AR HB1040

Prohibits retired state employees participating in state retirement systems from returning to employment in covered positions, effective July 1, 2011, with limited exceptions.

Exempts members participating in deferred retirement option plans (DROP) on July 1, 2011, and members who retired between January 2011 and June 2011 from the general prohibition.

Allows retired members to return to work only if they forfeit retirement benefits while employed and forfeit credited service accrual during the reemployment period.

Permits elected public officials to retire and immediately assume office in a different form of government (city, county, or state) while receiving retirement benefits and service credit.

Repeals the rescission of retirement provision in the Arkansas Teacher Retirement System, eliminating the ability of retirees to rescind retirement and become active members again.