HB1157
To Amend The Law Concerning Survivor Annuity Benefits For Dependent Children Under The Arkansas Teacher Retirement System; And To Declare An Emergency.
AI-Generated Summary
This bill proposes amendments to the Arkansas Teacher Retirement System concerning survivor annuity benefits for dependent children. The primary change is to extend the age at which a child is considered a dependent for annuity purposes from eighteen (18) to twenty-two (22) years of age, provided they remain continuously enrolled as a full-time student. It also allows for deferred enrollment in educational institutions to not impact eligibility. The bill clarifies eligibility for children of retirees who return to work or disability retirees. Furthermore, it establishes provisions for the temporary suspension and reinstatement of dependent child annuities for individuals called to active military duty or training. The bill declares an emergency to allow for an immediate effective date of July 1, 2025, to align with the retirement system's fiscal year and ensure proper administration. These changes aim to update and clarify existing law regarding survivor benefits for dependent children.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the dependent children of deceased active, retired, or disability members of the Arkansas Teacher Retirement System. Specifically, children who are pursuing higher education or vocational training between the ages of 18 and 22 would benefit from the extended eligibility period. Additionally, children who are called to active military duty or training would benefit from the provision allowing for temporary suspension and subsequent reinstatement of their survivor annuity benefits. The Arkansas Teacher Retirement System itself would also benefit from updated and clarified administrative procedures.
Who Might Suffer?
This bill is not expected to directly negatively impact any specific group or entity. The changes primarily expand eligibility and clarify existing provisions for survivor benefits. Any financial implications would likely be absorbed by the Arkansas Teacher Retirement System's overall funding structure, which is designed to cover such benefit obligations. Employers participating in the system may experience minor administrative adjustments related to updated reporting and contribution requirements as mentioned in the emergency clause, but these are framed as necessary for maintaining an orderly system.