Arkansas Administrative Code › Agency 088 - Arkansas Teacher Retirement System › Rule 088.00.05-005 - Policy No. 10-2: Conditions Under Which a Retirant May Return to Covered Service Other than by Rescinding Retirement

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 that 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 (Error Corrections and Collection of Overpayments).