MEMBERSHIP
POLICIES
1.
Membership in the Teacher Retirement System shall be an integral part of the
agreement entered into by a member and his board or employing agency.
Membership is automatic and the cooperation of the member is needed to fulfill
the rules and regulations as adopted by the Board of Trustees and required by
law. (Act 866/99)
2. Beginning July
1, 1989, membership in the System covers all employees of the school district.
Those employees whose non-teaching service began before July 1, 1989, and whose
non-teaching service is covered or coverable by the Public Employees Retirement
System, shall continue to be covered by that system for all non-teaching
service. All persons newly hired after July 1, 1989, by a covered employer
shall become members of the Teacher Retirement System. Beginning July 1, 1991,
all part-time persons, except public school students, employed in a covered
position shall become members of the Teacher Retirement System. Beginning July
1, 1993, employees who accumulate less than thirty (30) days of credited
service within a fiscal year are not eligible for membership in the Teacher
Retirement System.
Effective July 1, 1993, membership in the Teacher Retirement System
shall include employment in a position with an educationally related agency if
the employee is or has been a member of the Teacher Retirement System for a
minimum of five (5) years and elects to become or remain a member of the
system. The employment shall be related to the training of public school
employees or school board members or teaching public school students or in
adult education programs. The employment shall not be related in any manner to
private schools. The employer shall be responsible for all required employer
contributions.
A person, who has excluded himself from membership before July 1, 1991,
may rescind the exclusion by filing with the system a Membership Data
Form.
3. Effective July 1,
1997, under certain conditions, membership in the Teacher Retirement System
shall include employment in an enterprise privatized by a public school
district. If a public school district should privatize any of its services, any
individual who is or was employed by the school district in one of those
services and who is or has been a member of ATRS may elect to remain a member
provided the Board of Trustees determines by adopting rules and regulations
that participation of these employees in the system will not in any way impair
any legal status of the system, including, but not limited to, its status as a
governmental plan, or have a substantial adverse impact on the actuarial
soundness of the system. In addition, the private provider must assume all
responsibility for the required employer contributions and any fees for
obtaining IRS rulings or ERISA opinions. (Amended by Act 1064 of 1997) See
"Privatized Employers and Nonprofit Corporations Requesting Entry into the
Arkansas Teacher Retirement System."
4. Effective July 1, 1997, under certain
conditions, membership in the Teacher Retirement System shall include
employment in positions with educational nonprofit corporations, provided the
nonprofit corporation has elected to participate in the Arkansas Teacher
Retirement System and the Board of Trustees determines by adopting rules and
regulations that participation of these employees in the system will not in any
way impair any legal status of the system, including, but not limited to, its
status as a governmental plan, its tax-qualified status under the Internal
Revenue Code, or would subject the plan to additional federal requirements, or
have a substantial adverse impact on the actuarial soundness of the system.
Such employment shall be related to the training of public school employees or
school board members, teaching public school students, or in adult education
programs. The employment shall not be related in any manner to private schools.
Each educational nonprofit corporation shall be approved according to rules and
regulations established by the Board of Trustees to be considered an employer,
and such nonprofit corporation assumes all responsibility for the required
employer contributions and any fees for obtaining IRS rulings or ERISA
opinions. (Amended by Act 1064 of 1997; Act 865 of 1999)
a) All employees of a new ATRS employer must
participate in the Arkansas Teacher Retirement System as a condition of their
employment.
b) Employees of a new
ATRS employer will enter the system as a non-contributory member, and be
allowed one (1) year from the date the new employer is approved by the Board of
Trustees to make an irrevocable choice to participate in either the
contributory or non-contributory plan.
c) Employees of a new employer who want to
purchase their previous service with the new employer may do so in accordance
with the policies pertaining to the purchase of prior service. Service with
other Arkansas educational nonprofit corporations not covered by ATRS may be
purchased in accordance with the policies pertaining to the purchase of private
school service.
d) A retiree who is
working for a new ATRS employer on the date the employer is approved by the
Board of trustees, may continue employment with the employer and not be subject
to the ATRS earnings limitation.
5. Effective July 1, 2001, those employees
whose non-teaching service began before July 1, 1989, and whose non-teaching
service is covered or coverable by the Public Employees Retirement System may
elect to be covered by the Arkansas Teacher Retirement System. The election
shall be made prior to May 31st on the form provided
by the System and shall be effective the following July 1. (Act 742 of
2001)
AGE AND SERVICE (VOLUNTARY) RETIREMENT
1.
ELIGIBILITY/QUALIFICATIONS
(Amended by Acts 281 and 282 of 1995; Acts 992 and 1053 of 1997; Act 461
of 2001) (A.C.A.. § 24-7-701)
a)
Effective July 1, 1998, any active member who attains age 60 and has 5 or more
years of actual service may voluntarily retire upon written application filed
with the Board of Trustees.
b)
Active membership will continue beyond a fiscal year in which credited service
was rendered, provided the employing institution certified continuing
employment. Leave of absence with pay upon which the member is making
contributions also continues active membership.
c) Effective April 1, 1997, any active or
inactive member who has 28 or more years of credited service but has not
attained age 60 years may voluntarily retire without reduction in benefits upon
written application filed with the Board.
i.
For active members, said annuity shall begin the first day of the calendar
month next following the latest of:
(A) one
month after the date the written application is filed with the board;
(B) the member's termination of
active membership;
(C) the member's
attainment of the minimum age; or
(D) the member's completion of the minimum
years of credited service.
ii. For inactive members, said annuity shall
begin the first of the month following the date of application.
d) Effective July 1, 2001;
(i) A member who has not attained normal
retirement age (65) must terminate covered employment to be eligible for
retirement.
(ii) A member shall not
be considered to be terminated from employment for retirement purposes if the
person returns to a position that would otherwise be covered by ATRS within
thirty (30) days of the person's effective date of retirement.
(iii) A person failing to meet these
termination of employment requirements shall forfeit retirement benefits until
the requirements are met.
e) In no event shall such annuity begin
earlier than the July 1 next following a fiscal school year for which the
member has signed an employment contract unless his contract is terminated with
employer consent before the year of service is rendered.
f) Effective July 1, 1995, a member retiring
with an effective date other than July 1, who has not completed his employment
contract and who wants to retain credit for service within the current fiscal
year may make application to retire one (1) full month prior to the month
benefits are to be effective. No salary earned during the fiscal year may be
used in the computation of benefits and no more than one-fourth (1/4) of a year
of service credit shall be given for each quarter completed, regardless of the
number of days worked in a quarter. If a member has signed an employment
contract for a fiscal year and has been paid in full for that year, benefits
shall not become effective until July 1.
g) The official postmark date may be used as
the official date of a transaction when the use of the mails is the usual and
customary method of communication for handling such transactions.
h) The date of application for disability
retirement benefits may be used to determine the effective date of age and
service retirement benefits under the provisions of the law. The date of
application for age and service retirement benefits may be used to determine
the effective date of disability retirement under the provisions of the
law.
i) A member may cancel his
application for retirement benefits any time prior to thirty (30) days after
the later of: the effective date of benefits; or the receipt of the first
retirement check . The member shall notify the Teacher Retirement System of
such cancellation in writing within the 30-day period, and he shall again
become eligible for active membership in the system. This shall be in effect
for the 1993-94 fiscal year and thereafter.
j) Leave earned prior to the date of
termination of employment does not change the date of termination, although a
lump sum payment is made subsequent to the date of termination. The key to
termination is the date the employee actually goes off the payroll.
2.
BENEFITS
a) Benefits Formula (Amended by Act 992 of
1997; Act 396/99)
For payment periods April 1, 1997 and later, the benefits payable under
the above formula shall not be less than the total number of years of credited
service multiplied by not less than 2.065% of his final average salary, except
that benefits shall not be less than 1.305% of his final average salary
multiplied by his number of years of credited service rendered after July 30,
1986, for which no member contributions were made.
For an increase(s) in benefit formulas to be effective, the regular
annual actuarial valuation for the calendar year immediately preceding the
effective date of the increase(s) shall be based upon an investment rate
assumption of no more than eight percent (8%) and shall indicate that up to and
including a twelve percent (12%) of pay employer contribution rate is
sufficient to amortize all unfunded actuarial accrued liabilities for members
over a period of thirty (30) years or less. For any increase to be effective on
a scheduled date, all increases scheduled for that date must collectively meet
the minimum financial conditions.
On any scheduled date the increases do not collectively meet the
minimum financial conditions, the Board of Trustees shall have the authority to
delay the increase until the minimum financial conditions are met. Such delayed
increase shall only be given on a July 1 and shall be the increases set out
above.
Act 396 of 1999 provides the ATRS board authority to increase the
multiplier used to compute retirement benefits from 2.065% to 2.15% for
contributory service and 1.305% to 1.39% for non-contributory service when
actuarially appropriate. In addition, this legislation authorized the Board to
provide an increase for retirees and beneficiaries already on the retirement
rolls.
Effective July 1, 1971, if additional Teacher Retirement contributions
are remitted by an employer for any retirant, and the additional salary does
not result in an annual increase or decrease in benefits of at least $5.00, the
contributions will be transferred from the Members' Deposit Account to the
Employer Accumulation Account without making any change in the records in the
member's folder. These transfers will be made annually or as deemed necessary.
If the additional salary does increase or decrease the retirant's benefits at
least $5.00 annually, the benefits will be recomputed and necessary changes
will be made in the member's records.
A retirant whose final average salary for annuity purposes was $7800
may elect to change effective July 1, 1986, to the non-contributory plan and
from that date be considered on full salary. Additional employer contributions
for that period shall not be due from the retirant. However, if a retirant
elects to make this change, he must pay the additional employee and employer
contributions due on any service reported between July 1, 1969, and June 30,
1986. When all contributions due have been paid, the monthly annuity for the
retirant shall be recalculated, using the actual salary earned, and the
increase in the annuity shall be effective the first of the month following the
payment of all contributions due.
b)
Minimum Benefits(Amended by
Act 1053 of 1997; Act 221/99 and 396/99)
1.
Any member who has 10 or more years of credited service shall receive the
following minimum benefit: $150.00 per month if the member has only
contributory credited service; $94,00 per month if the member has only
non-contributory service; and a monthly amount prorated between $94.00 and
$150.00 if the member has a combination of contributory and non-contributory
service.
2. Any member retiring
July 1, 1998 or later and who has 5 or more years of credited service shall
receive the following minimum benefit: $100.00 per month if the member has only
contributory service; $64.00 per month if the member has only non-contributory
service; and a monthly amount prorated between $64.00 and $100.00 if the member
has a combination of contributory and non-contributory service.
3. Beginning July 1, 1998, if a member has at
least five (5) years of contributory service, regardless of his number of years
of non-contributory service, his monthly annuity shall not be less than one
hundred dollars ($100.00).
c)
Fractional Years of Service
Credit
Board policy allows fractional years of credit for service rendered
after July 1, 1971, as follows:
|
Number of Days
|
Years of Service Credit
|
|
0 - 29
|
None
|
|
30 - 59
|
1/4 year
|
|
60 - 89
|
1/2/year
|
|
90 - 119
|
3/4 year
|
|
120 or more
|
1 year
|
For a member retiring before August 13, 1993, if any fractional part of
a year in which the member retires is used in computing benefits, the effective
date of benefits would be the following July 1. The member would have the
option of forfeiting the fractional year. In this case, contributions that he
made during the year in which he retired would be refunded to him upon request.
If the member chose this option, his benefits would be computed on his service
through the preceding fiscal year.
In no event shall such annuity begin earlier than July 1 next following
a fiscal school year for which the member has signed an employment contract
unless his contract is terminated with employer consent before the year of
service is rendered.
For a member retiring after August 13, 1993, with an effective date
other than July 1, who has not completed his employment contract and who wants
to retain credit for service within the current fiscal year, his retirement
date may be October 1, January 1 or April 1. No salary earned during the fiscal
year may be used in the computation of benefits and no more than one-fourth
(1/4) of a year of service credit may be given for each quarter worked,
regardless of the number of days worked in a quarter. If a member has signed an
employment contract for a fiscal year and has been paid in full for that year,
benefits shall not become effective until the next July 1.
Should a member not want to retain his current year service credit, his
retirement will be handled in the same manner as if he had retired before
August 13, 1993.
d)
Built-in Cost of Living Increase
1. Beginning July 1, 1983, and each year
thereafter, all retirees who have been on the rolls 12 months or longer shall
receive a 3% increase. This increase will be added each year as long as they
remain on the benefit payrolls (Act 400/99). (A.C.A. §24-7-713)
2. Act 404 of 1999 grants the ATRS Board of
Trustees authority to compound the cost-of-living adjustment when actuarially
appropriate. (A.C.A. §24-7-727)
e)
Additional Benefit (Act
400/99; Acts 360 & 742/01; Act 853/03) (A.C.A. §24-7-713(b)(2).
Members with five (5) or more years of credited service with ATRS
retiring after July 1, 1999, and their survivors and beneficiaries, shall
receive an additional benefit of $75.00 per month over and above their regular
annuity. The ATRS Board may authorize raising the additional benefit to an
amount not to exceed $200 per month.
f)
Suspension of Benefits(Act
29/99)
Anyone entitled to receive an annuity from the system may request the
ATRS Executive Director in writing, for personal reasons and without
disclosure, to suspend the payment of all benefits otherwise payable to him/her
by the system. Upon approval to authorize suspension of benefits, the person
shall be deemed to have forfeited all rights to the benefit but will retain the
right to have the full benefit reinstated upon written notice to the Executive
Director to revoke the request for suspension.
g) Benefits are payable through the month in
which the retirant's death occurs.
h)
Annuity Options
Before the date the first payment of an annuity becomes due, but not
thereafter, except as provided under item 7, a member retiring on age and
service or disability may elect to receive his annuity provided in one of the
following options:
Option 1: He may elect his annuity as straight life
annuity payable as long as he lives. Upon his death the difference, if any,
between his accumulated contributions, plus interest, and the amount paid in
benefits, shall be paid to the beneficiary, if living; otherwise it will be
paid to the estate.
Option A: He may elect the actuarial equivalent of his
straight life annuity in a reduced annuity payable throughout his life and,
upon his death, his reduced annuity shall be continued throughout the life of,
and paid to, such person as he shall have nominated by written designation duly
executed and filed with the Board of Trustees prior to the date the first
payment of his annuity becomes due. Such person must either be his spouse for
not less than one year immediately preceding such first payment due date or
another person, aged 40 years or older, receiving more than one-half support
from the retirant for not less than one year immediately preceding such first
payment date, provided the age 40 requirement shall not exclude designation as
beneficiary a dependent child who has been ruled physically or mentally
incompetent by an Arkansas court of competent jurisdiction (or by the
Board).
Option B: He may elect the actuarial equivalent of his
straight life annuity in a reduced annuity payable throughout his life and,
upon his death, one-half of his reduced annuity shall be continued throughout
the life of, and paid to, such person as he shall have nominated by written
designation duly executed and filed with the Board of Trustees prior to the
date the first payment of his annuity become due. Such person must be either
his spouse for not less than one year immediately preceding such first payment
due date, or another person, age forty (40) years or older, receiving more than
one-half support from the retirant for not less than one year immediately
preceding such first payment due date, provided that the age 40 requirement
shall not exclude designation as beneficiary a dependent child who has been
ruled physically or mentally incompetent by an Arkansas court of competent
jurisdiction (or by the Board).
If a retirant who elected Option A or B and his beneficiary both die
before he has received an annuity equal to the accumulated contributions
standing to the retirant's credit in the Member's Deposit Account at the time
of his retirement, the difference between his said accumulated contributions
and the said total amount of annuities received by him shall be paid to such
person or persons as the retirant shall have nominated by written designation
duly executed and filed with the Board of Trustees. If no such designated
person survives the retirant and his surviving beneficiary, such difference, if
any, shall be paid to the estate of the survivor of the retirant and his
beneficiary.
Option C: He may elect a reduced annuity payable
throughout his life with the provision that if he dies before he has received
120 monthly annuity payments, the payments will be continued for the remainder
of the period of 120 months and paid to each person or persons, in equal
shares, as the retirant shall have nominated by written designation duly
executed and filed with the Board of Trustees. If such designated beneficiary
or beneficiaries predecease the retirant, the retirant may nominate a successor
beneficiary or beneficiaries by written designation duly executed and filed
with the Board. If no such designated beneficiary survives him, the retiree may
elect Option 1 - Straight Life Annuity (Act 395/99).
Prior to the receipt of the first retirement check, the retiree shall
name a beneficiary or beneficiaries and may name a contingent beneficiary or
beneficiaries.
The Attorney General has ruled that a beneficiary of a retiree may not
name a beneficiary to succeed him should he not survive to draw the remaining
120 payments under Option C. In the case of a retiree reaching one hundred
twenty (120) months under the Option C election, ATRS will ensure the pop-up to
Option 1.
The death of a spouse or divorce or other marriage dissolution
following retirement shall, at the written election of the retirant, cancel any
optional plan elected at retirement to provide continuing lifetime benefits to
such beneficiary and return the retirant to his single lifetime benefit
equivalent, to be effective the month following receipt of his election by the
system. A retirant who is receiving a single lifetime benefit and who marries
after retirement may elect to cancel his single lifetime benefit and elect
Option B providing continuing lifetime benefits to his spouse.
Effective February 7, 1991, the designated beneficiary of a retiree who
chose Option 1 (straight life annuity) may elect to cancel the form of annuity
in effect and elect Option A - 100% Survivor Annuity upon the death of a
retirant on or after July 1, 1989, if the retirant died within one year
following the effective date of retirement and the retirant was receiving a
straight life annuity. Such election to change may be made only once and must
be on a form approved by the system. The election form must be received by the
system within thirty (30) days after the effective date of Act 51 of 1991, or
within thirty (30) days of the death of the retiree, whichever is later. Such
election change shall become effective the first day of the month following
receipt of the election form by the system.
A retirant who retired on or after July 1, 1994, may elect to cancel
his election made at retirement for receiving an annuity and elect another
option, provided:
a) It is done within
one (1) year from July 1, 1995, or within one (1) year of retirement;
b) It is filed with the system on a new
election form approved by the system; and
c) The system is repaid the difference
between the amount of the annuity received when the individual retired and the
new annuity is due as a result of the election change, plus six percent (6%)
interest from July 1, 1994 or the date of retirement, whichever is later, to
the date of payment in full. The difference shall be calculated retroactive to
July 1 1994, or the date of retirement, whichever is later, to the date of
payment in full. The difference shall be calculated retroactive to July 1,
1994, or the date of retirement, whichever is later. The election change can
only be made once and shall be effective retroactive to the effective date of
the annuity.
After July 1, 1998, interest charged will be no less than the System's
current actuarial interest rate assumption, which is eight percent (8%).
DISABILITY RETIREMENT
A.C.A. 24-7-704
DEFINITIONS
1. (Deferred
Provision) - Disability protection continues for deferred members, provided
applicant's physician can present medical information to substantiate approval
by the Medical Board that disability occurred while last employed in a position
covered by the System.
2. (Active
Membership) - The member must be an active member of this System when the
disability occurs. Active membership will continue beyond a fiscal year in
which credited service was rendered, provided the employing institution
certified continuing employment. Leave of absence with pay, upon which the
member is making contributions, also continues active membership.
3. (Death of an active member) - In the case
of an active member who has made application for disability retirement and dies
before he has signed his Final Retirement Contract, determination must be made
by the System, on an individual basis, as to whether survivor benefits or
disability benefits would be payable.
4. (Effective date of benefits) - In
determining the date to be used for termination of active membership, as
applied to the effective date of disability benefits, the last date of teaching
is to be used. Paid sick leave, if any, would be included to extend the date of
active membership and would be included to determine the days of service to be
credited.
5. (Date of application)
- The date of application for disability retirement benefits may be used to
determine the effective date of age and service retirement benefits under the
provisions of the law. The date of application for age and service retirement
benefits may be used to determine the effective date of disability retirement
benefits under the provisions of the law.
6. (Minimum Benefits)* - A disability retiree
with ten (10) or more years of Arkansas service shall not receive less than
$1800.00 per year (contributory option) or $1128.00 (non-contributory option).
After July 1, 1997, a disability retiree with five (5) or more years of
Arkansas service shall not receive less than $1200 per year (contributory
option) or $768.00 per year (non-contributory option). (Amended by Act 1053 of
1997)
POLICIES
1. Upon the written
application by a member, or upon written application by his/her employing
authority on behalf of the member, filed with the Board of Trustees, a member
in employer service who has five (5) or more years of credited service, and who
has become or becomes totally and permanently physically or mentally
incapacitated to perform the duties of his/her position covered by the Teacher
Retirement System, as a result of a personal injury or disease, may be retired
by the Board of Trustees; provided, that after a medical examination of said
member made by or under the direction of the Medical Board, the Medical Board
reports by majority opinion in writing to the Board of Trustees, that such
member is:
a) Physically or mentally totally
incapacitated for the further performance of duty,
b) That such incapacity will probably be
permanent, and
c) That such member
should be retired or
d) That such
member should be retired under temporary disability retirement to be
reconsidered at a specified time.
2. Such disability retirement shall be
effective the first day of the month following the later of: his/her
termination of active membership; or six months prior to the date written
application is filed with the Board.
3. The annuity formula for computing
disability retirement benefits is the same as for age and service
retirement.
4.
a.
Effective July 1, 2001, an active member who has not attained normal
retirement age (65) must terminate employment to be eligible for disability
retirement.
b. A member
shall not be considered terminated from employment for retirement purposes if
the person returns to a position that would otherwise be covered by ATRS within
thirty (30) days of the person's effective date of retirement.
c. A person failing to meet the termination
of employment requirements shall forfeit retirement benefits until the
requirements are met.
5.
a.
The Board of Trustees may require any disability retirant who has not
attained age 60 to undergo a medical examination to be made by or under the
direction of the Medical Board at least once each year during the first five
(5) years following a member's retirement, and at least once in each three-year
(3) period thereafter.
b.
If the retirant refuses to submit to the medical examination, his/her
disability annuity may be suspended by the Board until his/her withdrawal of
his/her refusal.
c. If his/her
refusal continues for 1 year, all his or her rights in and to a disability
annuity may be revoked by the Board.
d. If, upon the medical examination of the
retirant, the Medical Board reports to the ATRS board that the retirant is
physically and mentally able and capable or resuming his/her duties in the
postion held by him or her at the time of disability retirement, then his or
her disability retirement shall terminate.
6. If a disability retirant under age 60
becomes employed as a full time employee by an employer whose employees are
covered by a public employer whose employees are covered by a retirement plan
supported wholly or in part by state contributions, his/her disability
retirement shall terminate. His/her credited service and accumulated
contributions at the time of disability retirement shall be restored to his/her
credit in the members deposit account, and the person shall immediately again
become a member of the System, if eligible. In no event shall a member be given
service credit for the period in which he received a disability annuity. (Act
541 of 1977) See policies under "CONDITIONS UNDER WHICH A RETIRANT MAY RETURN
TO COVERED SERVICE OTHER THAN BY RESCINDING RETIREMENT".
7. (Reciprocal service)
a) If a member has five (5) or more years of
creditable service in two or more reciprocal systems, /she is eligible to apply
for disability benefits from each reciprocal system.
b) Eligibility for disability benefits is
determined under the rules and regulations of each respective reciprocal
system.
c) The member shall be
eligible for a refund of his/her accumulated contributions plus interest, if
any, from any reciprocal system in which he /she does not qualify for
disability benefits. Such refund shall not alter his/her eligibility for
benefits from any other reciprocal system.
d) The member's annuity for disability
retirement payable by the preceding system shall begin the first day of the
calendar month next following the month he/she filed his application for same
with the preceding system but not prior to the date he/she leaves the employ of
his/her last State employer.
8. Disability retirees who are approved for
only one year shall be reviewed one year from the effective date of benefits.
Disability retirees who are disapproved for further disability annuities shall
be removed from the payroll the earlier of: six months following the review
date (one year from effective date of benefits) or the first of the month
following return to full time employment.
9. The Board of Trustees may require any
disability retirant who has not attained age 60 to undergo a medical
examination. If the retirant refuses to submit to the medical examination,
his/her disability annuity may be suspended by the Board until his/her
withdrawal of his/her refusal.
10.
If a member is approved for disability retirement but continues to work, he/she
must terminate employment at the end of the school year. If service is not
terminated at that time, a new application must be submitted and Medical Board
approval must be given based on the new application.
11. If a disability retirant returns to
full-time employment and receives credited service but dies before he completes
120 days of creditable service, a determination must be made as to whether
survivor or disability benefits will be payable.
12. If a member applies for disability
retirement and is disapproved, he/she has the right to appeal that decision. If
a new application has been filed for the appeal and is approved, the effective
date of benefits will be determined by the date of the filing of the original
application.
13. Disability
protection continues for deferred members with 27 years of service if deferred
status was effective before July 1, 1971. (Deferred provision under old
law.)
14. An active member of the
System who applies for disability retirement is eligible to repay any refunded
service, provided that the member repays to the System the amount withdrawn,
plus interest, from the date of withdrawal to the date of final payment. (See
repayment of refund section).
15.
An active member of the System who applies for disability retirement is
eligible to pay contributions, and employer costs, plus interest, on service
rendered in a covered position after July 1, 1937, on which no applicable
contributions and employer costs have been paid and on which no service has
been credited, provided he completes all requirements. (See Back Contributions
section)
16. An active member of
the system who applies for disability retirement is eligible to file proof of
military service provided he completes the
EARLY RETIREMENT
(Amended by Act 282/95; Acts 282/95; Acts 992, 1074/97; Act
1521/99;
Acts 461, 1300/2001) (A.C.A. § 24-7-702)
1
(a) Early
retirement with a reduction in the benefit formula allows an active member who
has at least 25 years of credited service but who has not attained age 60 to
retire early on a reduced annuity.
(b) For active members, benefits are
effective the first day of the calendar month next following the latest of one
month after the receipt of the application for retirement, the member's
termination of active membership, or the member's completion of the required
credited service.
2.
(a) Early retirement allows an inactive
member who has 25 or more years of credited service but who has not attained
age 60 to retire early with a percentage reduction to produce a reduced
annuity.
(b) For inactive members,
effective date of benefits is the first day of the month following the date the
member's application is received in the Teacher Retirement office.
3. The reduction percentage is the
lesser of the member's age to 60 or his/her years of credited service to
28.
4.
(a) Effective July 1, 2001, a member who has
not attained normal retirement age (65) must terminate covered employment to be
eligible for early retirement.
(b)
A member shall not be considered to be terminated from employment for
retirement purposes if the person returns to a position that would otherwise be
covered by ATRS within thirty (30) days of the person's effective date of
retirement.
(c) A person failing to
meet these termination of employment requirements shall forfeit retirement
benefits until the requirements are met.
5. Effective July 1, 1995, a member retiring
with an effective date other than July 1, who has not completed his employment
contract and who wants to retain credit for service within the current fiscal
year may make application to retire one (1) full month prior to the month
benefits are to be effective. No salary earned during the fiscal year may be
used in the computation of benefits and no more than one-fourth (1/4) of a year
of service credit shall be given for each quarter completed, regardless of the
number of days worked in a quarter. If a member has signed an employment
contract for a fiscal year and has been paid in full for that year, benefits
shall not become effective until July 1.
SURVIVOR BENEFITS
DEFINITIONS
1.
Lump-sum death benefits of the deceased member's contributions plus interest
are payable if no survivor benefits are payable. If the spouse is qualified for
survivor benefits, he may request the lump-sum payment rather than monthly
benefits, provided no dependent children qualify for monthly benefits from the
account. Survivor benefits are payable to certain dependents upon the death of
an active member with five (5) or more years of credited service including
credited service for the year immediately preceding his death.
2. A dependent child shall be defined as:
(A) A natural child of the member;
(B) A child that has been made a dependent of
the member by adoption or other court action prior to the time of the death of
the member; or,
(C) A child under
the permanent care of the member prior to and at the time of death of the
member, which permanent care status shall be determined by evidence
satisfactory to the Board.
3. Fifty per cent (50%) dependency for
survivor benefits for parent is defined: If the annual income of the parent
(parents) was not greater than the amount contributed by the deceased member
for his support, the parent is considered 50% dependent for financial
support.
POLICIES
1.
Survivor Benefit Payments: Separate payments shall be made to the spouse and to
each child, rather than one lump-sum check payable to the spouse each
month.
2. 50% Dependency: If the
surviving parent did not have income exceeding the amount contributed to his
support by the deceased member during the preceding calendar year, then for the
purpose of the plan, he would be considered 50% dependent.
3. Specifics in the law dealing with the
rights of the spouse are construed to take precedence over designated
beneficiaries; provided that if at the time of the member's death there are no
dependent children and the surviving spouse who would otherwise receive the
annuity under this paragraph has filed with the system a signed waiver of his
right to the annuity and that waiver was in effect at the time of the member's
death, a lump sum distribution of the deceased member's accumulated
contributions, plus interest, may be made to any beneficiary or beneficiaries
so designated by the member before death.
4. If at the time of an active member's
death, a surviving spouse is listed on the death certificate, the Arkansas
Teacher Retirement System (ATRS )will search for the surviving spouse for up to
one year. If after one year, ATRS has not located the surviving spouse, nor
been contacted by the surviving spouse, ATRS will refund the member's account
to the designated beneficiary(s) or use statutory succession to make the
distribution (spouse, children, parents, estate).
5. Dependent child: Under part 2 (C) of the
definition of a dependent child, the Board requires that the child must:
(A) Meet requirements and qualify for
survivor benefits under social security;
(B) Have been claimed as a dependent by the
deceased member on his federal income tax for the immediately preceding
calendar year; and
(C) Have lived
in the same household for at least two (2) years immediately preceding death of
the member, unless the child is under two years of age.
(D) A child identified as a dependent will
remain so until his death or his marriage or his attainment of age 18,
whichever comes first; provided the age 18 maximum shall be extended as long as
the child continues uninterruptedly being a full time student at an accredited
secondary, or post secondary school (vocational technical school) or college or
university, but not beyond his attainment of age 23; or as amended by Act 549
or 1975 [A.C.A. 24-7-710 (c)]. A full time student is defined as one carrying
12 semester hours (eight trimester hours) in college or four hours per day in a
secondary or post secondary school.
6. If a surviving dependent child, who has
obtained or passed age 18 (and drawing benefits) becomes temporarily physically
or mentally incompetent, the Teacher Retirement Board can continue paying
benefits upon receipt of a doctor's certification that the child is not
competent to attend school for the period of one semester (term). At the
beginning of the next semester or term, A.C.A. 24-7-710 (c) will be
effective.
7. Certification of
attendance in an accredited school may be made by the dependent child in the
absence of a parent or legal guardian (after the dependent child reaches age
18).
8. Survivor benefits in case
of death of disability applicant: In the case of an active member who has
applied for disability retirement and dies before receipt of the first
retirement check, determination must be made on an individual basis as to
whether survivor benefits will be payable or whether the case will be processed
for disability retirement.
9.
Covered Salary: For the purposes of determining survivor benefits, covered
salary shall be that salary on which the member would have made contributions
had he lived through the end of the fiscal year as evidenced by the contract
salary or $7,800 maximum; provided, however, if a member who is making
contributions only on the first $7,800 of his total annual salary receives a
refund of his contributions and subsequently returns to covered service as a
non-contributory member, he shall be considered on full salary for reporting
purposes. However, should he wish to repay any refunds that include
contributory service, he must pay the additional contributions due to change to
full salary.
For a deceased member whose salary for reporting purposes is $7,800,
and who did not receive a refund, his beneficiary may elect to change the
member's status effective July 1, 1986, to the non-contributory plan and his
account shall be considered on full salary for reporting purposes. Additional
employer contributions for that period shall not be due. However, if the
beneficiary elects to make the change in the member's account, additional
employee and employer contributions must be paid on any service reported
between July 1, 1969, and June 30, 1986.
10. Payments of salary that are made after
the death of a member, but have been earned prior to death are subject to
Teacher Retirement deductions and reported in total salary and days of service
on the D-2a. Payments made by an employer subsequent to the death of an active
member that had not been earned but are made as a gratuity shall not be
included as salary and are not subject to deductions.
11. Active membership will continue beyond a
fiscal year in which credited service was rendered, provided the employing
institution certifies continuing employment, and leave of absence with pay upon
which the member is making contributions also continues active
membership.
12. If death-in-service
benefits are payable by more than one reciprocal system to eligible survivors
of a deceased member, such survivors shall not receive more as a percent of the
deceased member's final pay or as a minimum dollar amount than the largest
amount payable by a single reciprocal system. The Teacher Retirement System
will prorate minimum benefits payable with any other reciprocal system that has
a minimum benefit provision in its plan. Each reciprocal system shall pay only
a proportionate share of such minimum amount based on the ratios of such
service in such system to the total service in all reciprocal
systems.
13. When the member elects
to transfer from the Teacher Retirement System to the Public Employees
Retirement System under the provisions of Act 793 of 1977 the Public Employees
Retirement System becomes the system responsible for determining, upon the
death of a member, a survivor's eligibility for a refund of the member's
account, or monthly survivor benefits.
DEATH BENEFIT (Act 1022/97; Act 312/99, Act 359 of
2001*)
Effective July 1, 1997, Act 1022 of 1997, provides a lump sum death
benefit for active and retired members with five (5) or more years of credited
service payable in the order of statutory succession.
DEFINITIONS
1.
"Statutory succession" means the order in which benefits are paid: spouse,
children, parents, and estate.
2.
"Active member" means any person rendering service covered by the
System.
3. "Retired member" means
any person who receives an annuity paid by the System for service rendered in
the System. This excludes beneficiaries who receive a survivor benefit check
from a deceased member's account.
4. "Proof of death" is a death certificate or
a Proof of Death form completed by the funeral home.
POLICIES
1. If an
active member of the Arkansas Teacher Retirement System with five (5) or more
years of credited contributory service, including service for the year
immediately preceding his death, dies while in employer service before
retirement, then a lump sum of ten thousand dollars ($10,000) shall be paid to
any designated person(s) or entity(s), or in the order of statutory succession.
If the member had only non-contributory service, then the lump sum payable
shall be six thousand six hundred and sixty-seven dollars ($6,667). If upon his
death, the member had a combination of credited service, both contributory and
non-contributory, the lump sum will be prorated according to the ratio of the
member's contributory and non-contributory service. In addition, each surviving
dependent child will receive a lump sum benefit of ten thousand dollars
($10,000) upon the death of the active member.
2. Upon the death of a retirant whose annuity
is paid by the Arkansas Teacher Retirement System, a lump sum of ten thousand
dollars ($10,000) shall be paid to any person(s), or entity(s), or in the order
of statutory succession. If the retirant had only non-contributory service,
then the lump sum payable shall be six thousand six hundred and sixty-seven
dollars ($6,667). If upon his death, the retirant had a combination of credited
service, both contributory and non-contributory, the lump sum will be prorated
according to the ratio of the retirant's contributory and non-contributory
service. In addition, each surviving dependent child will receive a lump sum
benefit of ten thousand dollars ($10,000) upon the death of the
retiree.
3. The Board of Trustees
is authorized to set the level of the lump sum benefit to the current members
and retirants where the ratio between the contributory and non-contributory
benefits are maintained at a three-to-two (3:2) ratio and to a level to match
the benefits that the Board finds are appropriate for the System.
4. The lump sum payments shall be directly
payable from the System upon receipt and acceptance of the lump sum death
benefit form.
5. The Arkansas
Teacher Retirement System shall honor any and all federal and state income tax
laws regarding the payment of lump sum death benefits.
*Act 359 of 2001 authorized the Board of Trustees to increase the
active and retired contributory members' lump sum death benefit to $15,000 and
the active and retired non-contributory members' lump sum death benefit to
$10,000. However, the Act provided that no benefit enhancement under the act is
to be implemented if it would cause ATRS' unfunded actuarial accrued
liabilities to exceed a 30 year amortization. Further, if ATRS has unfunded
actuarial liabilities being amortized over a period exceeding 30 years, no
benefit enhancement is to be implemented until the unfunded actuarial accrued
liability is reduced to a level less than the standards prescribed by Arkansas
Code, Title 24.
ARKANSAS TECHNICAL AND COMMUNITY COLLEGE SYSTEM
(Act 1244 of 1991, Act 1784 of 2001)
A.C.A. §§ 24-7-801-808 & 6-53-301 et
seq)
DEFINITIONS
1.
"Community college" means an institution of higher education established or to
be established under Act 1244 of 1991 dedicated primarily to the educational
needs of the service area offering a comprehensive program including, but
without limitation, vocational, trade and technical specialty courses and
programs, college transfer courses, and courses in general adult
education.
2. "Branch campus of a
community college" means an institution with facilities located apart from the
community college campus but within the community college district.
3. "Satellite College" means an institution
located within a service area of a technical or community college but not
located within a community college district.
4. "Technical college" means an institution
of higher education established under Act 1244 of 1991 dedicated primarily to
the educational needs of the service area offering a comprehensive program
including, but without limitation, vocational, trade and technical specialty
courses and programs, courses in general adult education and courses comparable
in content and quality to freshman and sophomore courses which may carry
transfer credit to a four-year institution in a chosen course of
study.
POLICIES(Amended by Act 332 of 1995)
1. Effective July 1, 1991, the following
institutions are designated as technical colleges and become part of the
Arkansas Technical and Community College System under the coordination of the
State Board of Higher Education:
a) Black
River Vocational Technical College, Pocahontas
b) Cossatot Vocational Technical College, De
Queen
c) Gateway Vocational
Technical College, Batesville
d)
Mid-South Vocational Technical College, West Memphis
e) Oil Belt Vocational Technical College, El
Dorado
f) Ozark Vocational
Technical College, Melbourne
g)
Petit Jean Vocational Technical College, Morrilton
h) Pines Vocational Technical College, Pine
Bluff
i) Pulaski Vocational
Technical College, North Little Rock
j) Red River Vocational Technical College,
Hope
k) Twin Lakes Vocational
Technical College, Harrison
2. As provided in Act 1244 of 1991 or upon
approval of the State Board of Vocational Education, the board of trustees of
the receiving institution, The State Board of Higher Education and the North
Central Association - Commission on Institutions of Higher Education
thereafter, a state-supported vocational-technical institution may be
consolidated with a four-year institution or a two-year branch campus of a
four-year institution.
3. Following
approval by the North Central Association - Commission on Institutions of
Higher Education, and upon approval of the board of trustees of the receiving
institution, the following state-supported vocational-technical institutions
and four-year institutions or two-year branch campuses of a four-year
institution shall be consolidated: White River Vocational Technical School with
Arkansas State University - Beebe Campus.
4. Except as provided below, effective July
1, 1991, the Mountain Home Education Center (postsecondary only) (Baxter
County) shall be designated as a technical college. However, the advisory board
of the Mountain Home Education Center (Baxter County) may, by resolution prior
to July 1, 1991, elect not be a technical college.
5. If approved by majority vote of the
qualified electors of Boone County voting in a special election before July 1,
1991, then effective July 1, 1991, Twin Lakes Technical College shall become a
candidate for merger with North Arkansas Community College. However, if the
voters of Boone County do not approve the measure, then Twin Lakes Technical
College shall continue to be a technical college.
6. All employees who are employed by
state-supported postsecondary vocational-technical schools converting to an
institution under the Technical and Community College System or those employees
of a two-year branch campus of a four-year institution converting to a
technical or community college, shall become employees of the technical or
community college, branch campus of the community college or satellite campus
of the community college and shall continue their terms of employment and shall
have all rights and benefits of employment, including retirement benefits, that
they had when employed by the state-supported postsecondary
vocational-technical schools or by the two-year branch campus of the four-year
institution.
7. Each instructor and
administrative staff member of a state-supported postsecondary
vocational-technical school employed on July 1, 1991, shall within ninety (90)
days following the transfer to the Technical and Community College System or
upon transfer to the system with the approval of the board, elect either to
continue membership in the retirement plan in which he or she was enrolled
prior to that date or transfer to the Teacher Retirement System or any
alternate retirement plan currently established for the institution into which
it is being merged or consolidated. Once such election is made, the election is
irrevocable during the tenure of employment with the system.
8. Each instructor and administrative staff
member of a two-year campus of a four-year institution which is later converted
to a technical college or community college shall within ninety (90) days
following the appointment of the local board elect either to continue
membership in the retirement plan in which he or she was enrolled prior to the
conversion or to transfer membership to the Teacher Retirement System. Once
such election is made, the election is irrevocable during the tenure of
employment with the system.
9. Any
other employees of an institution transferring to the system under this act or
under the approval of the board, shall remain a member of the retirement system
to which they were enrolled prior to the transfer.
10. Arkansas Code of 1987 Annotated 24-7-1003
requires certain employees of state universities and community colleges to be
enrolled in the Arkansas Public Employees Retirement System (APERS), rather
than the Arkansas Teacher Retirement System (ATRS). Beginning November 20,
1997, those individuals first employed by the various colleges, universities,
or community colleges and are in pay grade of 17 and below will become members
of APERS. All members of APERS who are promoted to a position Grade 18 and
above will automatically become a member of ATRS or the College Alternate Plan
unless they choose to remain in APERS. (Revised 11/18/97).
11. Effective July 1, 2001, staff members who
elect to participate in an alternate retirement plan may elect to become
members of the retirement system. Service credit forfeited while a member of an
alternate retirement plan cannot be established in the retirement system. The
election to withdraw from the alternate retirement plan and become a member of
the retirement system shall be made by December 31, 2001, and notice of the
election shall be made in writing and filed with the retirement system and
disbursing officer of the employing college or university by December 31, 2001.
*
*The statutory basis for this subsection (A.C.A. 24-7-807(5)(D) was
first passed in 1995; subsequent legislation changed the dates from 1995 to
1997 to 1999 to 2001.
VOCATIONAL EDUCATION ALTERNATE PLAN
(Act 480 of 1983, Act 1784 of 2001 A.C.A.
§24-7-901-909
DEFINITIONS
1.
"Alternate Retirement Plan" means a retirement plan based on the purchase of
contracts providing retirement and death benefits for instructors and
administrative staff of the post-secondary vocational technical school of the
State of Arkansas and the staff of the Department of Workforce Education and
which has been approved by the board.
2. "School" means any post-secondary
vocational technical school established pursuant to Section 3 of Act 328 of
1957 for the vocational training of students.
3. "Board" means the state Board for
Workforce Education and Career Opportunities.
4. "Staff members" means both instructors and
administrative staff of a post-secondary vocational technical school and the
staff of the Department of Workforce Education who are eligible for membership
in the Teacher Retirement System.
5. "Director" means the Director of the
Department of Workforce Education.
POLICIES(Amended by Act 332 of 1995; Act 944 of
1997)
1. On or after July 1, 1983, the
Board may establish and maintain an Alternate Retirement Plan, which shall
authorize the purchase of contracts providing retirement and death benefits for
staff members. Under such plan, staff members shall contribute, to the extent
authorized or required, toward the purchase of such contracts, which shall be
issued to and become the property of, the participants. This Alternate
Retirement Plan shall be administered by the Board pursuant to a written
Alternate Retirement Plan document, which shall be formally adopted by the
Board prior to the establishment of the Alternate Retirement Plan.
2. All staff members shall participate in
either the Teacher Retirement System or an Alternate Plan or both, but
participation in both shall be limited to the circumstances described in number
3 below.
3. Any staff member who
has become fully vested in the Retirement system may elect to discontinue
contributing to the Teacher Retirement System, thus becoming an "inactive
member," and participate instead in an Alternate Retirement Plan. Such election
shall be in writing and shall be filed with both the Teacher Retirement System
and the Director within 90 days after establishment of the Alternate Retirement
Plan and prior to the staff member's participation in an Alternate Retirement
Plan. Under such circumstances, the staff member would be both an "inactive
member" of the Teacher Retirement System and an "active member" of the
Alternate Retirement Plan.
4. Any
staff member who has become fully vested in the Teacher Retirement System may
elect to participate in an Alternate Retirement Plan and receive all
accumulated contributions to the credit of such staff member in the member's
deposit account and have such member's credited service under the Teacher
Retirement System cancelled.
5.
Notwithstanding the foregoing provisions, any staff member who has participated
in the Teacher Retirement System for a period which is insufficient to allow
for full vesting of that staff member's Retirement system benefits may elect to
(1) continue as an "active member" in the Teacher Retirement System, (2)
discontinue membership in the Teacher Retirement System and transfer from the
Teacher Retirement System into his or her account with the alternate Retirement
Plan; i.e., roll over all contributions which the staff member has previously
made to the Teacher Retirement System, or (3) participate in the Alternate
Retirement Plan and receive all accumulated contributions to the credit of such
staff member in the member's deposit account. A refunds cancels such member's
credited service under the Teacher Retirement System.
6. No staff member may participate in an
Alternate Retirement Plan without giving prior written notice of his or her
election to participate in the Alternate Retirement Plan. Such notice of
election shall be made within 90 days of the date on which the Alternate
Retirement Plan goes into effect, provided such election was made by September
1, 1985, or, for new staff members, 90 days after the staff member's date of
employment. Such notice of election shall be in writing on a form established
by the Department of Workforce Education and filed with both the Director and
the Teacher Retirement System.
7.
No staff member who elects to change from participation in the Teacher
Retirement System to participation in the Alternate Retirement Plan, but
continues employment in a position covered by the Teacher Retirement System,
shall receive a year's service credit for less than a full year of
contributions. The provision for crediting a year's service credit for only 120
days work is applicable only to members whose employment is terminated during a
fiscal year.
8. Service for the
year in which a member changed to the Alternate Retirement Plan will be
adjusted by the Data Processing department of Teacher Retirement as follows:
|
Service Reported D2A for each year
|
Service Credit Allowed by TRS
|
Converted to Computer Days
|
|
0 - 44 days
|
0 year
|
0 - 29 days
|
|
45 - 89 days
|
¼ year
|
30 - 59 days
|
|
90 - 134 days
|
½ year
|
60 - 89 days
|
|
135 - 179 days
|
¾ year
|
90 - 119 days
|
|
180 days
|
1 year
|
120 days
|
9. Service for
the year in which a member changed to the Arkansas Teacher Retirement System
shall be credited as follows:
|
Transfer made to ATRS
|
Credit received in ATRS
|
|
7-1-97
|
120 days
|
|
8-1-97
|
120 days
|
|
9-1-97
|
90 days
|
|
10-1-97
|
90 days
|
|
11-1-97
|
60 days
|
|
12-1-97
|
60 days
|
10. Effective
July 1, 2001, staff members who elect to participate in an alternate retirement
plan may elect to become members of the retirement system. Service credit
forfeited while a member of an alternate retirement plan cannot be established
in the retirement system. The election to withdraw from the alternate
retirement plan and become a member of the retirement system shall be made by
December 31, 2001, and notice of the election shall be made in writing and
filed with the retirement system and the disbursing officer of the employing
college or university by December 31, 2001. *
*The statutory basis for this subsection (A.C.A. 24-7-907(5) was first
passed in 1993; subsequent legislation changed the dates from 1993 to 1995 to
1997 to 1999 to 2001.
Amended:June 15, 2004
