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 1160
4
5 By: Representative K. Moore
6 By: Senator J. Dotson
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING PERMISSIVE SERVICE
10 CREDIT FOR GAP YEAR SERVICE UNDER THE ARKANSAS
11 TEACHER RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY;
12 AND FOR OTHER PURPOSES.
13
14
15 Subtitle
16 TO AMEND THE LAW CONCERNING PERMISSIVE
17 SERVICE CREDIT FOR GAP YEAR SERVICE
18 UNDER THE ARKANSAS TEACHER RETIREMENT
19 SYSTEM; AND TO DECLARE AN EMERGENCY.
20
21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
22
23 SECTION 1. Arkansas Code � 24-7-202(23), concerning the definition of
24 "gap year" as applicable to the Arkansas Teacher Retirement System, is
25 amended to read as follows:
26 (23) "Gap year" "Gap period" means a period of time one-quarter
27 (1/4) of a fiscal year:
28 (A) In which a member:
29 (i) Was an inactive member; and
30 (ii) Either:
31 (a) Was unemployed; or
32 (b) Did not provide qualified service; and
33 (B) For which the system may grant the member permissive
34 service credit;
35
36 SECTION 2. Arkansas Code � 24-7-613 is amended to read as follows:
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1 24-7-613. Permissive service credit -- Gap year period service.
2 (a) A member of the Arkansas Teacher Retirement System may purchase
3 permissive service credit for one (1) or more gap years periods if the
4 member:
5 (1) The member:
6 (A) Has five (5) years of actual service in the system;
7 (B)(2) Has left his or her position as a classroom teacher
8 immediately before each nonconsecutive gap year gap period or the initial gap
9 year gap period of consecutive gap years gap periods;
10 (C)(3) Returns to his or her position as a classroom teacher
11 after one (1) or more gap years gap periods;
12 (D)(4) Accrues at least one-half (�) year of service credit
13 after returning to his or her position as a classroom teacher;
14 (E)(5) Was inactive during the gap year gap period or gap years
15 gap periods; and
16 (F)(6) Is ineligible to receive free service credit for each gap
17 year gap period under another provision of the law applicable to the system;
18 and
19 (2) Each gap year amounts to an entire fiscal year.
20 (b)(1) A member may purchase one (1) one-quarter (1/4) year of
21 permissive service credit for each one (1) gap year gap period.
22 (2) A member shall not purchase more than five (5) years of
23 permissive service credit.
24 (c) Permissive service credit for one (1) or more gap years periods
25 shall not be purchasable after a member retires from the system.
26 (d) Permissive service credit shall be credited in accordance with �
27 24-7-601.
28 (e)(1) The member shall pay the actuarial equivalent of the member's
29 benefits to the system for each one-quarter (1/4) year of permissive service
30 credit purchased.
31 (2) A year Each one-quarter (1/4) year of permissive service
32 credit that is being purchased by a member shall not become credited service
33 under the system until the actuarial equivalent of the member's benefits is
34 paid in full.
35 (f) At the member's request, a member's payment for permissive service
36 credit under this section shall be refunded if the:
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1 (1) Member ceases to be an active member before the permissive
2 service credit is established as credited service in the system; or
3 (2) Permissive service credit is not otherwise used to establish
4 the member's eligibility for retirement under the system.
5
6 SECTION 3. EMERGENCY CLAUSE. It is found and determined by the
7 General Assembly of the State of Arkansas that the operations of a state
8 public retirement system are complex; that the Arkansas Teacher Retirement
9 System must be able to meet the needs of its members as anticipated by the
10 General Assembly; that certain provisions of the Arkansas Teacher Retirement
11 System Act, � 24-7-201 et seq., need immediate revision and updating to
12 address administrative complexities caused by these provisions and to bring
13 these provisions into conformance with sound public pension policy and
14 actuarial requirements; that the revisions and updates are of great
15 importance to members and covered employers of the Arkansas Teacher
16 Retirement System and to other citizens of the State of Arkansas; that as the
17 Arkansas Teacher Retirement System operates on a fiscal year of July 1 to
18 June 30, a July 1, 2025, effective date is necessary in order to allow the
19 provisions within this act to begin on the first day of the fiscal year and
20 to allow for a structured and proper administration of the procedures
21 referenced in this act; that the updates and revisions to the Arkansas
22 Teacher Retirement System Act are of great importance and necessary for
23 protecting member benefits and clarifying the reporting and contribution
24 requirements of employers participating in the Arkansas Teacher Retirement
25 System; and that this act is necessary in order to maintain an orderly system
26 of benefits for the members of the Arkansas Teacher Retirement System.
27 Therefore, an emergency is declared to exist, and this act being necessary
28 for the preservation of the public peace, health, and safety, shall become
29 effective on July 1, 2025.
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3 01/16/2025 9:46:59 AM LJH002Every fact on this page links to its source, starting with the official bill record.