1978. (2) The amount, as determined by the actuary, shall be certified by the Board of Trustees of the Arkansas Public Employees' Retirement System to the Chief Fiscal Officer of the State. He or she shall in turn cause the amount so certified to be transferred in equal monthly installments from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision. (3) The amounts so certified shall also include regular interest which would have been collected by the system.

(1) On July 1, 1979, the actuary for the Arkansas Public Employees' Retirement System shall make a determination of the amount necessary to be collected on a monthly basis during the ensuing one hundred twenty (120) months to set up the Retirement Reserve Fund for all persons retired as elected county constitutional officers on July 1, 1978.

(2) The amount, as determined by the actuary, shall be certified by the Board of Trustees of the Arkansas Public Employees' Retirement System to the Chief Fiscal Officer of the State. He or she shall in turn cause the amount so certified to be transferred in equal monthly installments from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision.

(3) The amounts so certified shall also include regular interest which would have been collected by the system.

(b) (1) As additional persons are retired under the provisions of the County Constitutional Officers' Subdivision after July 1, 1978, the retirement reserve amount as determined by the system's actuary shall be certified to the Chief Fiscal Officer of the State by the board. (2) The Chief Fiscal Officer of the State shall then cause the amount so certified to be transferred in one (1) lump sum from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision.

(1) As additional persons are retired under the provisions of the County Constitutional Officers' Subdivision after July 1, 1978, the retirement reserve amount as determined by the system's actuary shall be certified to the Chief Fiscal Officer of the State by the board.

(2) The Chief Fiscal Officer of the State shall then cause the amount so certified to be transferred in one (1) lump sum from the County Aid Fund or from any other general revenue fund authorized by law for the purpose, from general revenues allocated thereto to counties, to the Arkansas Public Employees' Retirement System Fund for credit to the County Constitutional Officers' Subdivision.

Acts 1977, No. 754, § 1; 1977 (Ex. Sess.), No. 14, § 1; 1979, No. 653, § 1; A.S.A. 1947, § 12-2577.1; Acts 1997, No. 299, § 11.
Ark. Code Ann. § 24-7-702 — AR Code / Title 24 / Chapter 7 / Subchapter 7 / Section 24-7-702
Early voluntary retirement
Status: in_force

(a) (1) (A) Except as provided under subdivision (a)(2) of this section, an active or inactive member who has a combined total of twenty-five (25) or more years of actual and reciprocal service, including purchased or free credited service, but has not attained sixty (60) years of age and is not eligible for retirement under § 24-7-701 may voluntarily retire early by filing a written application with the Arkansas Teacher Retirement System. (B) If a member fails to submit a complete retirement application by the end of the sixth full calendar month immediately following the effective date of benefits, including all additional documentation required by the Arkansas Teacher Retirement System, the application shall be void unless an extension is granted by the Executive Director of the Arkansas Teacher Retirement System. (2) (A) A member shall meet the termination of covered employment requirements under § 24-7-502 to be eligible for retirement except if the member has attained normal retirement age. (B) A member who fails to meet the termination of covered employment requirements under this subsection shall have his or her retirement benefits cancelled and forfeits any retirement benefits until the termination requirements are met. (C) (i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement. (ii) The system may adjust and collect any benefits that have been overpaid to a member under § 24-7-205 . (D) A member who fails to meet the termination requirements of this section upon employment by a covered employer shall return to active member status under § 24-7-502 . (b) (1) Upon an active or inactive member's retirement as provided in this section, the member shall receive, in lieu of any other system benefit, an early annuity that shall be a certain percent of an annuity provided for in § 24-7-705 . (2) (A) The percent shall be one hundred percent (100%) reduced by between five-twelfths percent (5/12%) and fifteen-twelfths percent (15/12%) multiplied by the number of months by which the time of early retirement precedes the earlier of either completion of twenty-eight (28) years of credited service or attainment of sixty (60) years of age. (B) The board may set by board resolution the early annuity reduction under subdivision (b)(1) of this section at a percentage rate between five percent (5%) per year and fifteen percent (15%) per year, to be prorated monthly, if the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that a reduction in the cost of early voluntary retirement is prudent to maintain actuarial soundness. (3) (A) Effective July 1, 1997, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty-five (35) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been thirty (30) years on the effective date of their retirement. (B) The annuities of those members who chose early retirement from July 1, 1995, through June 30, 1999, who received an early annuity as provided in § 24-7-702 that was in effect at the time of their retirement, shall be adjusted effective July 1, 1999, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section. (C) Effective July 1, 2001, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty (30) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been twenty-eight (28) years on the effective date of their retirement, and the annuities of those members shall be adjusted effective July 1, 2001, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section, which was in effect July 1, 1999. (4) The adjustments described in subdivision (b)(3) of this section shall not be retroactive to the effective date of the member's retirement. (c) For an active member, the annuity shall begin the first day of the calendar month next following the latest of: (1) One (1) month after the date the written application is filed with the board; (2) The member's termination of covered employment; or (3) The member's completion of the required credited service. (d) For an inactive member, the annuity shall begin the first day of the calendar month after the date his or her written application is received by the board. (e) If a member has accrued a full year of service credit for a fiscal year, the annuity shall not begin earlier than on July 1 after the fiscal year ends unless the board adopts by rule or resolution an earlier beginning date for members whose retirement will not result in a reduction of classroom teachers. (f) (1) A member may cancel an application for early voluntary retirement benefits up to two (2) full calendar months after the effective date of benefits. (2) The member shall notify the system of cancellation in writing. Upon cancellation, the member shall be eligible for active membership in the system. Amended by Act 2023, No. 107,§ 34, eff. 7/1/2023. Amended by Act 2023, No. 107,§ 33, eff. 7/1/2023. Amended by Act 2021, No. 279,§ 21, eff. 7/1/2021. Amended by Act 2021, No. 279,§ 20, eff. 7/1/2021. Amended by Act 2021, No. 279,§ 19, eff. 7/1/2021. Amended by Act 2019, No. 595,§ 3, eff. 7/1/2019. Amended by Act 2017, No. 750,§ 1, eff. 3/30/2017. Amended by Act 2017, No. 293,§ 3, eff. 2/28/2017. Amended by Act 2013, No. 720,§ 2, eff. 7/1/2013. Acts 1973, No. 427, § 9; 1975, No. 549, § 9; 1981, No. 365, § 6; 1983, No. 17, § 2; A.S.A. 1947, § 80-1443; Acts 1993, No. 1091, § 3; 1995, No. 282, § 2; 1997, No. 992, § 2; 1997, No. 1074, § 1; 1999, No. 1521, § 1; 2001, No. 461, § 3; 2001, No. 1300, § 1; 2005, No. 385, § 5; 2007, No. 97, § 11; 2009, No. 468, § 16; 2009, No. 743, § 3; 2011, No. 45, §§ 7, 8.

(a) (1) (A) Except as provided under subdivision (a)(2) of this section, an active or inactive member who has a combined total of twenty-five (25) or more years of actual and reciprocal service, including purchased or free credited service, but has not attained sixty (60) years of age and is not eligible for retirement under § 24-7-701 may voluntarily retire early by filing a written application with the Arkansas Teacher Retirement System. (B) If a member fails to submit a complete retirement application by the end of the sixth full calendar month immediately following the effective date of benefits, including all additional documentation required by the Arkansas Teacher Retirement System, the application shall be void unless an extension is granted by the Executive Director of the Arkansas Teacher Retirement System. (2) (A) A member shall meet the termination of covered employment requirements under § 24-7-502 to be eligible for retirement except if the member has attained normal retirement age. (B) A member who fails to meet the termination of covered employment requirements under this subsection shall have his or her retirement benefits cancelled and forfeits any retirement benefits until the termination requirements are met. (C) (i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement. (ii) The system may adjust and collect any benefits that have been overpaid to a member under § 24-7-205 . (D) A member who fails to meet the termination requirements of this section upon employment by a covered employer shall return to active member status under § 24-7-502 .

(1) (A) Except as provided under subdivision (a)(2) of this section, an active or inactive member who has a combined total of twenty-five (25) or more years of actual and reciprocal service, including purchased or free credited service, but has not attained sixty (60) years of age and is not eligible for retirement under § 24-7-701 may voluntarily retire early by filing a written application with the Arkansas Teacher Retirement System. (B) If a member fails to submit a complete retirement application by the end of the sixth full calendar month immediately following the effective date of benefits, including all additional documentation required by the Arkansas Teacher Retirement System, the application shall be void unless an extension is granted by the Executive Director of the Arkansas Teacher Retirement System.

(A) Except as provided under subdivision (a)(2) of this section, an active or inactive member who has a combined total of twenty-five (25) or more years of actual and reciprocal service, including purchased or free credited service, but has not attained sixty (60) years of age and is not eligible for retirement under § 24-7-701 may voluntarily retire early by filing a written application with the Arkansas Teacher Retirement System.

(B) If a member fails to submit a complete retirement application by the end of the sixth full calendar month immediately following the effective date of benefits, including all additional documentation required by the Arkansas Teacher Retirement System, the application shall be void unless an extension is granted by the Executive Director of the Arkansas Teacher Retirement System.

(2) (A) A member shall meet the termination of covered employment requirements under § 24-7-502 to be eligible for retirement except if the member has attained normal retirement age. (B) A member who fails to meet the termination of covered employment requirements under this subsection shall have his or her retirement benefits cancelled and forfeits any retirement benefits until the termination requirements are met. (C) (i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement. (ii) The system may adjust and collect any benefits that have been overpaid to a member under § 24-7-205 . (D) A member who fails to meet the termination requirements of this section upon employment by a covered employer shall return to active member status under § 24-7-502 .

(A) A member shall meet the termination of covered employment requirements under § 24-7-502 to be eligible for retirement except if the member has attained normal retirement age.

(B) A member who fails to meet the termination of covered employment requirements under this subsection shall have his or her retirement benefits cancelled and forfeits any retirement benefits until the termination requirements are met.

(C) (i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement. (ii) The system may adjust and collect any benefits that have been overpaid to a member under § 24-7-205 .

(i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement.

(ii) The system may adjust and collect any benefits that have been overpaid to a member under § 24-7-205 .

(D) A member who fails to meet the termination requirements of this section upon employment by a covered employer shall return to active member status under § 24-7-502 .

(b) (1) Upon an active or inactive member's retirement as provided in this section, the member shall receive, in lieu of any other system benefit, an early annuity that shall be a certain percent of an annuity provided for in § 24-7-705 . (2) (A) The percent shall be one hundred percent (100%) reduced by between five-twelfths percent (5/12%) and fifteen-twelfths percent (15/12%) multiplied by the number of months by which the time of early retirement precedes the earlier of either completion of twenty-eight (28) years of credited service or attainment of sixty (60) years of age. (B) The board may set by board resolution the early annuity reduction under subdivision (b)(1) of this section at a percentage rate between five percent (5%) per year and fifteen percent (15%) per year, to be prorated monthly, if the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that a reduction in the cost of early voluntary retirement is prudent to maintain actuarial soundness. (3) (A) Effective July 1, 1997, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty-five (35) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been thirty (30) years on the effective date of their retirement. (B) The annuities of those members who chose early retirement from July 1, 1995, through June 30, 1999, who received an early annuity as provided in § 24-7-702 that was in effect at the time of their retirement, shall be adjusted effective July 1, 1999, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section. (C) Effective July 1, 2001, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty (30) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been twenty-eight (28) years on the effective date of their retirement, and the annuities of those members shall be adjusted effective July 1, 2001, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section, which was in effect July 1, 1999. (4) The adjustments described in subdivision (b)(3) of this section shall not be retroactive to the effective date of the member's retirement.

(1) Upon an active or inactive member's retirement as provided in this section, the member shall receive, in lieu of any other system benefit, an early annuity that shall be a certain percent of an annuity provided for in § 24-7-705 .

(2) (A) The percent shall be one hundred percent (100%) reduced by between five-twelfths percent (5/12%) and fifteen-twelfths percent (15/12%) multiplied by the number of months by which the time of early retirement precedes the earlier of either completion of twenty-eight (28) years of credited service or attainment of sixty (60) years of age. (B) The board may set by board resolution the early annuity reduction under subdivision (b)(1) of this section at a percentage rate between five percent (5%) per year and fifteen percent (15%) per year, to be prorated monthly, if the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that a reduction in the cost of early voluntary retirement is prudent to maintain actuarial soundness.

(A) The percent shall be one hundred percent (100%) reduced by between five-twelfths percent (5/12%) and fifteen-twelfths percent (15/12%) multiplied by the number of months by which the time of early retirement precedes the earlier of either completion of twenty-eight (28) years of credited service or attainment of sixty (60) years of age.

(B) The board may set by board resolution the early annuity reduction under subdivision (b)(1) of this section at a percentage rate between five percent (5%) per year and fifteen percent (15%) per year, to be prorated monthly, if the: (i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and (ii) Board determines that a reduction in the cost of early voluntary retirement is prudent to maintain actuarial soundness.

(i) System's actuary certifies to the board that the amortization period to pay the unfunded liabilities of the system exceeds eighteen (18) years; and

(ii) Board determines that a reduction in the cost of early voluntary retirement is prudent to maintain actuarial soundness.

(3) (A) Effective July 1, 1997, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty-five (35) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been thirty (30) years on the effective date of their retirement. (B) The annuities of those members who chose early retirement from July 1, 1995, through June 30, 1999, who received an early annuity as provided in § 24-7-702 that was in effect at the time of their retirement, shall be adjusted effective July 1, 1999, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section. (C) Effective July 1, 2001, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty (30) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been twenty-eight (28) years on the effective date of their retirement, and the annuities of those members shall be adjusted effective July 1, 2001, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section, which was in effect July 1, 1999.

(A) Effective July 1, 1997, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty-five (35) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been thirty (30) years on the effective date of their retirement.

(B) The annuities of those members who chose early retirement from July 1, 1995, through June 30, 1999, who received an early annuity as provided in § 24-7-702 that was in effect at the time of their retirement, shall be adjusted effective July 1, 1999, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section.

(C) Effective July 1, 2001, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty (30) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been twenty-eight (28) years on the effective date of their retirement, and the annuities of those members shall be adjusted effective July 1, 2001, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section, which was in effect July 1, 1999.

(4) The adjustments described in subdivision (b)(3) of this section shall not be retroactive to the effective date of the member's retirement.

(c) For an active member, the annuity shall begin the first day of the calendar month next following the latest of: (1) One (1) month after the date the written application is filed with the board; (2) The member's termination of covered employment; or (3) The member's completion of the required credited service.

(1) One (1) month after the date the written application is filed with the board;

(2) The member's termination of covered employment; or

(3) The member's completion of the required credited service.

(d) For an inactive member, the annuity shall begin the first day of the calendar month after the date his or her written application is received by the board.

(e) If a member has accrued a full year of service credit for a fiscal year, the annuity shall not begin earlier than on July 1 after the fiscal year ends unless the board adopts by rule or resolution an earlier beginning date for members whose retirement will not result in a reduction of classroom teachers.

(f) (1) A member may cancel an application for early voluntary retirement benefits up to two (2) full calendar months after the effective date of benefits. (2) The member shall notify the system of cancellation in writing. Upon cancellation, the member shall be eligible for active membership in the system.

(1) A member may cancel an application for early voluntary retirement benefits up to two (2) full calendar months after the effective date of benefits.

(2) The member shall notify the system of cancellation in writing. Upon cancellation, the member shall be eligible for active membership in the system.

Amended by Act 2023, No. 107,§ 34, eff. 7/1/2023.

Amended by Act 2023, No. 107,§ 33, eff. 7/1/2023.

Amended by Act 2021, No. 279,§ 21, eff. 7/1/2021.

Amended by Act 2021, No. 279,§ 20, eff. 7/1/2021.

Amended by Act 2021, No. 279,§ 19, eff. 7/1/2021.

Amended by Act 2019, No. 595,§ 3, eff. 7/1/2019.

Amended by Act 2017, No. 750,§ 1, eff. 3/30/2017.

Amended by Act 2017, No. 293,§ 3, eff. 2/28/2017.

Amended by Act 2013, No. 720,§ 2, eff. 7/1/2013.

Acts 1973, No. 427, § 9; 1975, No. 549, § 9; 1981, No. 365, § 6; 1983, No. 17, § 2; A.S.A. 1947, § 80-1443; Acts 1993, No. 1091, § 3; 1995, No. 282, § 2; 1997, No. 992, § 2; 1997, No. 1074, § 1; 1999, No. 1521, § 1; 2001, No. 461, § 3; 2001, No. 1300, § 1; 2005, No. 385, § 5; 2007, No. 97, § 11; 2009, No. 468, § 16; 2009, No. 743, § 3; 2011, No. 45, §§ 7, 8.
Ark. Code Ann. § 24-8-306 — AR Code / Title 24 / Chapter 8 / Subchapter 3 / Section 24-8-306
Eligibility for benefits - Regular and disability retirement - Surviving spouses' rights
Status: in_force

(a) A judge of a municipal court upon reaching sixty-eight (68) years of age and having served for a minimum of seven (7) years immediately prior to retirement may retire. (b) (1) If incapacitating illness or disability should occur during any term for which a judge has been elected, he or she shall be eligible to retire. (2) The retirement benefits to be paid to the retiree shall be equal to one-half (½) of the salary being paid at the time of retirement for and during his or her natural life. (c) Notice of retirement under any provision of this subchapter shall be in writing and sent to the chair of the board of trustees who, upon finding that the applicant meets the requirements for retirement, shall authorize the secretary of the board to issue vouchers in payment to the applicant in accordance with the provisions of this subchapter for and during the natural life of the applicant. (d) (1) Upon the death of a judge receiving, or eligible to receive, retirement benefits under this subchapter, leaving a surviving spouse, there shall be paid to the surviving spouse for the remainder of his or her natural life, or until he or she remarries, benefits equal to one-half (½) of the retirement benefits which the deceased judge was receiving, or would have been eligible to receive, at the time of his or her death. (2) Upon the death of a judge while serving in that capacity, leaving a surviving spouse who has been married to and living with the judge for at least five (5) years immediately preceding his or her death, that surviving spouse, if not remarried prior thereto, shall, upon reaching fifty (50) years of age, be entitled to and shall receive, until his or her death or remarriage, benefits in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death. (3) (A) Upon the death of a municipal judge, while serving in that capacity, in a county which is authorized by the Arkansas Constitution to have two (2) districts and two (2) county seats, and who has served as a municipal judge of the court for a minimum of fifteen (15) years, leaving a surviving spouse who had been married to, and living with, the judge for at least fifteen (15) years immediately preceding his or her death, the surviving spouse, if not remarried prior thereto, shall, upon reaching forty-seven (47) years of age, be eligible to apply for, and shall receive until his or her death or remarriage, benefits as authorized in this subdivision (d)(3) in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death. (B) This subdivision (d)(3) shall apply to all such municipal judges now serving, or who shall serve in the future, or who have served as such during the five-year period immediately prior to March 5, 1985, who have accumulated fifteen (15) years of service as a municipal judge and who meet the other requirements of this subdivision (d)(3). (C) This subdivision (d)(3) shall not apply to any retirement funds which are administered by the state, nor shall any surviving spouse be entitled to the benefits provided by this subdivision (d)(3) unless the payment of the benefits has been approved by both the governing body of the city wherein the municipal court sits and the quorum court of the county wherein the municipal court sits. Acts 1973, No. 432, § 2; 1977, No. 721, § 1; 1985, No. 265, § 1; A.S.A. 1947, § 22-915.

(a) A judge of a municipal court upon reaching sixty-eight (68) years of age and having served for a minimum of seven (7) years immediately prior to retirement may retire.

(b) (1) If incapacitating illness or disability should occur during any term for which a judge has been elected, he or she shall be eligible to retire. (2) The retirement benefits to be paid to the retiree shall be equal to one-half (½) of the salary being paid at the time of retirement for and during his or her natural life.

(1) If incapacitating illness or disability should occur during any term for which a judge has been elected, he or she shall be eligible to retire.

(2) The retirement benefits to be paid to the retiree shall be equal to one-half (½) of the salary being paid at the time of retirement for and during his or her natural life.

(c) Notice of retirement under any provision of this subchapter shall be in writing and sent to the chair of the board of trustees who, upon finding that the applicant meets the requirements for retirement, shall authorize the secretary of the board to issue vouchers in payment to the applicant in accordance with the provisions of this subchapter for and during the natural life of the applicant.

(d) (1) Upon the death of a judge receiving, or eligible to receive, retirement benefits under this subchapter, leaving a surviving spouse, there shall be paid to the surviving spouse for the remainder of his or her natural life, or until he or she remarries, benefits equal to one-half (½) of the retirement benefits which the deceased judge was receiving, or would have been eligible to receive, at the time of his or her death. (2) Upon the death of a judge while serving in that capacity, leaving a surviving spouse who has been married to and living with the judge for at least five (5) years immediately preceding his or her death, that surviving spouse, if not remarried prior thereto, shall, upon reaching fifty (50) years of age, be entitled to and shall receive, until his or her death or remarriage, benefits in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death. (3) (A) Upon the death of a municipal judge, while serving in that capacity, in a county which is authorized by the Arkansas Constitution to have two (2) districts and two (2) county seats, and who has served as a municipal judge of the court for a minimum of fifteen (15) years, leaving a surviving spouse who had been married to, and living with, the judge for at least fifteen (15) years immediately preceding his or her death, the surviving spouse, if not remarried prior thereto, shall, upon reaching forty-seven (47) years of age, be eligible to apply for, and shall receive until his or her death or remarriage, benefits as authorized in this subdivision (d)(3) in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death. (B) This subdivision (d)(3) shall apply to all such municipal judges now serving, or who shall serve in the future, or who have served as such during the five-year period immediately prior to March 5, 1985, who have accumulated fifteen (15) years of service as a municipal judge and who meet the other requirements of this subdivision (d)(3). (C) This subdivision (d)(3) shall not apply to any retirement funds which are administered by the state, nor shall any surviving spouse be entitled to the benefits provided by this subdivision (d)(3) unless the payment of the benefits has been approved by both the governing body of the city wherein the municipal court sits and the quorum court of the county wherein the municipal court sits.

(1) Upon the death of a judge receiving, or eligible to receive, retirement benefits under this subchapter, leaving a surviving spouse, there shall be paid to the surviving spouse for the remainder of his or her natural life, or until he or she remarries, benefits equal to one-half (½) of the retirement benefits which the deceased judge was receiving, or would have been eligible to receive, at the time of his or her death.

(2) Upon the death of a judge while serving in that capacity, leaving a surviving spouse who has been married to and living with the judge for at least five (5) years immediately preceding his or her death, that surviving spouse, if not remarried prior thereto, shall, upon reaching fifty (50) years of age, be entitled to and shall receive, until his or her death or remarriage, benefits in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death.

(3) (A) Upon the death of a municipal judge, while serving in that capacity, in a county which is authorized by the Arkansas Constitution to have two (2) districts and two (2) county seats, and who has served as a municipal judge of the court for a minimum of fifteen (15) years, leaving a surviving spouse who had been married to, and living with, the judge for at least fifteen (15) years immediately preceding his or her death, the surviving spouse, if not remarried prior thereto, shall, upon reaching forty-seven (47) years of age, be eligible to apply for, and shall receive until his or her death or remarriage, benefits as authorized in this subdivision (d)(3) in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death. (B) This subdivision (d)(3) shall apply to all such municipal judges now serving, or who shall serve in the future, or who have served as such during the five-year period immediately prior to March 5, 1985, who have accumulated fifteen (15) years of service as a municipal judge and who meet the other requirements of this subdivision (d)(3). (C) This subdivision (d)(3) shall not apply to any retirement funds which are administered by the state, nor shall any surviving spouse be entitled to the benefits provided by this subdivision (d)(3) unless the payment of the benefits has been approved by both the governing body of the city wherein the municipal court sits and the quorum court of the county wherein the municipal court sits.

(A) Upon the death of a municipal judge, while serving in that capacity, in a county which is authorized by the Arkansas Constitution to have two (2) districts and two (2) county seats, and who has served as a municipal judge of the court for a minimum of fifteen (15) years, leaving a surviving spouse who had been married to, and living with, the judge for at least fifteen (15) years immediately preceding his or her death, the surviving spouse, if not remarried prior thereto, shall, upon reaching forty-seven (47) years of age, be eligible to apply for, and shall receive until his or her death or remarriage, benefits as authorized in this subdivision (d)(3) in an amount equal to one-half (½) of the retirement benefits to which the deceased judge would have been entitled had he or she been eligible for retirement on the date of his or her death.

(B) This subdivision (d)(3) shall apply to all such municipal judges now serving, or who shall serve in the future, or who have served as such during the five-year period immediately prior to March 5, 1985, who have accumulated fifteen (15) years of service as a municipal judge and who meet the other requirements of this subdivision (d)(3).

(C) This subdivision (d)(3) shall not apply to any retirement funds which are administered by the state, nor shall any surviving spouse be entitled to the benefits provided by this subdivision (d)(3) unless the payment of the benefits has been approved by both the governing body of the city wherein the municipal court sits and the quorum court of the county wherein the municipal court sits.

Acts 1973, No. 432, § 2; 1977, No. 721, § 1; 1985, No. 265, § 1; A.S.A. 1947, § 22-915.