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 24-7-411 - Compelling payment upon delinquency of employer

(a)
(1)
If an employer fails to remit moneys that are required by law or rule to the Arkansas Teacher Retirement System by the date and at the frequency established by the Board of Trustees of the Arkansas Teacher Retirement System, the system shall impose an interest penalty equal to the actuarially assumed rate of return on investments of the Arkansas Teacher Retirement System Fund in the form of interest applied on an annual basis to the moneys due.
(2)
The interest penalty shall be determined by the system on the date the delinquent funds are received, and a statement of the interest penalty shall be sent to the employer.
(3)
If the interest penalty or delinquent moneys are not received by the system by the last business day of the month in which the moneys were originally due, then the system may transfer the sums of moneys, including the interest penalty, from any moneys due the employer from the Treasurer of State and the Department of Education as provided in §
19-5-106(a)(5)
.
(4)
The interest penalty shall be computed on the actual days of delinquency and shall be paid to the system to reimburse the trust fund for the money that would have been earned on the moneys had they been paid when due.
(b)
(1)
If an employer fails to file with the system a report required by the board by the date established by the board, then the system shall impose a penalty of one hundred fifty dollars ($150) for each late report.
(2)
A statement of the penalty shall be sent to the employer.
(3)
If the penalty is not received by the last business day of the month in which the report was due, then the system may transfer the penalty amount from any moneys due the employer from the Treasurer of State and the Department of Education as provided in §
19-5-106(a)(5)
.
(4)
The penalty amounts collected shall be deposited to the credit of the administrative funds of the system to help defray the cost of additional expenses incurred due to the additional work required to process late reports.
(5)
In addition to the late report penalty under subdivision (b)(1) of this section, the system may impose an additional penalty of five hundred dollars ($500) for a report that is filed with the system over one (1) month late.
(c)
The board or its designee may waive penalties and interest for an employer delinquency under this section if the board or its designee finds that:
(1)
The delinquency was not the result of the employer's nondisclosure, fraud, or misrepresentation; and
(2)
Under the circumstances, requiring payment of the delinquency by the employer would be unduly penal, burdensome, or result in a manifest injustice.
(d)
(1)
If an employer fails to remit system contributions and reports required under subsections (a) and (b) of this section, the amount of delinquent funds including contributions, penalties, and interest owed to the system may be deducted from the operating funds designated to the employer through the department and remitted directly by the department to the system's appropriate account for the use and benefits of the members.
(2)
The operating funds from which delinquent funds may be deducted for a public school district or open-enrollment public charter school are limited to:
(A)
State funding distributed under §
6-20-2305
, including without limitation state foundation funding and state categorical funding;
(B)
Federal funding to the extent allowed under federal law; and
(C)
The net assets of an open-enrollment public charter school deemed property of the state upon revocation or nonrenewal of the charter.
(e)
(1)
Beginning on July 1, 2022, the member and employer contributions made by an employer as provided in §§
24-7-401
and
24-7-406
shall be:
(A)
Reported electronically by the employer through the system portal; and
(B)
Paid by the employer through electronic transfer.
(2)
An employer contribution shall be:
(A)
Paid to the system at the time and at the frequency established by the board; and
(B)
Paid concurrently with contributions made by the employees of the employer to the system.
(f)
(1)
An employer shall submit a written request for a temporary waiver to the board by July 1, 2022, when the employer is unable to:
(A)
Report contributions electronically through the system; or
(B)
Pay contributions to the system by electronic transfer.
(2)
A request for a temporary waiver submitted under subdivision (f)(1) of this section shall include a timeline for when the employer will be able to comply with the payment and reporting requirements under this section.
Amended by Act 2021, No. 220,§ 2, eff. 7/28/2021.
Amended by Act 2021, No. 220,§ 1, eff. 7/28/2021.
Amended by Act 2019, No. 315,§ 2886, eff. 7/24/2019.
Amended by Act 2013, No. 448,§ 1, eff. 7/1/2013.
Acts 1973, No. 427, § 8; A.S.A. 1947, § 80-1442; Acts 1993, No. 300, § 1; 2007, No. 97, § 5; 2009, No. 467, § 1.