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HB 1161

TO CLARIFY THE LAW CONCERNING AN ELECTION TO CHANGE ANNUITY OPTIONS WITHIN ONE YEAR OF RETIREMENT UNDER THE ARKANSAS TEACHER RETIREMENT SYSTEM; AND TO DECLARE AN EMERGENCY.

2025 Regular Session Introduced by Justin Boyd and 1 co-sponsor

Act 228 allows Arkansas Teacher Retirement System retirees to change their annuity options within one year of retirement, enhancing flexibility and clarity in benefits.

Notification that HB1161 is now Act 228
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WeVote Research Nonpartisan
Bill Summary · HB 1161

Summary of House Bill 1161 (Act 228)

Purpose and Intent

House Bill 1161, now known as Act 228, aims to clarify the regulations surrounding the election to change annuity options for retirees within the Arkansas Teacher Retirement System (ATRS). The bill addresses administrative complexities and seeks to ensure that the system meets the needs of its members effectively.

Key Provisions

The bill amends Arkansas Code § 24-7-706(e) to provide the following key changes:

  1. Election to Change Annuity Options:

    • Retirees who retired on or after July 1, 1994, can elect to cancel their initial annuity option and choose a different one within one year of their retirement.
    • To effectuate this change, retirees must:
      • Submit a new election form approved by the ATRS.
      • Repay the difference between the annuity amount received at retirement and the new annuity amount, including interest calculated from either July 1, 1994, or their retirement date, whichever is later.
    • This election can only be made once.

  2. Effective Date:

    • The changes will take effect on July 1, 2025, aligning with the fiscal year of the ATRS to facilitate proper administration.

  3. Emergency Clause:

    • The bill includes an emergency clause, indicating the immediate need for these changes to ensure the ATRS operates effectively and meets the requirements of its members.

Impact

  • Affected Parties: The primary beneficiaries of this bill are retirees of the Arkansas Teacher Retirement System who may wish to alter their annuity options. The bill aims to provide them with greater flexibility and clarity regarding their retirement benefits.
  • Administrative Improvements: The revisions are intended to streamline operations within the ATRS, ensuring compliance with sound public pension policies and actuarial standards.

Legislative Timeline

  • Introduced: January 16, 2025
  • Passed: The bill was read and passed multiple times in both the House and Senate, with the emergency clause adopted on February 19 and February 24, 2025.
  • Notification of Act: The bill was officially notified as Act 228 on February 27, 2025.

Conclusion

House Bill 1161 (Act 228) represents a significant update to the Arkansas Teacher Retirement System, providing retirees with the opportunity to adjust their annuity options within a specified timeframe. The bill's emergency clause underscores its importance in maintaining the integrity and functionality of the retirement system for Arkansas educators.

Compiled from official sources — confirm details with the bill’s official record.

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