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 ATRS
1 -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).
2.
A.
Employers and retirants must report immediately, upon acceptance of employment
in a position covered by ATRS, a return to covered employment by a retirant. A
Statement of Employment form must be completed immediately by employers and
retirants upon acceptance of employment for each retirant hired in a position
covered by ATRS.
B. Employers will
report monthly all retirants who have returned to full or part-time employment
in an ATRS covered position and who have not rescinded their retirement. The
monthly report will be filed on a Retired Member Returned To Service form,
which will be furnished by ATRS.
C.
In the event that both the employee and the employer fail to notify the Teacher
Retirement System of a retiree's return to service, and benefits are paid
illegally due to such lack of notice, the Teacher Retirement System shall delay
restoration of benefits until all funds paid illegally have been recovered
either through direct payment by the retiree or through delay in restoration of
benefits by the System.
3.
A.
Effective July 1, 1977, a retirant may receive remuneration as an employee from
any private employer or as a member of the General Assembly without any effect
on his/her annuity.3
B. Effective July 1, 1991, an age and
service
retiree may be employed by a public employer whose employees are not covered by
ATRS without any effect on his/her annuity.
3 (From 7-1-71 through 6-30-77 this "exemption" covered employees
receiving remuneration "from any other public employer or private employer.")
4. During any
period of employment in a position covered by the System (which is not covered
by Act 39 of 1989 [A.C.A. § 24-7-717(a)--(e) Rescission of Termination]),
an age and service retiree shall not accrue additional service credit in the
Arkansas Teacher Retirement System.
5.
A.
Effective July 1, 1995, Act 1293 of 1995 provided that if a retirant is
employed in a covered position by a state college, university, or
vocational-technical school, his annuity shall not be subject to the
limitations provided in No. 1 above.
B. Effective July 1, 1997, Act 384 of 1997
repealed Act 1293 of 1995, making subject the ATRS earnings limitation the
annuity of a retirant who is employed in a covered position by a state college,
university, or vocational-technical school, as provided in No.1
above.
WAIVER OF EARNINGS LIMITATION
1.
A. In
accordance with Act 30 of 1999 and Act 1146 of 2001 as amended by Act 911 of
2005 and with rules and regulations adopted by the State Board of Education,
the Arkansas Department of Education (ADE) may request of the ATRS Executive
Director a waiver of the conditions subjecting annuities to the ATRS earnings
limitation.
B. All requests for
waiver must originate with ADE and must be submitted for approval by ATRS
within sixty (60) days of employment. If approved, the waiver shall be
effective for one (1) year from the date of hire or until the end of the
current fiscal year, whichever comes first, with the option to renew annually
for up to a total of three (3) years as requested by ADE. Renewals must also be
approved by the Executive Director of ATRS.
2. Effective July 1, 2005, under Act 911 of
2005, the ATRS Executive Director is authorized to take appropriate action on
waivers of the ATRS earnings limitations requested by the Department of
Education if the retiree is hired by a public school district due to a shortage
of certified teachers in a critical academic area in which the retiree is
certified.
3. Critical academic
areas in which there is a shortage of certified teachers shall be determined
annually by the State Department of Education.
4. Employers shall maintain audit files
identifying personnel granted a waiver and documenting the reasons for the
waiver and will be responsible for reporting to ATRS, all retirees who have
returned to employment under these provisions.
5. Beginning July 1, 2005, under provisions
of Act 911 of 2005, for any retired member employed in a position covered by
the System pursuant to a waiver, the amount paid to the System shall be equal
to the combined employee and employer contributions rate in effect at the time
of the employment and shall be remitted by the employer. The contributions
shall be paid on all salary earned in the fiscal year and shall not be
collected from the employee. These amounts shall be recorded in the ADE Waiver
Income Account.
DISABILITY RETIRANT
Disability Retiree Employed Full-Time
1. When a disability retiree is employed in a
position covered by the Teacher Retirement System as a full-time employee, the
Teacher Retirement System is required to remove the retiree from the disability
payroll. It is the responsibility of the employee and employing agency to
report such employment to the retirement office immediately. The employing
agency will report salary and service as described on page 10-2-2 under Age and
Service Retirant, Nos. 2A and 2B above. Unless the retiree was a member of the
noncontributory plan, it is also the responsibility of the employing agency to
withhold employee contributions.
2.
If the retiree completes a minimum of 120 days or more during a fiscal year in
Arkansas, thus adding a year's service credit, the retiree can then again make
application for disability or age and service retirement, and the benefits will
be recomputed based on the additional year or years of service
credit.
3. Full-time employment is
defined as a member working at least 480 hours in a fiscal year.
4. If a disability retirant under age 60
becomes employed as a full-time employee 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 Member's Deposit Account, and the
person shall immediately again become a member of the System, if
eligible.
5. If a disability
retirant returns to full-time employment and receives credited service but dies
before completing 120 days of creditable service, a determination must be made
by the System as to whether survivor or disability benefits will be
payable.
Disability Retiree Employed Part-Time
1. Part-time employment is defined as a
disability retiree working less than 480 hours in a fiscal year.
2. A disability retiree employed part-time
will be subject to the same earnings limitation policy as age and service
retirees (see above); however, a waiver of the earnings limitation is not
available for disability retirees.
3. A disability retiree shall not be
permitted to purchase or establish service credit when employed in a part-time
position.
4. A disability
retiree
shall not be given
service credit during the time in which he/she receives a
disability annuity (Act 541 of 1977).
Amended: June 15, 2004
July 18, 2005