AR HB1199

Establishes employer contribution rate cap of 14% until July 1, 2015, and 15% thereafter for the Arkansas Teacher Retirement System.

Allows the board to increase employer contribution rates above 14% (in 0.25% increments up to 15%) only if the system's actuary reports an amortization period exceeding 30 years for unfunded liabilities.

Requires cost savings from member benefit program changes or increased member contributions equal to or exceeding the value of any employer contribution increase, implemented before or simultaneously with the increase.

Mandates that if the amortization period is 30 years or less with a 14% contribution rate, the rate shall not exceed 14%.

Sets employer contribution rate at the higher of 14% or the rate needed to amortize unfunded liabilities over 30 years if a lower rate would achieve the 30-year amortization period.