HB 1262 Summary

• Allows retirees of the Arkansas Public Employees' Retirement System (APERS) and Arkansas Teacher Retirement System (ATRS) to return to employment within 6 months of retirement without forfeiting retirement benefits, with benefits cancellation and reinstatement to active member status if reemployed full-time.

• Retirees reemployed within 6 months on a full-time basis do not earn additional service credit if they return within 6 months; those reemployed after 6 months have benefits suspended until employment ends.

• If a retiree retires again within 2 years of reemployment, they receive no recalculated benefit and resume the original allowance; if they retire after 2 or more years, they receive credit for additional service and a recalculated benefit.

• Retirees reemployed on a less than full-time basis may earn without penalty up to the federal Social Security Act exempt earnings limit; excess earnings result in 25% benefit suspension on a calendar-year basis.

• Establishes procedures for transferring annuity reserves between accounts when members return to employment within 6 months of retirement, and requires employers to contribute amortized rates for retirees not earning additional service credit.