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House Passes Stimulus Bill
The House of Representatives today passed President Barack Obama's $787 billion plan to resuscitate the economy. The bill was passed 246-183 with no Republican help. It now goes to the Senate, where a vote is possible later this evening to meet a deadline of passing the plan before a recess begins next week.
The bill combines $281 billion in tax cuts for individuals and businesses with more than a half-trillion dollars in government spending. The money would go for infrastructure, health care and help for cash-starved state governments, among scores of programs.
Local school districts would receive $70 billion in additional funding for K-12 programs and special education and to prevent cutbacks and layoffs and repair crumbling schools. There's about $50 billion for energy programs, much of which goes to efficiency programs and renewable energy.
Early next week, we will provide you with details about funding that will be coming to Arkansas as a result of this legislation.
Clarifications Made to SB 165 and Current Laws
Clarification of current laws:
Under current law, at age 65, an Arkansas Teacher Retirement System (ATRS) vested member (at least five years of service credit) may retire, begin drawing his or her retirement annuity payment, and receive the T-DROP distribution (lump-sum or annuity) without terminating employment (even for one day) and NOT be subject to the ATRS earnings limitation.
Age 60 Status: Under current law, at age 60, an ATRS vested member may retire, begin drawing his or her retirement annuity payment, and receive the T-DROP distribution. However:
• The member must separate from service for at least 30 days beyond his or her effective date of retirement
• The member is subject to the ATRS earnings limitation if he or she returns to ATRS-covered employment
Proposed changes:
This bill eliminates the ATRS earnings limitation for all retirees. This means 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 the retiree does not get a retirement benefit payment for 180 days. It means the retiree is not considered retired if he or 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.
T-DROP members with eight or more years of T-DROP participation as of July 1, 2009, would be excluded from the 180-day wait-period. For T-DROP members with eight or more years of T-DROP participation as of July 1, 2009, the return to work waiting period would remain at 30 days.
The bill 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.
No changes to the following:
The period of time between a member’s retirement effective date and receiving his or her first benefit payment remains unchanged at 30 days.
There would be no changes for the ATRS vested member who retires after reaching age 65 years.
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