SB 126 Summary

• Allows Arkansas Teacher Retirement System (ATRS) members currently employed at higher education institutions to continue ATRS membership and accrue service credit if they remain part-time or full-time employees and their employer continues reporting and contributing.

• Enables higher education employers to enroll vested ATRS members as new employees on or after July 1, 2011, through an irrevocable participation agreement, making those employers subject to ATRS employer and employee contribution requirements.

• Prohibits benefits-eligible employees from simultaneously participating in an alternate retirement plan while accruing service credit in ATRS, and limits salary credit to the highest salary when concurrently employed by multiple retirement system employers.

• Establishes "PSHE employers" (post-secondary or higher education employers) must adopt policies identifying benefits-eligible positions and comply with system verification and reporting requirements.

• Takes effect July 1, 2011, with an emergency clause citing urgent need for legislative clarification regarding higher education employee retirement coverage and system administration.