AR SB197

Amends Arkansas Code § 24-7-205(b)(1) to allow the Arkansas Teacher Retirement System to withhold amounts due from member benefits or collect amounts through other lawful methods when a member owes a balance to the system.

Adds a new option allowing members with outstanding balances to elect to have the system cancel service credit for the fiscal year in question rather than pay the balance due.

Requires the system to return any member contributions for the affected fiscal year without interest if service credit is canceled under this provision.

Declares an emergency clause finding that current law does not provide adequate mechanisms for members to settle past obligations and that this measure is necessary for members planning to retire at the end of the school year.

Establishes immediate effective date upon Governor approval, expiration of veto period, or veto override by the legislature.