AR HB1125

Amends Arkansas Code § 24-5-101(9) to redefine "lump-sum service" under the Arkansas State Highway Employees' Retirement System for employees terminating employment with the Arkansas State Highway and Transportation Department.

Specifies that lump-sum payments of leave, salary, or other compensation shall not be earnings for retirement purposes, but both the time and amount paid shall be considered for computing average earnings and time of service.

Requires both the member's and employer's contribution rates to apply to lump-sum payments.

Declares an emergency clause finding that revisions to the retirement system law are urgently needed to conform with sound public pension policy.

Establishes an effective date of July 1, 2013.