An act TO AMEND THE LAW CONCERNING THE ELECTION OF A 10 DISTRIBUTION OPTION UNDER THE TEACHER DEFERRED 11 RETIREMENT OPTION PLAN, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                A Bill

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3 Regular Session, 2025                                            HOUSE BILL 1158

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5 By: Representative Perry

6 By: Senator F. Love

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8                           For An Act To Be Entitled

9           AN ACT TO AMEND THE LAW CONCERNING THE ELECTION OF A

10          DISTRIBUTION OPTION UNDER THE TEACHER DEFERRED

11          RETIREMENT OPTION PLAN; TO DECLARE AN EMERGENCY; AND

12          FOR OTHER PURPOSES.

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15                                 Subtitle

16                       TO AMEND THE LAW CONCERNING THE ELECTION

17                       OF A DISTRIBUTION OPTION UNDER THE

18                       TEACHER DEFERRED RETIREMENT OPTION PLAN;

19                       AND TO DECLARE AN EMERGENCY.

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

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23  SECTION 1. Arkansas Code � 24-7-1308(b), concerning distribution

24 options under the Teacher Deferred Retirement Option, is amended to add an

25 additional subdivision to read as follows:

26          (3) A member may cancel his or her original election and elect

27 another distribution option under subdivision (b)(1) of this section if the

28 member:

29                       (A) Did not elect to receive all or a part of the balance

30 in the plan account as a lump sum payable through an Internal Revenue Code

31 eligible rollover transaction;

32                       (B) Has not previously changed his or her election;

33                       (C) Cancels his or her election before the end of the

34 second full calendar month immediately following his or her effective

35 retirement date;

36                       (D) Files with the system a new distribution election form

    *LJH003*                                                 01/16/2025 9:32:40 AM LJH003
                                                                            HB1158

1 approved by the system; and

2   (E) Repays the system any amount that he or she is no

3 longer entitled to have received as a result of changing his or her election.

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5   SECTION 2. EMERGENCY CLAUSE. It is found and determined by the

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

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

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

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

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

11 address administrative complexities caused by these provisions and to bring

12 these provisions into conformance with sound public pension policy and

13 actuarial requirements; that the revisions and updates are of great

14 importance to members of the Arkansas Teacher Retirement System and to other

15 citizens of the State of Arkansas; that as the Arkansas Teacher Retirement

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

17 July 1, 2025, is necessary in order to allow the provisions within this act

18 to begin on the first day of the fiscal year and to allow for a structured

19 and proper administration of the procedures referenced in this act; that the

20 updates and revisions to the Arkansas Teacher Retirement System Act are of

21 great importance and necessary for protecting member benefits and clarifying

22 the reporting and contribution requirements of employers participating in the

23 Arkansas Teacher Retirement System; and that this act is necessary in order

24 to maintain an orderly system of benefits for the members of the Arkansas

25 Teacher Retirement System. Therefore, an emergency is declared to exist, and

26 this act being necessary for the preservation of the public peace, health,

27 and safety, shall become effective on July 1, 2025.

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