An act TO CLARIFY THE LAW CONCERNING AN ELECTION TO 10 CHANGE ANNUITY OPTIONS WITHIN ONE YEAR OF RETIREMENT 11 UNDER THE ARKANSAS TEACHER RETIREMENT SYSTEM, the official text

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 1161

4

5 By: Representative K. Moore

6 By: Senator J. Boyd

7

8                              For An Act To Be Entitled

9               AN ACT TO CLARIFY THE LAW CONCERNING AN ELECTION TO

10              CHANGE ANNUITY OPTIONS WITHIN ONE YEAR OF RETIREMENT

11              UNDER THE ARKANSAS TEACHER RETIREMENT SYSTEM; TO

12              DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.

13

14

15                                     Subtitle

16                       TO CLARIFY THE LAW CONCERNING AN

17                       ELECTION TO CHANGE ANNUITY OPTIONS

18                       WITHIN ONE YEAR OF RETIREMENT UNDER THE

19                       ARKANSAS TEACHER RETIREMENT SYSTEM; AND

20                       TO DECLARE AN EMERGENCY.

21

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

23

24  SECTION 1. Arkansas Code � 24-7-706(e), concerning an election to

25 change annuity options within one (1) year of retirement under the Arkansas

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

27  (e)(1) Notwithstanding anything in this section to the contrary, a

28 retiree who retired on or after July 1, 1994, may elect to cancel his or her

29 election made at retirement for receiving an annuity and elect another

30 option, provided that he or she does the following within one (1) year of

31 retirement:

32                       (A) Does so within one (1) year after July 1, 1995, or

33 within one (1) year of retirement;

34                       (B) Files with the system a new election form approved by

35 the system; and

36                       (C)(i)(B)(i) Repays to the system the difference between

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                                                                            HB1161

1 the amount of the annuity received when he or she retired and the new annuity

2 due as a result of the election change, plus interest from July 1, 1994, or

3 his or her retirement date, whichever is later, to the date of payment in

4 full.

5            (ii) The difference shall be calculated retroactively

6 to July 1, 1994, or his or her the retiree's retirement date, whichever is

7 later.

8            (2) The election to change shall be made only one (1) time.

9            (3) The election change shall be effective retroactively to the

10 effective date of his or her annuity the month following the retiree's

11 fulfillment of the requirements specified under subdivision (e)(1) of this

12 section.

13

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

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

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

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

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

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

20 address administrative complexities caused by these provisions and to bring

21 these provisions into conformance with sound public pension policy and

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

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

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

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

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

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

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

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

30 great importance and necessary for protecting member benefits and clarifying

31 the reporting and contribution requirements of employers participating in the

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

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

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

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

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

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