AR SB160

Modifies the definition of "salary" for retirement purposes under the Arkansas Teacher Retirement System to mean remuneration on which the employer is required to withhold federal income tax under the Internal Revenue Code.

Includes National Board for Professional Teaching Standards incentive bonuses, employer pick-up contributions, and cafeteria plan contributions as pensionable salary.

Excludes payments from contract buyouts, settlements, claims, judgments, arbitration awards, decrees, or court-ordered payments from the salary definition unless the amount paid exceeds regular service wages.

Establishes that members cannot accumulate service credit during contract buyout or settlement payments unless they continue working on-site for the employer, and requires employers to provide settlement agreements or court orders to the system for benefit calculations.

Allows members to purchase service credit under settlement agreements or court orders for wrongful termination claims, paid using actuarial equivalent benefits, with service credit earned during the dispute period subtracted from the purchasable amount.

Repeals Arkansas Code § 24-7-737 regarding salary contracts and additional remuneration.

Declares an emergency effective on Governor approval, expiration of veto period, or veto override.