ATRS-Clarifications Made to SB 165
We understand that SB 165, which revises the return to work provisions in the teacher retirement laws, can be confusing. We have spoken with the Deputy Director of the Arkansas Teacher Retirement System to clarify the bill. We have included the explanation of the bill which was published in the Monday, Feb. 9 Alert, along with new information, which further explains it.

SB 165 eliminates the ATRS earnings limitation for all retirees. This means that if an ATRS retiree who is under age 65 returns to work for a covered employer after termination requirements are met, there is no reduction on the ATRS retirement annuity due to an ATRS earnings limitation.

Termination requirements would be changed to a 180-day wait period before returning to work for an ATRS-covered employer. This does not mean that the retiree does not get a retirement benefit for 180 days. It means that the retiree is not considered retired if he/she returns to work in a position covered by ATRS within 180 days from the effective date of retirement. If that should happen, the retirement benefits would stop, and the member would be required to pay back benefits he or she had received.

Currently, a retiree who is age 65 (the ATRS normal retirement age) or older may return to work in a position covered by ATRS without being subject to the ATRS earnings limitation. Also, an active or T-DROP member who turns 65 and is eligible for retirement may retire without separating from employment in a position covered by ATRS, and draw both a salary and retirement benefit. Those current provisions regarding normal retirement age will not change.

However, a current ATRS member who either is 60 years of age and has five or more years of actual or reciprocal service, or who has 28 or more years of credited service regardless of age, may voluntarily retire upon written application to the ATRS and begin receiving his or her retirement annuity.

If this retiree wants to resume employment in a similar (teaching) or different (bus driver) position covered by ATRS, the retiree must meet the 180-day employment termination requirement before resuming employment. During this time, the person will receive his/her retirement annuity. Once the retiree lays out 180 days, he/she may take another job covered by ATRS. The person will be able to draw a salary from that position and also continue to receive his or her annuity.

The legislation also requires employer contributions to be paid on all ATRS retirees who return to work for covered employers, regardless of age, at the current employer contribution rate in effect at the time of employment.

This bill would also require the employer matching rate for all T-DROP participants to be the current employer rate in effect for all other members. AEA is evaluating the bill and awaiting the revenue impact statement.

Subpoena Power Bill Advances
HB 1372 by Representative Roebuck and Senator J. Jeffress received a unanimous vote from the House Judiciary Committee. This bill grants the Professional Licensure and Standards Board and the Arkansas State Board of Education the power to issue subpoenas for testifying at hearings concerning alleged violations of the Code of Ethics. The bill now goes to the House for action.

Together we can, and together we will build a great public school for every child.