AR HB1336

Amends Arkansas Code § 24-4-510(a)(2) to modify early retirement annuity calculations for the Arkansas Public Employees' Retirement System members.

Maintains the standard early retirement formula of 100% reduced by 0.5% multiplied by the number of months the member is younger than normal retirement age.

Authorizes the Board of Trustees to set early annuity reductions between 5% and 15% per year (prorated monthly) if the system's actuary certifies unfunded liabilities exceed 18 years and the board determines reduction is prudent for actuarial soundness.

Creates a special provision for members with 25-27 years of actual service who have not reached age 65, using a 1% reduction rate (instead of 0.5%) multiplied by months until completing 28 years of service or reaching age 65.

Requires that when multiple reduction formulas apply, the lesser reduction shall be imposed on the retiring member.