Arkansas Administrative Code › Agency 088 - Arkansas Teacher Retirement System › Rule 088.00.05-003 - Conditions Under Which a Retirant May Return to Covered Service Without Rescinding Retirement (10-2-1)

Current through Register Vol. 49, No. 6, June, 2024
AGE AND SERVICE RETIRANT
1. Except for a waiver provided in accordance
		  with Act 30 of 1999 and Act 1146 of 2001, as amended by Act 911 of 2005, if a
		  retirant returns to service - as an employee of a public employer whose
		  employees are covered by ATRS1 -without rescinding
		  his/her retirement under Act 39 of 1989 (A.C.A. §24-7-717), then, for each
		  twelve-month period ending June 30, the amount of his/her System annuity shall
		  be subject to the limitations equivalent to twice the limitations imposed by
		  the Social Security retirement test. The amount a retirant may earn and still
		  collect full benefits depends upon whether he/she has reached "full retirement
		  age (FRA)" as defined in P.L. 106-182.
A.
		  Effective for years ending after December 31, 1999, pursuant to P.L. 106-182,
		  which eliminated the Social Security retirement earnings test in and after the
		  month a person attains "full retirement age (FRA)," a retirant reaching full
		  retirement age may return to service without being subject to the earnings
		  limitations. "Full retirement age (FRA)" will gradually increase from age 65 to
		  age 67.2
B. Effective July 1, 1992, a retirant who is
		  under age 65 may earn up to twice the Social Security earnings limitation
		  amount without affecting his/her ATRS benefits. If his/her ATRS covered
		  earnings exceed that amount, $1 in benefits will be deducted for each $2 earned
		  above the earnings limitation amount.
C. For each year ending June 30, the Social
		  Security retirement test to be considered shall be the test in effect for the
		  calendar year beginning the January 1 immediately preceding June 30. The
		  retirant's earnings shall be his or her remuneration for the employment for the
		  year ending June 30.
1 (Prior to July 1,
		  1991, the earnings limitation applied to retirants who were
* employees with ATRS, ASHERS, or ASERS from 7-1-71 through
			 6-30-77;
* employees with a public employer, whose employers are covered
			 by a state-supported retirement plan or the University of Arkansas from 7-1-77
			 through 6-30-78;
* employees of a public employer whose employees are covered by a
			 retirement plan supported wholly or in part by state contributions from 7-1-78
			 through 6-30-91.)
*
2
		  Previously, a retirant aged 65 to 69 could earn up to twice the Social Security
		  amount without affecting his/her ATRS benefits. If his/her ATRS covered
		  earnings exceeded that amount, $1 in benefits was to be deducted for each $3
		  earned above the earnings limitation amount.
D i. For those retirants exceeding the earnings limitation, the
			 System will suspend payment of benefits in the fiscal year in which the
			 earnings limitation is exceeded; however, if the System is not notified in a
			 timely manner, the System may carry over suspension of benefits into the next
			 fiscal year.
ii. In the case of
		  hardship to the retirant or for the convenience of the System, upon request of
		  the retirant, the System may negotiate an alternate method of repayment other
		  than total suspension of retirement benefits for the recovery of the amount of
		  benefits which exceeded the earnings limit.
iii. The amount recovered by ATRS will not
		  exceed the amount of benefits paid during the year(s) in which the earnings
		  limitation is/was exceeded.
iv. For
		  questions not covered by this rule, see No. 9-6-1 (Error Corrections and
		  Collection of Overpayments).