AR HB1320

Changes the delinquent payment penalty from a fixed 8% per annum rate to an interest penalty equal to the actuarially assumed rate of return on investments of the Arkansas Teacher Retirement System Fund, applied on an annual basis.

Replaces specific monthly deadlines (15th day) with flexible dates and frequencies established by the Board of Trustees of the Arkansas Teacher Retirement System for both contribution payments and report submissions.

Modifies language to permit (rather than require) the system to transfer delinquent funds and penalties from moneys due employers from the Treasurer of State and Department of Education.

Requires beginning July 1, 2022, that employers report member and employer contributions electronically through the Arkansas Teacher Retirement System portal and pay contributions by electronic transfer.

Allows employers to request a temporary waiver from electronic reporting and payment requirements if unable to comply, provided the request is submitted by July 1, 2022, and includes a compliance timeline.