AR SB141

Modifies Arkansas Code § 24-7-736(c)(3)(D) to change the final average salary calculation for the Arkansas Teacher Retirement System by replacing the 120% cap with a percentage increase cap tied to the base year, unless the salary differential is $5,000 or less.

Adds new subsection (f) to § 24-7-736 authorizing the board to adjust final average salaries by board resolution, with the percentage increase capped between 105% and 120% per year and salary differential set between $1,250 and $5,000 per year.

Declares an emergency clause citing the complexity of the Arkansas Teacher Retirement System and the need for immediate revisions to maintain actuarial status and conform to sound public pension policy.

Provides the act becomes effective on the Governor's approval, the expiration of the veto period, or the date the last house overrides a veto.

Bill approved by the Governor on March 23, 2017.