Arkansas Administrative Code › Agency 088 - Arkansas Teacher Retirement System › Rule 088.00.12-001 - Rules 0-1: Organization and Operation, 7-2: Proof of Service Credit, 7-4: Reporting Employee and Employer Contributions, 8-1: Purchase of Service Credit/Repayment of Refunds, 8-2: Refund of Member Contributions, 8-3: Repayment of Refunded Member Contributions, 8-5: Purchase of Payment Rules , 8-6: Cancellation of Purchase Service Accounts, 8-8: Free Teaching Service Before 1937, 9-4: Disability Retirement, 9-7: Annuity Options and Disposition of Residue After Retirement, and 10-3: Teacher Deferred Retirement Option Plan (T-DROP)

Current through Register Vol. 49, No. 6, June, 2024
1.
INFORMATION FOR PUBLIC GUIDANCE
The Arkansas Teacher Retirement System ("ATRS") is located at
			 1400 West Third Street, Little Rock, AR 72201. Questions about ATRS may be
			 addressed by visiting the ATRS website (
www.artrs.gov
). emailing ATRS at
			 info@artrs.aov: phoning ATRS at 1-800-666-2877 or 501-682-1517; or sending a
			 fax to ATRS at 1-800-682-2663. Visits may be made to the ATRS office between
			 8:00 a.m. and 4:30 p.m. Monday through Friday, except on holidays. Appointments
			 are not required but are suggested.
ATRS makes available a list of persons holding certain
			 responsibilities for handling FOIA requests and requests by the public so that
			 the public may obtain information about ATRS or make submissions or requests.
			 The names, mailing addresses, telephone numbers, and electronic addresses can
			 be obtained from the ATRS office or website.
The ATRS policies, rules and regulations, and official forms may
			 be obtained from the ATRS office or from the ATRS website.
2.
DESCRIPTION OF THE ARKANSAS TEACHER
		  RETIREMENT SYSTEM
The Arkansas Teacher Retirement System ("ATRS") is a cost-sharing
			 multiple-employer, defined benefit pension plan established on March 17,1937,
			 by authority of the Arkansas General Assembly under Act 266 of 1937 (Ark. Code
			 Ann. § 24-7-101
et seq.).
ATRS is operated as a
			 "qualified trust" under section 401 (a) of the Internal Revenue Code. ATRS is a
			 component unit of the State of Arkansas.
The General Assembly is responsible for setting benefits and
			 contributions and amending plan provisions.
Ultimate authority, general administration and responsibility for
			 the proper operation of ATRS, and for making effective the provisions of A.C.A.
			 §§ 24-7-201
et seq.
are vested in the fifteen-member
			 Board of Trustees. Eleven members are elected, and four members serve as ex
			 officio members by virtue of their elected positions in state government. The
			 Board appoints the executive director of ATRS who serves as its chief executive
			 officer.
The Board of Trustees promulgates rules as it deems necessary
			 from time to time in the transaction of its business and in administering the
			 Arkansas Teacher Retirement System
For administrative purposes, the agency is comprised of several
			 divisions: Administration, Membership Services, Data Processing, Investments,
			 and Fiscal Affairs.
3.
ORGANIZATION AND OPERATION OF THE ATRS BOARD OF TRUSTEES
The officers of the ATRS Board of Trustees are a chair and vice
			 chair. Election of officers is held in the odd numbered years at the first
			 regular meeting after the beginning of the fiscal year. These officers perform
			 the duties prescribed by applicable law, this rule, and
Robert's Rules
			 of Order.
The business of ATRS is conducted in public meeting pursuant to
Robert's Rules of Order.
All meetings are conducted in
			 conformity with the Arkansas Freedom of Information Act. Regular meetings are
			 held at least quarterly. Special meetings may be held on the call of the chair
			 or as scheduled by action of the Board in a regular meeting.
A quorum for the transaction of business Is a majority of the
			 number of voting members of the Board.
The ATRS Board of Trustees may create standing and ad hoc
			 committees whose membership is determined by the chair of the Board. A quorum
			 for the transaction of committee business Is a majority of the number of voting
			 members of the committee.
The Executive Director prepares the agenda for regular and
			 special meetings. The agenda is distributed to Board members and made available
			 to the public in advance of the meeting. The agenda may be amended by
			 appropriate motion.
Trustees, members, and other individuals wishing to have
			 additional items considered for the agenda should submit a request to the
			 Executive Director prior to a regularly scheduled meeting.
4.
RULEMAKING
The ATRS Board has been authorized by the Legislature to
			 promulgate rules. ATRS follows the procedural requirements of the Arkansas
			 Administrative Procedure Act, in particular A.C.A. § 25-15-203 and A.C.A.
			 § 25-15-204. Additionally, ATRS is required to abide by the provisions of
			 A.C.A. §10-3-309.
The process of adopting a new rule or amending or repealing an
			 existing rule (hereinafter referred to as "rulemaking") may be initiated by
			 request of the Board or the ATRS staff. Additionally, persons outside the
			 agency may petition for the issuance, amendment, or repeal of any rule.
ATRS will give public notice of proposed rulemaking to be
			 published pursuant to A.C.A. § 25-15-204. The notice will set any written
			 comment period and will specify the time, date, and place of a public hearing,
			 if any.
Before finalizing language of a proposed new rule or an amendment
			 to, or repeal of, an existing rule, ATRS will receive public input through
			 written comments and/or oral submissions. ATRS will designate in the public
			 notice the format and timing of public comment.
A public hearing may be held; if so, it will provide affected
			 persons and other members of the public a reasonable opportunity for
			 presentation of evidence, arguments, and oral statements within reasonable
			 conditions and limitations imposed by the agency to avoid duplication,
			 irrelevant comments, unnecessary delay, or disruption of the
			 proceedings.
Thirty days before the public comment period ends, ATRS will file
			 with the Bureau of Legislative Research the text of the proposed rule or
			 amendment, as well as a financial impact statement and a Bureau of Legislative
			 Research questionnaire as provided by A.C.A. § 10-3-309. In addition, a
			 copy of the public notice, the text of the proposed rule or amendment, and a
			 summary will be filed with the Secretary of State. Also, a copy of the public
			 notice and the text of the proposed rule or amendment will be published on the
			 ATRS website, if available.
Generally proposed rules or amendments will be reviewed by the
			 appropriate committee of the ATRS Board of Trustees for recommendation prior to
			 submission to the full Board for consideration and final action.
ATRS will not finalize language of the rule or decide whether to
			 adopt a rule until the period for public comment has expired.
After the ATRS Board formally adopts a new rule or amends a
			 current rule or repeals an existing rule, and after the rule change has been
			 reviewed by the Legislative Council, ATRS staff will file final copies of the
			 rule with the Secretary of State, the Arkansas State Library, and the Bureau of
			 Legislative Research, or as otherwise provided by A.C.A. §
			 25-15-204(d).
Proof of filing a copy of the rule, amendment, or repeal with the
			 Secretary of State, the Arkansas State Library, and the Bureau of Legislative
			 Research will be kept in a file maintained by the Executive Director's
			 office.
Notice of the rule change will be posted on the agency website,
			 if available, and rules will be made available to interested persons.
5.
EMERGENCY
		  RULEMAKING
Upon receipt of a written statement requesting emergency
			 rulemaking or other evidence to support an assertion that an emergency exists,
			 ATRS will make an independent judgment whether the circumstances and facts
			 constitute an imminent peril to the public health, safety, or welfare requiring
			 adoption of the rule with fewer than 30 days notice. If it is determined that
			 the circumstances warrant emergency rulemaking, a written determination setting
			 out the reasons for the finding that an emergency exists will be made. Upon
			 making this finding, the ATRS Board may proceed to adopt the rule without any
			 prior notice or hearing, or it may determine to provide an abbreviated notice
			 and hearing.
The emergency rule will be effective immediately upon filing, or
			 at a stated time less than thirty (30) days thereafter, if ATRS finds that this
			 effective date Is necessary because of imminent peril to the public health,
			 safety, or welfare. ATRS will file with the rule Its written findings
			 justifying the determination that emergency rulemaking Is appropriate and, if
			 applicable, the basis for the effective date of the emergency rule being less
			 than ten days after the filing of the rule pursuant to A.C.A. §
			 25-15-204(e).
6.
APPEALS
An ATRS member, beneficiary, survivor, retiree, or employer may
			 request a staff determination letter from an ATRS staff member responsible for
			 staff decisions relating to the member's, beneficiary's, survivor's retiree's
			 or employer's issues. If the member disagrees with the staff determination
			 letter, then the member may seek a review by the executive director using the
			 procedures set forth in Section 13 of the ATRS rules. The executive director's
			 decision upon review may be appealed to the ATRS Board of Trustees using the
			 procedures set forth in Section 13 of the ATRS rules. A description of the
			 appeals process may be obtained by contacting ATRS or from the ATRS
			 website.
NOTE: These are general rules for the organization and operation
			 of the system. Additional and more specific information is provided in the
			 Policies, Rules and Regulations of ATRS, which may be found on the ATRS website
			 www.artrs.gov.under "Publications") or which may be obtained by contacting the
			 Executive Director's office at 501-682-1517 or 1-800-666-2877).
Adopted:
December 6, 2005
Amended:
April 26, 2007
Adopted by Board:
February 6, 2012
Amended:
April 18,2012
Effective: May 29, 2012
PROOF OF SERVICE CREDIT
A.C.A. §§ 24-7-601-611, A.C.A. § 24-7-406 and
			 A.C.A. §24-7-705
REGULATIONS
The Board shall determine the number of years and fractions
			 thereof for paid service credited to members of the System. No fewer than one
			 hundred sixty (160) days of employee service in a fiscal year (ending June 30)
			 shall be credited as a full year of service.
Members employed less than one fourth (H) of a fiscal year are
			 not eligible for credit or benefits in ATRS that fiscal year provided however,
			 a contributory member's service days beginning in the 2011-2012 fiscal year,
			 are carried forward from previous fiscal years until at least one quarter year
			 of service is obtained by the member, if a contributory member obtains at least
			 a quarter year of service in a fiscal year, whether using regular service days
			 or accumulated service days, or both, the member begins the next fiscal year
			 with no days of service carried forward.
RULES
1.
FOR MEMBERS WITH SERVICE AFTER JULY
		  1, 1971
A. Actual service credited to a
		  member's account shall be determined in accordance with the following table:
Number of Days Worked in a Fiscal Year
Service Credit Earned
1 -39
None
40-79
0.25 year
80-119
0.50 year
120-159
0.75 year
160 days or over
1.00 year
B. All
		  contracts between an ATRS employer and member that specify the number of days
		  worked by the member shall be used by ATRS to establish the number of days of
		  service worked. If a member is employed in a position that a regular and
		  typical work day includes eight (8) hours or more of work time (full-day
		  position), then four (4) hours of work in a day shall be required for a "day"
		  of service. For "full-day" members who do not work four (4) hours or more a
		  day, the total number of hours worked in a fiscal quarter divided by four (4)
		  will determine the number of days to be credited. ATRS employers have
		  specialized support positions that include work as bus drivers, custodial
		  workers, cafeteria workers, and similar positions that a typical day of service
		  by the member will be less than eight (8) hours of work a day. Effective for
		  the 2011 -2012 fiscal year, a member employed, without a contract specifying
		  the number of days of service to be worked, In a specialized support position
		  shall receive a full day of service credit, even if the member works less than
		  four (4) hours in a service day, if the ATRS employer reasonably determines
		  that the member performed the regular and usual service expected of a member in
		  that position during the service day.
C. For purposes of days counted toward
		  service credit, absences shall be counted as service if for paid leave
		  including paid sick leave. However, for administrative leave, the member must
		  be on call by the employer for the service to be counted.
D. The System shall not give service credit
		  to a member until all required contributions and interest, if any, are remitted
		  to the System.
E. The participating
		  employers shall certify proof of service on such forms with any documentation
		  required by the System.
F. If a
		  member is retiring with an effective date other than October 1, January 1,
		  April 1, or July 1, service credited for the year in which a member retires
		  shall not exceed H year for each full calendar quarter worked during the fiscal
		  year.
G. In any case of question as
		  to service credit of a member, the Board of Trustees has the final authority to
		  decide the amount of service creditable to a member.
Amended:
July 18, 2005
June 16, 2009 (Emergency)
October 5, 2009 (Permanent)
July 1, 2011 (Emergency)
Adopted:
August 8, 2011
Effective:
November 11, 2011
Board Approved:
February 6, 2012
Amended:
April 2, 2012 (Emergency)
Effective:
May 29, 2012
REPORTING EMPLOYEE AND EMPLOYER CONTRIBUTIONS
A.C.A. §§ 24-7-401, 411, 708,1303 and A.C.A. §
			 24-2-701
RULES FOR THE EMPLOYER CONTRIBUTION RATE
by
A.C.A. § 24-7-401 as amended by Act 468 of 2009 and A.C.A.
			 § 24-2-701)