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AR HB1200

Bill

Status

Passed

4/8/2013

Primary Sponsor

Gary Deffenbaugh

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Origin

House of Representatives

89th General Assembly (2013 Regular)

AI Summary

  • Grants the Arkansas Teacher Retirement System Board authority to reverse compounding cost of living adjustments for all retirants and Teacher Deferred Retirement Option Plan participants.

  • When compounding is reversed, future benefits switch to simple cost of living adjustments for the year of reversal and thereafter, with no reduction to member benefits to recover previously paid additional amounts.

  • Board may change compounding cost of living adjustments by resolution at board meetings, and any reversal becomes effective at the beginning of the fiscal year.

  • Restricts reversal authority to situations where the system's actuary certifies the amortization period exceeds 30 years and the board determines reversal is necessary to address unfunded liabilities.

  • Declares an emergency effective July 1, 2013, to align implementation with the system's fiscal year and maintain orderly administration of benefits.

Legislative Description

To Allow The Board Of Trustees Of The Arkansas Teacher Retirement System To Reset The Benefit Base Amount For Compounding Cost Of Living Adjustment Rates; And To Declare An Emergency.

Last Action

Notification that HB1200 is now Act 967

4/8/2013

Committee Referrals

Public Retirement & Social Security Programs1/30/2013

Full Bill Text

No bill text available