AR HB1186

Allows retirees under the Arkansas Teacher Retirement System to designate both a surviving spouse and one or more dependent children as beneficiaries under Option A (100% Survivor Annuity) and Option B (50% Survivor Annuity), instead of only one beneficiary type.

Establishes payment distribution formulas when both spouse and dependent children are designated: spouse and one child receive equal shares; spouse and multiple children means spouse gets 50% and remaining 50% is split equally among children.

Protects each beneficiary's portion so that payments do not revert to other beneficiaries if a spouse or dependent child predeceases or becomes ineligible to receive benefits.

Allows a surviving spouse of a retiree without designated dependent children to elect a lump-sum distribution of the retiree's residue instead of receiving a spousal annuity.

Clarifies that when a surviving spouse of a disability retiree elects Option A benefits, the procedures under § 24-7-710 determine when benefit payments begin; effective date is July 1, 2023.