HB1161
To Clarify The Law Concerning An Election To Change Annuity Options Within One Year Of Retirement Under The Arkansas Teacher Retirement System; And To Declare An Emergency.
AI-Generated Summary
This bill proposes to amend Arkansas Code § 24-7-706(e) concerning annuity option changes for retirees of the Arkansas Teacher Retirement System. It clarifies the process for retirees who wish to change their elected annuity option within one year of retirement. The current law allows such changes under specific conditions. The proposed changes aim to refine these conditions. Key requirements include filing a new election form and repaying the difference in annuity amounts received, plus interest. This repayment is calculated retroactively from a specific date. The bill also states that an election change can only be made once. The effective date of the changed annuity would be the month following the retiree's fulfillment of all requirements. The bill includes an emergency clause, stating its necessity for maintaining an orderly system of benefits and clarifying reporting requirements.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are retirees of the Arkansas Teacher Retirement System who have retired on or after July 1, 1994, and who may wish to change their annuity options within one year of their retirement date. The clarification of the law and the process for making such changes, including the conditions for repayment of differences and interest, directly benefits these individuals by providing a more defined framework for their retirement income choices. The Arkansas Teacher Retirement System itself may also benefit from the clarified administrative procedures and the assurance of accurate financial reconciliation.
Who Might Suffer?
The groups or entities most directly and negatively impacted by this bill would be those retirees who have already retired and elected an annuity option, and who now wish to change that option but cannot meet the specific repayment and interest requirements outlined in the bill. While the bill clarifies the process, it also mandates the repayment of the difference between annuities received and the new annuity, plus interest, which could represent a significant financial obligation for some retirees. The Arkansas Teacher Retirement System would be responsible for processing these changes and collecting the required repayments, which involves administrative effort and potential financial adjustments.