AR SB164

Establishes a voluntary buyout plan allowing the Arkansas Teacher Retirement System Board of Trustees to offer one-time lump sum payments to inactive members, surviving spouses, and alternate payees in exchange for cancellation of all retirement benefit rights.

Eligible participants include inactive members with deferred retirement eligibility who have been inactive for at least one year after their last year of service, and surviving spouses or alternate payees entitled to future benefits who have not yet received retirement payments.

Board may offer buyout plans periodically with limited participation terms and must identify specific formulas for calculating lump sum payments based on contributory and noncontributory service or future retirement benefits.

Members who receive a buyout may later repurchase their previously credited service as contributory service if they become active members again, treating it as if it were private school service.

Amends deferred retirement eligibility provisions to exclude members who have participated in a buyout plan from receiving deferred annuities.