AR SB163

Amends Arkansas Code § 24-7-1306(b) to modify the percentage reduction calculation for plan deposits in the Teacher Deferred Retirement Option Plan by treating all service credit types (contributory, noncontributory, and reciprocal) equally at a 1% reduction per year instead of using different reduction rates.

Eliminates the separate 0.6% reduction rate previously applied to noncontributory service credit, replacing it with the standard 1% reduction rate applied to all credited service years.

Maintains the existing rule that participants with an effective plan date before September 1, 2003 receive 100% plan deposits with no reduction upon reaching normal retirement age.

Continues the reduced deposit calculation for participants with an effective plan date on or after September 1, 2003 when they reach normal retirement age.

Declares an emergency effective date of July 1, 2013 to align with the Arkansas Teacher Retirement System's fiscal year and ensure proper system administration.