AR HB1212

Requires use of actuarial equivalent method for all service credit purchases in the Arkansas Teacher Retirement System, effective July 1, 2011, replacing previous contribution-based calculations.

Members with existing service purchase accounts established before July 1, 2011 must agree to a reasonable payment schedule by June 30, 2012, or their payments will be returned without interest.

Prohibits creation of new service purchase accounts for service credit purchases beginning July 1, 2011, requiring lump-sum actuarial equivalent payments instead.

Applies actuarial equivalent valuation to all types of purchased service credit including federal service, military service, out-of-state service, overseas service, private school service, and domestic federal service.

Declares an emergency effective July 1, 2011, citing need to align system with sound pension policy and eliminate administrative burdens from unpaid service purchase accounts.