AR HB1374

Reduces the amortization period threshold for reversing compounded cost of living adjustments from 30 years to 18 years, allowing the Arkansas Teacher Retirement System board to act when unfunded liabilities exceed this shorter timeframe.

Clarifies that board resolutions reversing compounded cost of living adjustments may include charts or proxy formulas to address benefit changes due to divorce, remarriage, or death of members or their spouses.

Allows the board to phase in reversals of compounded cost of living adjustments by board resolution, with any reversal applied at the beginning of the fiscal year.

Declares an emergency clause to make the act immediately effective upon gubernatorial approval, expiration of the veto period, or veto override, citing the need for timely changes to maintain the system's actuarial soundness.