AR SB174

Post-secondary institution employers may adopt a "less restrictive plan" by resolution that allows new employees to participate in the Arkansas Teacher Retirement System without being vested members at the time of initial employment.

Employees hired between July 1, 2011 and June 30, 2013 who were previously prohibited from system membership may elect to join between July 1, 2013 and June 30, 2014 if continuously employed by a post-secondary institution employer.

Employees electing retroactive membership may purchase service credit based on applicable member and employer contribution rates on annual salary plus 8% annual interest, payable in full within one year of election.

Post-secondary institution employers become subject to employer contribution requirements under Arkansas Code § 24-7-401 et seq. once a benefits-eligible employee elects to participate in the system.

The act becomes effective July 1, 2013 and is declared an emergency to provide retirement options for educational professionals employed by post-secondary institutions.