RULES
1.
ELIGIBILITY/QUALIFICATIONS
A.
Any active or inactive member who attains age 60 and has five (5) or more years
of actual and reciprocal service may voluntarily retire upon written
application filed with the System.
B. 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 System.
i. For active members,
annuities payable under the provisions of this rule shall commence the calendar
month following the member's eligibility to receive the annuity under §
24-7-701.
ii. For inactive members,
annuities payable under the provisions of this rule shall commence the calendar
month following the member's eligibility to receive the annuity under §
24-7-707.
C. 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 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 not be eligible to retire and
shall forfeit retirement benefits until the requirements are met. Moreover, any
retirement benefits received shall be repaid to the System.
D. 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/her contract is terminated
with employer consent before the year of service is rendered.
E. The official postmark date may be used as
the official received date of the retirement application.
F. 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.
G. A member may cancel an
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 shall again become
eligible for active membership in the System. This shall be in effect for the
1993-94 fiscal year and thereafter.
H. 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
The retirement benefits payable shall be the total number of
contributory years of credited service multiplied by 2.065% of the final
average salary, plus the total number of noncontributory years of credited
service multiplied by 1.305% of the final average salary
If an employer reports additional salary for a retirant, but the
result does not increase or decrease the annual benefits by $5.00 or more, the
contributions will be transferred from the Member's Deposit Account to the
Employer Accumulation Account without making any change in the member's
benefit. If the additional salary does increase or decrease the retirant's
annual benefit by $5.00, the benefits will be recomputed, and necessary changes
will be made in the member's benefit.
B.
Minimum Retirement Benefits
§
24-7-707 and §
24-7-713
A member who retires under §
24-7-701 shall receive no less
than the following benefits:
i. A
member who has at least ten (10) years of contributory credited service with
ATRS will receive not less than $1,800 per year; or
ii. A member who has at least five (5) years
of contributory credited service with ATRS will receive not less than $1,200
per year; or
iii. A member who has
at least ten (10) years of noncontributory credited service with ATRS will
receive not less than $1,128 per year; or
iv. A member who has at least five (5) years
of noncontributory credited service with ATRS will receive not less than $768
per year; or
v. A member who has a
mixture of contributory and noncontributory credited service greater than ten
(10) years but less than the minimum credited years listed above will receive a
prorated amount between $1,128 and $1,800 per year according to the
relationship between the member's noncontributory and contributory credited
service and ten (10) years of service; or
vi. A member who has a mixture of
contributory and noncontributory credited service greater than five (5) years
but less than the minimum credited years listed above will receive a prorated
amount between $768 and $1,200 per year according to the relationship between
the member's noncontributory and contributory credited service and five (5)
years of service.
In addition to the minimum benefit amount, a member who meets
eligibility requirements shall receive benefits applicable under A.C.A. §
24-7-713.
C.
Effective Date of Retirement Benefits (§
24-7-701)
A retirement benefit shall not begin earlier than July 1
following a fiscal year in which the member has signed an employment contract
unless the contract is terminated with employer consent before the year of
service is rendered. 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. (A.C.A. §
24-7-701)
For a member retiring with an effective date other than July 1
who has terminated employment and wants to retain credit for service within the
current fiscal year, 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. (A.C.A. §
24-7-701)
D.
Annual Cost of Living
Increase
i. On July 1 of each year, all
retirees who have received a retirement annuity for 12 months or longer shall
receive a 3% cost-of-living increase. (A.C.A. §
24-7-713)
ii. 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
of 1999; Acts 360 and 742 of 2001; Act 853 of 2003; Act 297 of 2007 [A.C.A.
§
24-7-713(b)(2)]
Members with five (5) or more years of actual service with ATRS
retiring after July 1, 1999, but prior to July 1, 2008, and their survivors and
beneficiaries, shall receive an additional benefit of $75.00 per month over and
above the regular annuity.
Members with ten (10) or more years of actual service with ATRS
retiring on or after July 1, 2008, and their survivors and beneficiaries shall
receive an additional benefit of $75 per month over and above the regular
annuity.
For the purpose of determining eligibility for the additional
benefit, "actual service" means service rendered in a position covered by ATRS.
"Actual service" does not include purchased or free credited service or
reciprocal service.
F.
Suspension of Benefits (Act 29 of 1999 and Act 97 of 2007) (A.C.A
§
24-7-209(a))
Subject to the minimum distribution provisions of §
24-7-730, 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.
DEFERRED RETIREMENT
A.C.A. §
24-7-707 as amended by Act 281 of 1995, Act 1053 of
1997 and Act 97 of 2007)
DEFINITION
Deferred member means an inactive member who is
eligible to receive benefits under A.C.A §
24-7-707,
RULES
1.
Effective July 1, 1998, a deferred member with five (5) or more years of actual
and reciprocal service may retire upon or after attaining age 60, provided he
or she is not employed in a position covered by another retirement plan
supported wholly or in part by state contributions.
2. Deferred benefits are effective the first
day of the month following the later of: the date the member's application is
received by ATRS or the month following the member's sixtieth
birthday.
3. A deferred member
under age 60 with 25 or more years of credited service may retire with a
reduction in benefits as provided in A.C.A. §
24-7-702.
4. A deferred member under age 60 with 25 or
more years of credited service may begin deferred benefits the first of the
month following the date the member's application is received by
ATRS.
5. A deferred member may
elect an option benefit amount provided for in A.C.A §
24-7-706 at the
time of filing the written retirement application.
6. A deferred member's annuity shall be a
life annuity provided by A.C.A §
24-7-705 plus the benefits applicable
under A.C.A. §
24-7-713.
7. A
deferred member shall receive benefits in accordance with the benefit program
in effect at the time of retirement (A.C.A. §
24-7-712).
8. A member who leaves a position covered by
ATRS, is employed by a reciprocal system, and establishes reciprocal service
with ATRS as the preceding system may become a deferred reciprocal member. A
deferred reciprocal member is entitled to the benefit formula in effect at the
time of retirement. Minimum benefit amounts shall apply as long as the member
has at least five (5) years of actual ATRS service. Retirement benefits shall
be based on the highest final average salary furnished by the respective
reciprocal systems involved.
9. In
the event of death of a deferred member, if no retirement application has been
received by ATRS, the accumulated contributions and regular interest shall be
paid to the designated beneficiary as provided in A.C.A §
24-7-711.
ANNUITY OPTIONS AND DISPOSITION OF RESIDUE AFTER
RETIREMENT
A.C.A. §
24-7-701, A.C.A. §
24-7-706, A.C.A. 24-7-709,
as amended by Acts 385 and 494 of 2005 and Act 97 of 2007)
DEFINITIONS
1.
Annuity Options - The
member's election at retirement of the annuity that shall be paid throughout
the retiree's life in accordance with A.C.A. §
24-7-706.
2.
Option Beneficiary - A
person(s) nominated by the retiree by written designation duly executed and
filed with ATRS at the time of retirement, who, if eligible, will receive
annuity payments under the annuity option chosen by the retiree after the
retiree's death.
3.
Marriage
Dissolution - A final decree of divorce, separate maintenance, or
annulment duly executed by a court of competent jurisdiction and filed of
record in the Office of the Ex-Officio Recorder.
4.
Person - an individual,
corporation, partnership, or other legal entity.
5.
Residue - The member's
accumulated contributions, including regular interest standing in the member's
credit at the time of his/her retirement.
6.
Residue Beneficiary - A
person(s) nominated by the member/retiree to receive the residue, if any, at
the termination of any option annuities payable on account of the retiree's
death under §
24-7-709.
RULES
Before the date the first payment of an annuity becomes due, a
member retiring on age and service or disability may elect to receive an
annuity payable as provided in one of the following:
1.
Option 1: A
straight life annuity payable monthly for the life of the retiree. Upon the
retiree's death, if the retiree has not received payments equal to the residue
amount, the residue remaining, if any, shall be paid to the residue
beneficiary. If no residue beneficiaries survive the retiree, the residue will
be paid to the retiree's estate.
2.
Effect of Option 1 Retiree's Death Within the First Year of
Retirement
If an Option 1 retiree dies within one year of retirement,
his/her spouse may elect to cancel the Option 1 annuity in effect and elect
Option A (100% survivor annuity) if:
A. The spouse otherwise qualifies as an
Option A beneficiary;
B. The spouse
is designated as the retiree's residue beneficiary; and
C. The election form to convert the annuity
to Option A is received by ATRS within 120 days of the retiree's death.
The election shall become effective the first day of the month
following receipt of the election form by ATRS. If the spouse elects Option A,
the residue, if any, will not be paid until the Option A beneficiary's
death.
3.
Option A: A 100% survivor annuity paid to the retiree
as a reduced annuity monthly for the retiree's life and, upon his/her death,
the reduced annuity shall be paid throughout the life of the retiree's option
beneficiary.
4.
Option B: A 50% survivor annuity paid to the retiree as
a reduced annuity monthly for the retiree's life and, upon his/her death, a
one-half reduced annuity shall be paid throughout the life of the retiree's
option beneficiary.
5.
Persons Eligible as Option A or B Beneficiaries
In order to be nominated as an Option A or B beneficiary, the
person must be one of the following:
A. The retiree's spouse (if the retiree has
been married to the spouse for at lease one (1) year prior to the first annuity
payment being paid to the retiree);
B. A person, aged 40 or older, who receives
more than one-half support from the retiree for a minimum of one (1) year
immediately preceding the first annuity payment being paid to the retiree;
or
C. A dependent child (regardless
of age) who has been ruled physically or mentally incapacitated by a court of
competent jurisdiction.
6.
Option C: A
reduced annuity payable for 10 years, then as a straight life annuity for the
remainder of the retiree's life. If the retiree dies before receiving 120
monthly annuity payments, the annuity shall be continued for the remaining 120
months to the retiree's Option C beneficiary.
A. If, after retirement, the Option C
beneficiary predeceases the retiree, the retiree may either nominate a
successor beneficiary or elect an Option 1 annuity. The election will be
effective the first day of the month following receipt of the election form by
ATRS.
B. If a retiree receives the
one hundred twenty (120) monthly payments under Option C, ATRS will return the
retiree to an Option 1 annuity for the remainder of his/her life.
C. An Option C beneficiary may not nominate a
contingent beneficiary should he/she not survive to draw the 120
payments.
7.
Payment of Residue Upon Option A, B, or C Retiree's Death
A. Residue Paid if No Option Is Payable
If a retiree who elected Option A, B, or C dies and no option
annuity is payable, the residue amount, if any, shall be paid to the member's
residue beneficiary on file with ATRS.
If the member's residue beneficiary does not survive or no
beneficiary is designated by the retiree at his/her death, the residue, if any,
shall be paid to the retiree's estate.
B. Residue Paid Upon Death of Option
Annuitant
If after a retiree dies, an option annuity is payable but the
option beneficiary dies prior to the retiree and the option beneficiary
receiving annuity payments equal to the residue amount, the residue, if any,
shall be paid to member's residue beneficiary. If no residue beneficiary is
nominated or survives upon the death of the option beneficiary, the residue
remaining, if any, shall be paid to the last surviving option beneficiary's
estate.
8.
Final Benefit Check
Benefits are payable through the month in which the last option
beneficiary's death occurs. If the option beneficiary dies prior to receiving
the last check, ATRS will pay the final check in the normal manner paid prior
to death. If payment of the final check in the normal course becomes
impossible, the final annuity check will be returned to the System.
9.
Effect of Qualifying
Events on the Retiree's Annuity Options
A. Cessation of Marriage to a Spouse Selected
as the Retiree's Option Beneficiary at Retirement
If a retiree receiving an Option A, B, or C annuity ceases to be
married to a spouse nominated as his/her option beneficiary at retirement, the
retiree may designate an eligible contingent option beneficiary and continue
the same option or elect an Option 1 annuity. The election must be submitted to
the System on an approved form. The change shall be effective the month
following receipt of the election.
A retiree may cease to be married under this rule by reason of
the spouse's death, divorce, or other marriage dissolution.
B. Retiree's Marriage after Retirement
A retiree who is receiving an Option 1 annuity and marries after
retirement may cancel the Option 1 annuity and elect Option B providing a 50%
survivor annuity for the life of the spouse. The election must be filed with
ATRS on an approved form within 6 months from the date of marriage to be
effective.
10.
Change of Option Election Allowed Within One (1) Year of
Retirement
A member who retires on or after July 1, 1994, may cancel the
annuity election made at retirement and elect a different option provided
that:
A. The election is received by
ATRS on an approved form within one (1) year from the date of
retirement;
B. The retiree repays
ATRS the difference between the annuity received under the prior option and the
annuity elected from the date of retirement, plus regular interest (8% after
July 1, 1998); and
C. The change of
annuity option is made only once during the first year of retirement and is
effective retroactive to the commencement date of the annuity.
11.
Beneficiaries
Designated at Retirement
All members who elect Option A, B, or C shall designate, in
writing, and file with the System an option beneficiary prior to the receipt of
the first annuity check.
12.
Option Beneficiaries Prohibited
from Nominating Beneficiaries
Option beneficiaries shall not be eligible to nominate a member's
residue, lump sum, or contingent annuity beneficiaries or otherwise affect the
annuity option selected by the member.
13.
Annuities Paid Reduce Residue
Amount
When a member retires, any amounts paid to the retiree and
his/her option beneficiaries as an annuity shall act to reduce or eliminate the
disposition of residue that would be payable under §
24-7-709 upon the
retiree's death.
14.
Eligible Residue Beneficiaries
Any "person" as defined in this policy is eligible to be
designated by the member to receive the residue, if any, payable upon the
member's death including: individuals; trusts; estates; corporations; and other
legally-recognized entities.
RESCINDING RETIREMENT
A.C.A. §
24-7-717; §
24-7-702) (Amended by Acts 435 and
478 or 1993; Act 481 of 2001; Act 97 of 2007) A retired member of the System
may rescind his/her decision to retire and may become an active member upon
reemployment by a covered employer subject to the following Rules.
RULES
1. A
retiree rescinding the decision to retire shall file a written rescission on an
approved form with the System.
2.
A. For any school year in which a retirant
takes a position in a public school, the rescission form shall be filed with
the System office on or before June 30 of the previous year.
B. Should a retiree fail to meet the deadline
set out in No. 2A, the school district may file an appeal for a waiver of the
required filing date.
3.
The rescission shall become effective the month following the date the written
rescission is received by the System.
4. Any retirement annuity being paid to the
retiree by the System shall be terminated upon the effective date of the
rescission.
5. Upon rescission, the
former retiree shall be considered an active member and shall accrue additional
service subject to the following conditions:
A. If reemployment terminates before the end
of the fiscal year in which the former retirant has accumulated at least three
(3) years of actual service, the former retirant shall become a retired member,
and the payment of annuity shall resume upon such termination. The former
retirant shall be entitled to receive a refund of any member contributions made
during the reemployment period.
B.
If reemployment terminates after the end of the fiscal year in which the former
retirant has accumulated at least three (3) years of actual service, upon
termination of reemployment, the rescinded member shall become a retiree and
receive an annuity calculated according to the benefit formula based upon the
salary and service credit earned during recission.
C. All rescinding members who reenter the
System will be enrolled in the plan that he or she was in prior to retirement.
All rescinding non-contributory members who reenter the System after June 30,
2007, may elect to make member contributions.
6. If a retiree has previously rescinded
his/her decision to retire and has become an active member by reemployment, but
after becoming a retiree and before rescinding, had been employed in a position
covered by the System, as an active member he/she shall be eligible to purchase
such previous service by:
A. Fulfilling the
requirements set out in Sec. §
24-7-717(e)(2), which is No.5B of this
rule;
B. Returning to the System
all retirement benefits received during such employment, together with regular
interest, from the date of receipt of such payments to the date of repayment in
full; and
C Paying to the System both member and employer contributions for
the previous service rendered after becoming a retiree but before rescinding,
plus interest, from the date of reemployment to the date of payment in
full.
7.
A. An early retiree under A.C.A. §
24-7-702 may rescind the decision to retire and become an active member upon
reemployment for the purpose of participating in T-DROP under the following
conditions:
i. Retirement rescission form must
be filed with the System;
ii. The
rescission shall become effective the month following the date the written
rescission is received by the Board;
iii. Any annuity benefit formerly due from
the System shall be terminated upon the effective date of the rescission;
and
iv. Reemployment must be for at
least three (3) years.
B. When the early retiree who has rescinded
accumulates the minimum number of years required for participation in T-DROP,
the member will enter T-DROP at that time.
C. The early retiree's T-DROP account will be
based upon his/her voucher amount at the time of his eligibility to participate
in the T-DROP.
D. If the early
retiree who has rescinded terminates covered employment before the completion
of three (3) years of actual service, the following will apply:
i. The retirement annuity will resume at the
rate effective at the time of rescission (including any cost of living
adjustments and legislative adjustments);
ii. Member contributions remitted while
rescinded will be refunded;
iii.
Any funds accumulated in the T-DROP account will be forfeited (Act 481 of
2001).
E. When the early
retiree who has rescinded completes three (3) full years of service, he/she may
retire and receive benefits accrued from both accounts (T-DROP and retirement)
as provided under normal T-DROP provisions.
TEACHER DEFERRED RETIREMENT OPTION PLAN
(T-DROP)
(Amended by Act 188 of 2005; Acts 97 and 298 of 2007)
DEFINITIONS
1.
T-DROP means the Teacher
Deferred Retirement Option Plan established by the System pursuant to Act 1096
of 1995.
2.
T-DROP Plan
deposits means the deposits made to each participant's T-DROP account
pursuant to A.C.A. §
24-7-1306.
3.
Plan interest means the rate
per annum, compounded annually, as the Board shall adopt at the end of each
fiscal year, credited annually on each T-DROP participant's T-DROP account. The
interest rate shall be 2% less than the System's average rate of return with a
maximum of 6% and minimum of 2%. Effective for fiscal years 2003-2004 and
2004-2005, the Board will determine the interest rate for the fiscal year based
upon the rate of return for the twelve-month period ending March 31. The
initial calculation of this rate shall begin March 31, 2004, for interest to be
paid for the 2003-2004 fiscal year. Effective for fiscal year 2005-2006 and
after, the Board will determine the interest rate for the next fiscal year
based upon the rate of return for the immediately preceding twelve-month period
ending March 31 prior to the start of such fiscal year. The initial calculation
of this rate shall begin March 31, 2005, for interest to be paid in the
2005-2006 fiscal year.
4.
DROP means a deferred retirement option plan created by law under
the ATRS or a reciprocal system.
T-DROP PARTICIPATION and ACCOUNT CREDIT
Effective July 1, 1995, in lieu of terminating employment and
retiring under §
24-7-701, an active member of the System may elect to
participate in the T-DROP and continue to work in covered employment. If a
member elects to participate in T-DROP, the annuity deposits will not be
subject to the earnings limitation restriction of Arkansas Code §
24-7-708, and he/she will continue to work in a position covered by the System,
deferring receipt of retirement benefits until a later date.
During participation, ATRS shall credit each member's T-DROP
account with Plan deposits and Plan interest. Plan interest will be interest
credited at the end of each fiscal year in the account at the rate set by the
ATRS Board.
The Plan interest credited shall be set by the Board of Trustees
based upon the principles of cost-neutrality and actuarial soundness of T-DROP
and the System.
In setting the T-DROP interest rate, the Board shall determine
the interest rate annually for the following fiscal year. The Plan interest
rate determined by an affirmative vote of the Board shall be final and binding
upon the System and shall not be adjusted based on any revised rate of return
reported after that date.
RULES
1. To participate in the T-DROP, the member
must have twenty-eight (28) or more years of service credit in the Arkansas
Teacher Retirement System.
2. To
participate in the T-DROP, the member will make the election on an application
form approved by the System.
3.
Upon submission, the member's application will be reviewed, and the System
shall determine if the member meets the eligibility requirements specified in
§
24-7-1302.
4. If the member
is deemed eligible to participate, T-DROP participation will begin the July 1
after the application is approved.
5. The member's T-DROP benefit will be the
monthly straight life annuity benefit to which he or she would have been
entitled had the member retired under §
24-7-701 reduced as specified in
by No. 7 below. the T-DROP deposit will not include the benefits provided in
A.C.A. §
24-7-713(b) ($75.00
stipend).1
6. T-DROP deposits shall be a percentage of
the T-DROP benefit, as follows:
A. One hundred
percent (100%) reduced by the product of one percent (1.0%) multiplied by the
number of years of contributory service credit and fractions thereof,
plus,
B. One hundred percent (100%)
reduced by the product of six-tenths percent (0.6%) multiplied by the number of
years of noncontributory service credit and fractions thereof.
C.
i.
In the event a member whose effective date in the T-DROP is
before
September 1, 2003, has more than thirty (30) years of service,
the years of service above thirty (30) years shall be reduced by one-half of
one percent (0.5%) for contributory years and three-tenths of one percent
(0.3%) for noncontributory years.
1 A T-DROP member who entered the T-DROP plan
effective June 1, 2001, or earlier will receive the benefit provided in A.C.A.
§
24-7-713(b) ($75.00 stipend) over and above the regular annuity upon
retirement regardless of the years of credited service with ATRS.
ii. Beginning July 1, 2001, when a
participant whose effective date in the T-Drop is before September 1, 2003,
reaches normal retirement age, the plan deposits shall be 100% with no
reduction.
iii. For any member
whose effective date in the T-Drop is before
September 1, 2003, or after, and who has more than thirty (30)
years of service, the plan deposits for the years of service above thirty (30)
years shall be reduced under Nos. 7A and 7B.
iv. For any member whose effective date in
the T-Drop is September 1, 2003, or after, the plan deposits for a participant
who reaches normal retirement age shall continue as reduced under Nos. 7A and
7B.
v. T-DROP plan deposits will
not be subject to the earnings limitation in §
24-7-708.
7. A
participant's plan deposit will incur an additional reduction of 0.5% for each
month the member lacks having thirty (30) years of credited service.
8. A T-DROP participant may elect an annuity
options provided in A.C.A. §
24-7-706. The election shall be made at the
time the member separates from service and is granted a monthly retirement
benefit.
9. A member's
participation in T-DROP shall not exceed ten (10) years. Upon completion of 10
years of participation, all monthly deposits and accrued interest shall cease
and no more than ten (10) years of plan deposits or interest shall be credited
to any participant's T-DROP account.
If a participant continues covered employment after completing 10
years in T-DROP, the T-DROP benefits payable at retirement will be based on the
account balance at the end of the tenth year.
10. The annuity upon which T-DROP deposits
are based shall receive the cost-of-living increase provided for in A.C.A.
§
24-7-713(a) that shall be subject to the reduction applicable to all
plan deposits in No. 7 above..
11.
The election to participate in the T-DROP is irrevocable.
12. In the event a T-DROP participant applies
for disability benefits under A.C.A. §
24-7-704, A.C.A. §
24-7-701
shall apply, and no disability benefits shall become payable.
13. During for after completion of T-DROP
participation, a member shall not receive service credit under in ATRS or any
other state-supported retirement system.
14. A member may not rescind T-DROP
participation or retirement after T-DROP participation for purposes of accruing
additional service credit for retirement.
15. If a T-DROP participates elects to retire
and a distribution of the T-DROP
account is made by the System, the participant shall not be
allowed to reenroll in T-DROP.
16. As soon as possible after the end of each
fiscal year of participation in the T-DROP, the participant shall be furnished
an annual statement of his/her T-DROP account.
17. At the time the member separates from
service and is granted a monthly retirement benefit, participation in the
T-DROP shall cease.
18. When the
member's participation in the T-DROP ceases, the member may elect to receive
the balance in the T-DROP account as a lump sum or in a monthly benefit paid
according to the annuity option elected by the member for voluntary retirement.
This T-DROP amount, if annuitized, shall be in addition to the monthly benefit
to which the member became entitled under the age and service retirement
provisions.
19. A lump-sum
distribution of a member's T-DROP account balance is eligible to be rolled over
into a qualifying retirement plan. The System may only roll over the T-DROP
account balance into one qualifying plan. A participant must elect to roll over
a minimum of $2,500 in order to request a rollover of the T-DROP account
balance. All rollovers must be done in accordance with Policy No.
8-4.
20. If the member elects to
receive the balance in the T-DROP account as a monthly benefit, a factor
approved by the Board of Trustees shall be used to determine the conversion of
the T-DROP balance to a lifetime monthly benefit amount.
21. When participation in the T-DROP ceases,
the member shall receive age and service retirement benefits as if the member
had retired on the T-DROP completion date.
22. The T-DROP is intended to operate in
accordance with Section 415 and other applicable sections of the IRS Code. Any
provision of the T-DROP found to be in conflict with an applicable provision of
the IRS Code shall be declared null and void.
23. If a member separates from covered
employment but does not apply for monthly retirement benefits, the T-DROP
monthly deposit and accrued interest shall cease the month of separation from
service. No deposits or interest will be credited to the members account for
the duration of the separation. Upon returning to covered employment, the
monthly deposits and interest will resume. Upon application for retirement,
benefits will be paid according to the account balance at the time of
separation from service.
24. If a
T-DROP participant leaves covered employment to serve, on a voluntary or
involuntary basis, in the uniformed services of the United States and returns
to service with a school, the member shall be treated as not having incurred a
break in service with the employer. The employer shall certify to the System
that reemployment was in accordance with the requirements set forth in Section
4312 of
P.L. 103-353, the Uniformed Services Employment and Reemployment Act
(USERA) of 1994.
Under this subsection, uniformed services of the United States
are limited to the armed forces, the Army, and the Air National Guard when
engaged in active duty for training, inactive duty training, or full-time
National Guard duty, the commissioned corps of the Public Health Service, and
any other category of persons designated by the President in time of war or
emergency.
25. The ATRS
Board of Trustees is authorized to modify, amend, or promulgate additional
policies in order to make the T-DROP cost-neutral to the System.
DEATH OF A T-DROP PARTICIPANT PRIOR TO
RETIREMENT
1. In the event a
T-DROP participant dies, the benefits payable from the T-DROP account shall be
determined according to A.C.A. §
24-7-710.
2. A T-DROP participant's surviving spouse
may choose to receive the T-DROP benefit in a lump sum. If the spouse elects a
lump-sum payment of the T-DROP balance, the survivor annuities payable under
§
24-7-710 shall be calculated on the service credit and salary earned by
the member prior to participating in T-DROP.
3. For the purposes of A.C.A. §
24-7-709
related to disposition of residue, any amount received from the T-DROP account,
either in the form of a lump sum or annuity payments, shall be considered to be
annuity payments received by the member or his or her designated beneficiary
and shall act to reduce or eliminate the disposition of residue payable under
A.C.A. §
24-7-1306(b).
DROP PARTICPATION UNDER RECIPROCAL SYSTEMS
1. If a reciprocal system offers a
DROP for its members, both service in ATRS and the reciprocal system may be
counted to meet the minimum service credit requirements for participation under
each system's DROP.
2. The benefit
payable by the reciprocal system shall be based on the DROP provisions of each
system. The final average salary used to determine plan deposits shall be that
of the reciprocal system which furnishes the highest final average salary at
the time of retirement. Each reciprocal system shall use the method of
computing final average salary stipulated by its law. Salaries earned in the
Arkansas Judicial Retirement System and alternate retirement plans shall not be
used in computing final average compensation.
3 Plan deposits and plan interest credited to
the DROP account will be paid under the deferred retirement option program in
effect for that system.
4. The
Board of each reciprocal system shall promulgate rules and regulations as are
necessary to coordinate its benefits with any system providing a deferred
retirement option plan.
Approved: June 13, 1995
Amended: July 30, 1997
June 17, 2003
February 15, 2005
July 18, 2005
April 26, 2007
