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2025 Regular Session Introduced by Mike Andrade and 6 co-sponsors

House Bill 1347 allows Arkansas Teacher Retirement System benefits to be paid directly to special needs trusts, enhancing financial security for individuals with disabilities.

Signed by the Governor

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Overview

House Bill 1347, introduced on January 30, 2025, aims to amend existing laws concerning the Arkansas Teacher Retirement System (ATRS) by allowing the payment of annuities or benefits directly to special needs trusts established for beneficiaries. This bill has been referred to several committees, including WAL, JHA, and FIN, and is currently in the legislative process.

Purpose and Intent

The primary intent of HB 1347 is to enhance the financial security of individuals with special needs by enabling their benefits from the ATRS to be directed to a special needs trust. This change is designed to protect the assets of beneficiaries while ensuring they remain eligible for government assistance programs.

Key Provisions

Special Needs Trust Payments: The bill allows members of the ATRS to designate a special needs trust as the recipient of their annuity or benefits. This is applicable to beneficiaries under specific sections of the Arkansas Code (24-7-706, 24-7-709, 24-7-710, 24-7-711, and 24-7-720).

Eligibility: Parents or legal guardians of eligible beneficiaries can also elect for benefits to be paid to a special needs trust.

Direct Payments: If a special needs trust is not established or cannot be identified at the time of payment, the ATRS will pay the annuity or benefit directly to the individual.

Regulatory Authority: The Board of Trustees of the ATRS is granted the authority to create rules for the administration of this section.

Effective Date: The provisions of this act will take effect on July 1, 2026.

Impact

This bill is expected to significantly benefit individuals with disabilities by providing a mechanism to manage their benefits without jeopardizing their eligibility for other forms of assistance. It also clarifies the responsibilities of the ATRS regarding the establishment and management of special needs trusts.

Legislative Actions

March 20, 2025: Notification that HB 1347 is now Act 363.

March 18, 2025: The bill was correctly enrolled and transmitted to the Governor's Office.

March 13, 2025: The bill passed the Senate with amendments and was returned to the House.

March 12, 2025: Amendment #1 was adopted, and the bill was reported correctly engrossed.

Conclusion

House Bill 1347 represents a significant step forward in supporting individuals with special needs in Arkansas by allowing their retirement benefits to be managed in a way that protects their financial interests. The bill's passage will provide clarity and security for beneficiaries and their families.

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