AR SB535

School districts must increase their local contribution rate to employee health insurance by the same percentage that the district increases base salaries for licensed personnel under the district's licensed salary schedule.

The minimum contribution rate must increase annually by the same percentage that the legislature increases the salary and benefit component of per-student foundation funding under Arkansas Code § 6-20-2305.

Changes to the local contribution rate take effect for the plan year following adoption of the salary schedule change by the school district.

School districts are exempt from the local contribution increase requirement if they: (A) must raise base salaries due to the state minimum teacher compensation schedule; (B) have 75% or more of eligible personnel participating in the public school employees' health insurance program; or (C) already contribute 125% or more of the minimum contribution rate.

Approved April 2, 2015.