AR SB68

Members of the Arkansas Teacher Retirement System cannot accumulate additional service credit during contract buyout or court-ordered payments unless they continue to work on-site for the employer.

Employer contributions must be paid to the retirement system on contract buyout payments if the member does not continue working on-site for the employer, calculated as if payments were made under § 24-7-708.

Members may establish salary earned under a purchase service contract for on-site work by paying employee and employer contributions plus interest.

The bill declares an emergency, citing the need to prevent undue costs to the retirement system and protect against vesting and service credit rights being obtained through inactive contract buyouts.

The act becomes effective upon gubernatorial approval, expiration of the veto period, or veto override by the legislature.