HB1140 Summary

• Removes antispiking provisions that penalize Arkansas Teacher Retirement System members who have an 8-year or more break in covered employment between any of their three highest salary years.

• Allows salary calculations for members with employment gaps to use all applicable highest salary years without the 120% salary cap limitation that normally applies.

• Establishes new statutory sections (24-7-735 and 24-7-736) defining final average salary calculations, including rules for comparing base years and handling purchased service contracts and litigation-related employment contracts.

• Permits members to count purchased contracts and contracts won through litigation toward their final average salary upon payment of all required contributions plus interest.

• Declares an emergency effective date of July 1, 2011, based on findings that current law unfairly penalizes members with employment gaps and conflicts with sound public pension policy.