AR HB1183

Amends Arkansas Code § 24-7-506 to update outsourcing provisions for the Arkansas Teacher Retirement System covering public schools and educational agencies.

Covered employers outsourcing services must elect within 60 days to either become a participating employer (enrolling contractor employees in the retirement system) or a surcharge employer (paying a monthly surcharge of no more than 4% on embedded employee salaries).

Surcharge rates are phased in: 0.5% (2018), 1% (2019), 2% (2020), 3% (2021), and up to 4% (2022 and beyond) as established by the Board of Trustees.

Participating employers may phase-in their election over up to three fiscal years after the outsourcing agreement while paying surcharges during the transition period.

Designates the Division of Youth Services Education System as a participating employer and clarifies that using "employee" and "employer" terminology does not create liability or employment relationships between covered employers and contractor employees.

Declares an emergency effective date of July 1, 2023, to align with the fiscal year and allow proper administration of the system.