SB113 Summary

• Increases the interest penalty on delinquent employer contributions to the Arkansas Teacher Retirement System from 6% to 8% per annum with daily accrual, applied when payments are not received by the 15th of the month due or postmarked by the 14th.

• Adds a new $500 penalty for employer reports filed more than one month late, in addition to the existing $150 penalty for late report submissions.

• Authorizes the system to deduct delinquent funds (contributions, penalties, and interest) directly from operating funds designated to employers through the Department of Education, limited to state foundation funding, categorical funding, federal funding allowed by law, and net assets of charter schools.

• Allows the Board of Trustees to waive penalties and interest if the delinquency was not due to employer nondisclosure, fraud, or misrepresentation, and requiring payment would be unduly penal, burdensome, or result in manifest injustice.

• Declares an emergency clause making the act effective July 1, 2013, citing the need to maintain sound public pension policy and orderly benefit administration.