Source: http://artrs.gov/index2.php?option=com_content&task=view&id=188&pop=1&page=0&Itemid=158
Timestamp: 2014-04-23 09:11:16
Document Index: 422884636

Matched Legal Cases: ['§ 401', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24', '§ 24']

ATRS Plan Features	This section provides a brief explanation of the ATRS plan so you may better understand what types of benefits may be divided in a QDRO. It is not an exhaustive list of all the benefit provisions or options available to the participants. The ATRS plan is a defined benefit plan established by state law for public school and other public education employees in Arkansas. It is administered as a “qualified” government sponsored retirement plan under the provisions of IRS § 401(a). The state statutes contain the benefit provisions for the plan found at Arkansas Code § 24-7-201 et. seq. which are supplemented by ATRS Rules and Regulations. These laws and rules describe retirement benefits available and the conditions under which an ATRS participant or beneficiary is eligible to receive them. Member contributions and accumulated interest – If a participant is in the contributory plan, he or she contributes 6% of his or her salary received from the participating employer, pretax as a payroll deduction to the ATRS plan. Contributions are credited to the member and earn interest at the rate set by the ATRS Board. If the member does not receive a retirement annuity from ATRS, the contributions and accumulated interest are distributable, and a portion may be assigned to the alternate payee in the QDRO. Participant contributions are refundable in two instances, when the participant is no longer working for a participating employer and requests a refund under § 24-7-711 or the participant dies prior to receiving retirement benefits. If member contributions are withdrawn, the participant’s service credit is cancelled and annuity benefits are forfeited. ATRS employer contributions – ATRS employers pay an employer match on the salary paid to ATRS participants. This amount paid by the employer is not credited to the member and is never refunded. Therefore, employer contributions may not be assigned in the QDRO since they are not participant benefits. Accrued benefits – As a participant works for a participating employer, he or she accrues service credit and salary in the plan. Service credit is the length of participation in ATRS. For each 40 days the participant works for the participating employer each year, he or she receives service credit in quarterly (.25) increments. After completing 160 days or more of service in a fiscal year (July 1- June 30), a member will be credited with 1 full year of service. Salary is the total amount of income paid by the participating employer to a participant in a given fiscal year. ATRS uses a participant’s 3 highest salary years to calculate the retirement annuity payable to the participant.
Early retirement – 25 or more years of credited service, regardless of age (ACA § 24-7-701) Age and Service (voluntary) retirement – 28 or more years of credited service, regardless of age (ACA § 24-7-702) Disability benefits – If a participant becomes disabled while working for a participating employer and he or she has five (5) or more years of actual service with ATRS, the participant may apply for disability benefits from ATRS. If approved, ATRS will pay annuity benefits using the same retirement formula described above for retirement annuity benefits. A portion (percentage) or other flat amount of a disability retirement annuity may be assigned to an alternate payee in the QDRO beginning when the participant is approved and begins drawing benefits. If a member receives retirement benefits due to disability and the parties wish to exclude these benefits from an assignment to the alternate payee, this needs to be specified in the QDRO. Otherwise, ATRS will treat disability annuities as accrued retirement benefits when administering the QDRO. (See ACA § 24-7-704)
Survivor benefits – If an “active” participant who has five (5) or more years of actual service with ATRS dies prior to receiving retirement benefits, his or her qualifying survivors will receive mandatory survivor benefits under Arkansas Code § 24-7-710. This includes a spouse married to the participant for at least 2 years at the time of death and any dependent children. The model QDRO provides that if a participant dies and survivor benefits are payable under this plan section, the alternate payee does not receive benefits unless “accumulated contributions and interest” remain after the survivor annuities terminate. If you wish to provide benefits to an alternate payee in a QDRO even if survivor annuities are payable from a participant’s account, then the QDRO must specify that the amounts paid to the dependents must be reduced by the portion of the member’s account assigned to the alternate payee in the QDRO.