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Arkansas General Assembly· HB 1154Notification that HB1154 is now Act 222

An act TO ENACT THE ARKANSAS TEACHER RETIREMENT 10 SYSTEM'S GENERAL OMNIBUS, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                     A Bill

2

3 Regular Session, 2025                                            HOUSE BILL 1154

4

5 By: Representative Warren

6 By: Senator K. Hammer

7

8                            For An Act To Be Entitled

9   AN ACT TO ENACT THE ARKANSAS TEACHER RETIREMENT

10  SYSTEM'S GENERAL OMNIBUS; TO AMEND THE LAW CONCERNING

11  RECOGNITION OF FEDERAL RETIREMENT PROGRAMS,

12  CONTRIBUTORY AND NONCONTRIBUTORY MEMBERSHIP STATUS,

13  TEMPORARY WAIVERS FOR ELECTRONICALLY REPORTING AND

14  PAYING CONTRIBUTIONS TO THE ARKANSAS TEACHER

15  RETIREMENT SYSTEM, OPTION A AND OPTION B ANNUITY

16  ELECTIONS AND DISTRIBUTIONS UNDER THE ARKANSAS

17  TEACHER RETIREMENT SYSTEM, THE EFFECTIVE DATE OF

18  SURVIVOR BENEFITS UNDER THE ARKANSAS TEACHER

19  RETIREMENT SYSTEM, RESIDUE DISPOSITIONS UNDER THE

20  ARKANSAS TEACHER RETIREMENT SYSTEM, ELIGIBILITY TO

21  PARTICIPATE IN A PSHE PLAN, AND OTHER VARIOUS

22  PROVISIONS APPLICABLE TO THE ARKANSAS TEACHER

23  RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY; AND FOR

24  OTHER PURPOSES.

25

26

27                                      Subtitle

28                       TO ENACT THE ARKANSAS TEACHER RETIREMENT

29                       SYSTEM'S GENERAL OMNIBUS; AND TO DECLARE

30                       AN EMERGENCY.

31

32 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

33

34  SECTION 1. Arkansas Code � 24-1-107(b)(1)(B)(i), concerning the

35 recognition of federal retirement programs, is amended to read as follows:

36                       (B)(i) A member of the Arkansas Teacher Retirement System

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1 shall receive credit for the member's federal service upon the payment of the

2 cost of service under � 24-7-502(b) and as actuarial equivalent of the

3 member's benefits to the Arkansas Teacher Retirement System and the

4 fulfillment of all other requirements as may be prescribed by the Board of

5 Trustees of the Arkansas Teacher Retirement System.

6

7   SECTION 2. Arkansas Code � 24-7-406(e)(1)(C)(iii), concerning

8 contributory and noncontributory status under the Arkansas Teacher Retirement

9 System, is amended to read as follows:

10             (iii) Effective July 1, 2021, From July 1, 2021, to

11 June 30, 2025, regardless of an earlier election to be a noncontributory

12 member of the system, an active member whose status later changes from

13 nonteacher status to administrator or teacher status under a contract for one

14 hundred eighty-five (185) days or more shall become a contributory member of

15 the system otherwise provided for in this section.

16

17  SECTION 3. Arkansas Code � 24-7-411(f), concerning temporary waivers

18 for electronically reporting and paying contributions to the Arkansas Teacher

19 Retirement System, is repealed.

20  (f)(1) An employer shall submit a written request for a temporary

21 waiver to the board by July 1, 2022, when the employer is unable to:

22             (A) Report contributions electronically through the

23 system; or

24             (B) Pay contributions to the system by electronic

25 transfer.

26             (2) A request for a temporary waiver submitted under subdivision

27 (f)(1) of this section shall include a timeline for when the employer will be

28 able to comply with the payment and reporting requirements under this

29 section.

30

31  SECTION 4. Arkansas Code � 24-7-706(a)(4)(B)(iii), concerning the

32 distribution of an Option B annuity under the Arkansas Teacher Retirement

33 System, is amended to read as follows:

34             (iii) Upon the death of a retiree, if more than one

35 (1) dependent child is designated as the retiree's Option B beneficiary and a

36 spouse is not designated as the retiree's Option B beneficiary, the retiree's

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1 reduced annuity one-half (1/2) of the retiree's reduced annuity shall be paid

2 in equal shares to each dependent child designated as the retiree's Option B

3 beneficiary.

4

5   SECTION 5. Arkansas Code � 24-7-706(d)(3), concerning a residue

6 beneficiary's eligibility to elect an Option A annuity under the Arkansas

7 Teacher Retirement System, is amended to read as follows:

8             (3) The election form must be received by the system within one

9 hundred twenty (120) days of the death of the retiree by the end of the

10 fourth full calendar month following the retiree's death.

11

12  SECTION 6. Arkansas Code � 24-7-706(g), concerning the effective date

13 of survivor benefits under the Arkansas Teacher Retirement System, is

14 repealed.

15  (g) A retiree's effective retirement date and the date when survivor

16 benefits under this section are payable shall be determined by the law in

17 effect at the time of the retiree's death.

18

19  SECTION 7. Arkansas Code � 24-7-709(a)(4), concerning the disposition

20 of retiree residue under the Arkansas Teacher Retirement System, is repealed.

21            (4) If all designated beneficiaries predecease the retiree, the

22 residue shall be paid to the estate of the most recently deceased designated

23 beneficiary.

24

25  SECTION 8. Arkansas Code � 24-7-710(b)(1)(B)(i)(a), concerning the

26 effective benefit date of a surviving spouse annuity under the Arkansas

27 Teacher Retirement System, is amended to read as follows:

28                              (a) Accumulated twenty-five (25) years or more

29 of credited service and qualified as eligible to receive a retirement annuity

30 under �� 24-7-701 and 24-7-702 � 24-7-701 or � 24-7-702; or

31

32  SECTION 9. Arkansas Code � 24-7-1605(a)(2), concerning the eligibility

33 of a new employee of a PSHE employer to participate in a PSHE plan, is

34 amended to read as follows:

35            (2) A new employee of a PSHE employer may participate in the

36 PSHE plan if the employee:

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1                 (A) Is benefits-eligible as determined by the PSHE

2 employer;

3                 (B) Is a vested member of the Arkansas Teacher Retirement

4 System at the time of initial employment; Is either:

5                           (i) A vested member of the Arkansas Teacher

6 Retirement System at the time of initial employment; or

7                           (ii) A non-vested member of the system who meets the

8 requirements of a less restrictive PSHE plan adopted by the specific PSHE

9 employer.

10                (C) Is not a vested member of the system but meets the

11 requirements of a less restrictive PSHE plan adopted by the specific PSHE

12 employer; and

13                (D)(C) Signs an irrevocable PSHE plan participation form

14 provided by the system.

15

16  SECTION 10. EMERGENCY CLAUSE. It is found and determined by the

17 General Assembly of the State of Arkansas that the operations of a state

18 public retirement system are complex; that the Arkansas Teacher Retirement

19 System must be able to meet the needs of its members as anticipated by the

20 General Assembly; that certain provisions of the Arkansas Teacher Retirement

21 System Act, � 24-7-201 et seq., need immediate revision and updating to bring

22 them into conformance with sound public pension policy and actuarial

23 requirements; that the revisions and updates are of great importance to

24 members of the Arkansas Teacher Retirement System and to other citizens of

25 the State of Arkansas; that as the Arkansas Teacher Retirement System

26 operates on a fiscal year of July 1 to June 30, an effective date of July 1,

27 2025, is necessary in order to allow the provisions within this act to begin

28 on the first day of the fiscal year and to allow for a structured and proper

29 administration of the procedures referenced in this act; that the updates and

30 revisions to the Arkansas Teacher Retirement System Act are of great

31 importance for actuarial purposes and for the improvement and protection of

32 member benefits under the Arkansas Teacher Retirement System; and that this

33 act is necessary in order to maintain an orderly system of benefits for the

34 members of the Arkansas Teacher Retirement System. Therefore, an emergency

35 is declared to exist, and this act being immediately necessary for the

36 preservation of the public peace, health, and safety shall become effective

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