AR HB1187

Consolidates and clarifies lump-sum death benefit eligibility for active members, retired members, and T-DROP participants under the Arkansas Teacher Retirement System, with benefits up to $10,000.

Establishes that members with a minimum of ten (10) years of actual contributory service receive the maximum lump-sum death benefit as determined by the Board of Trustees.

Requires lump-sum death benefits to be divided equally among all designated beneficiaries, or paid to the member's estate if no beneficiaries survive.

Specifies that lump-sum payments may be made directly from the system or through a group life insurance policy and are intended to be exempt from income tax.

Becomes effective July 1, 2023, with an emergency clause citing the need for timely implementation aligned with the fiscal year and for proper system administration.