AR HB1206

Changes cost of living adjustment (COLA) for Arkansas Teacher Retirement System retirees from mandatory to discretionary by allowing the Board of Trustees to "may" instead of "shall" grant annual adjustments effective July 1 each year.

Modifies COLA calculation to be the lesser of 3% or the percentage change in the Consumer Price Index for the South Region over the one-year period ending in December preceding the adjustment date, ensuring adjustments do not fall below the base amount.

Expands COLA eligibility to include newly employed members, nonvested members, vested members, and retirants/beneficiaries of the Arkansas Teacher Retirement System, giving the Board discretion over which groups receive adjustments.

Maintains the Board's authority to modify monthly benefit stipends between $1.00 and $75.00 per month, with restrictions preventing reductions unless the amortization period exceeds 18 years and the Board determines reduction is prudent for actuarial soundness.

Declares an emergency effective July 1, 2019, stating that revisions to the Arkansas Teacher Retirement System are necessary before the fiscal year begins to maintain an orderly system of benefits.