HB1275 Summary

• Adds definition of "alternate retirement plan" to Arkansas Teacher Retirement System law as a retirement plan based on purchase of contracts providing retirement and death benefits under specified statutory sections.

• Establishes conditions for using reciprocal service credit from alternate retirement plans: member's contributions must not have been withdrawn in full or in part, with exceptions for withdrawals after age 59½ and eligible rollover transactions.

• Allows members to repay previous withdrawals to alternate retirement plans made before age 59½ to restore reciprocal service eligibility if permitted by the plan.

• Prohibits salaries earned from alternate retirement plan participation from being used in calculating final average salary for retirement benefits.

• Declares an emergency effective upon Governor's approval, bill expiration without veto, or veto override, citing conflicts in law concerning reciprocal service in alternate retirement plans that put member benefits at risk.