HB1154
To Enact The Arkansas Teacher Retirement System's General Omnibus; And To Declare An Emergency.
AI-Generated Summary
This bill, known as the Arkansas Teacher Retirement System's General Omnibus Act, proposes several amendments to existing law concerning the Arkansas Teacher Retirement System (TRS). It clarifies the process for members to receive credit for federal service by requiring payment of costs and actuarial equivalents. The bill also modifies the conditions under which an active member's status changes to contributory, specifically for those moving from non-teacher to administrator or teacher roles for 185 days or more. Furthermore, it repeals provisions related to temporary waivers for employers unable to report or pay contributions electronically. The legislation also adjusts the distribution of Option B annuities upon a retiree's death, detailing how benefits are shared among dependent children if no spouse is designated. It also modifies the timeframe for a residue beneficiary to elect an Option A annuity and repeals a clause that determined the effective date of survivor benefits based on the law at the time of the retiree's death. Additional changes involve the disposition of retiree residue and the eligibility requirements for participating in a PSHE plan for new employees of PSHE employers. The bill declares an emergency, stating that immediate revisions are necessary for the proper administration and actuarial soundness of the TRS, with an effective date of July 1, 2025.
Potential Impact Analysis
Who Might Benefit?
['Members of the Arkansas Teacher Retirement System (TRS) who may benefit from clearer rules regarding federal service credit, potential changes in contributory status, and updated annuity distribution policies. Employers within the TRS system could also see administrative changes due to the repeal of temporary waiver provisions for electronic reporting and payments. New employees of PSHE employers may find expanded eligibility to participate in PSHE plans under certain conditions. The TRS itself is a beneficiary as the bill aims to update its operational statutes for improved administration and actuarial soundness.']
Who Might Suffer?
["Employers who previously relied on temporary waivers for electronic reporting and payment of TRS contributions will be directly impacted by the repeal of those provisions, requiring them to comply with electronic methods. Retirees or their beneficiaries who had specific expectations regarding the disposition of residue or the timing of survivor benefits may be affected by the repealed sections of the law. Individuals seeking to become a residue beneficiary of an Option A annuity might face a more stringent election deadline. The bill's impact on certain non-vested members of the TRS seeking PSHE plan participation could be less straightforward depending on the specific PSHE employer's adopted plan."]