The general administration and proper operation of the System is vested
in the Board of Trustees that consists of eleven (11) elected members and four
(4) ex-officio members. Pursuant to ACA § 24-7-301, the Board shall adopt
rules and regulations regarding the election of trustees and vacancies.
I.
GENERAL RULES FOR CANIDACY AND
VOTING IN TRUSTEE ELECTIONS
A. For
purposes of eligibility for an active member trustee position and voting,
"active members" shall mean active members as defined in A.C.A. §
24-7-202(2) and members participating in T-DROP, if employed by a participating
employer and receiving T-DROP plan deposits.
B. If a candidate is employed in more than
one position with a participating employer(s), eligibility shall be determined
based on his/her primary position for which he/she receives the greater
percentage of covered salary.
C.
For purposes of eligibility for an administrator trustee position or voting for
that position, "administrator" shall mean a public school superintendent,
assistant superintendent, principal, or vice-principal; a higher education
president, chancellor or director; or a community college, vocational/
technical or cooperative director, president, or vice president, who is
employed by a participating employer OR any employee of an education related
agency participating in ATRS that is employed in a position grade C127 or
higher, including unclassified employees.
D. For purposes of eligibility for a licensed
trustee position or voting for that position, "licensure" shall mean a person
employed in a position requiring state teaching licensure or an education
institution grade C117-C126 and not an administrator.
E. For purposes of eligibility for a
nonlicensed trustee position and voting for that position, "nonlicensed" shall
mean a member employed in a position with a participating employer that does
not require state licensure including employment in an educationally related
agency in a position grade C116 or below. Nonlicensed shall not include any
position defined as an administrator or licensure.
F. Only members are authorized to vote in a
trustee election. Guardians, attorneys-in-fact, or others may not vote on
behalf of a member.
G. Terms not
defined in these rules shall have the meaning set forth in A.C.A. §
24-7-202 et. seq.
II.
QUALIFICATION AND VOTER
ELIGIBILITY FOR ELECTED TRUSTEE POSITIONS
There shall be four (4) active member trustees each of whom will
represent one of the four congressional districts in Arkansas.
A.
Active Member Trustee Position Nos.
1-4 - Congressional Districts
1.
Qualifications for Candidacy
i. Active member
with a minimum of five (5) years of actual service.
ii. Employed by a participating employer
located in the congressional district for which he/she is seeking
election.
iii. Employed in a
position requiring state teaching licensure or the equivalent under these
rules.
2. Eligible
Voters for Trustee Position Nos. 1-4
Active members, regardless of credited service, employed by
participating employers located in the respective congressional districts and
who are otherwise eligible to be a candidate under subsection IIA iii
above.
B.
Active Administrator Trustee Position Nos. 5 - 6
There shall be two (2) active member trustees each of whom must be
employed as administrators as defined in these rules.
1. Qualifications for candidacy:
i. Active member with a minimum of five (5)
years of actual service.
ii. As
provided in A.C.A. § 24-7-301, at least one of the administrators serving
as an active administrator trustee must be employed by a participating employer
as an Arkansas school superintendent.
iii. If an election is being held for either
position and the other administrator position is not held by a superintendent,
candidates for the open position must be a superintendent and the notice of
election shall so state that requirement.
iv. Candidates for Position No. 5 and
Position No. 6 shall be licensed administrators employed by a participating
employer.
2. Eligible
Voters for Trustee Position Nos. 5-6
Eligible voters for Position Nos. 5 and 6 shall be active members,
regardless of credited service, employed as licensed administrators.
C.
Nonlicensed
Trustee Position No. 7
1.
Qualifications for candidacy:
i. Active
member with a minimum of five (5) years of actual service.
ii. Employed in a position not requiring
state licensure.
2.
Eligible Voters for Trustee Position No. 7
Eligible voters for Position No. 7 shall be all active members,
regardless of credited service, who are employed by participating employers in
nonlicensed positions as defined these rules.
D.
Minority Trustee Position No.
8
There shall be one (1) member trustee of a minority racial ethnic
group.
1. Qualifications for
candidacy:
i. An active or retirant member of
ATRS with a minimum of five (5) years of actual service.
ii. Member of a minority racial or ethnic
group
2. Eligible Voters
for Trustee Position No. 8
i. All active
members, regardless of credited service
ii. Retirant members
E.
Retired Member Trustees
(At-Large) - Position Nos. 9-11
There shall be three (3) retired member trustees who shall be
"retirants" under A.C.A. § 24-7-202.
1. Qualifications for Candidacy
i. Retirant member of ATRS
ii. Resident of the State of
Arkansas
2. Eligible
Voters for Trustee Position Nos. 9-11
All retirants of ATRS, regardless of present employment status or
residency.
Amended: April 26, 2007
February 11, 2008
December 18, 2009
ELECTION PROCEDURES AND TERMS OF OFFICE FOR ELECTED TRUSTEE
POSITIONS
A.C.A. §§ 24-7-301, 302
I.
RULES ON ELECTED TRUSTEE
NOMINATIONS
A. During December in a
year in which an elected trustee position is subject to election or to fill a
vacancy in a special election, the System shall publish a public notice of an
upcoming trustee position election in a statewide newspaper for at least five
(5) consecutive days. The notice will also be sent to such persons or groups
that have requested a notice of Trustee vacancies. The notice shall also be
posted on the System's website from December until the closing of the
nomination period.
B For all
elected positions, a candidate must submit a petition signed by at least
twenty-five (25) ATRS members who are eligible to vote for the trustee position
for which the member is seeking nomination. The petition must include the last
four digits of each signatory's Social Security number for verification of the
member's eligibility to vote for the position.
C. The original petitions for nomination must
be submitted to the ATRS Executive Director no later than January 10. Actual
delivery must be made by January 10, regardless of postmark date or other
methods to attempt delivery.
D.
Upon receipt of a petition, the System will confirm its receipt and verify the
eligibility of the candidate for the trustee position under ACA §
24-7-301. The System will verify the member's signatures signing the petition
as eligible voters.
E. The
candidates submitting a petition for nomination will receive notice by the
System if the petition is accepted and will receive a list of other members who
were certified to participate in the election for the trustee position for
which he/she seeks nomination.
F.
Prior to ballots being mailed, the System or its designee will conduct a random
drawing for ballot position with at least two (2) independent witnesses present
certifying the drawing. Candidates will be notified of the order in which
he/she will be listed on the ballot.
G. Upon request of a candidate, the System
will provide a list of mailing addresses of eligible voters for the
distribution of a candidate's campaign materials. The candidate's message shall
not contain information that would constitute defamation. Campaign materials
will be mailed by the election contractor from its place of business. All
postage for such materials shall be the candidate's sole expense.
II.
RULES ON
TRUSTEE ELECTIONS
A. The System shall
employ an independent election service to conduct the trustee elections.
B If any position receives only
one nomination and the position is not contested, the Board at its next regular
or special meeting may certify the nomination and declare the candidate duly
elected as a trustee prior to the commencement of the trustee's term.
C. The System shall publish ballots that
shall be submitted to the election vendor for mailing on March 15 to the
member's address of record.
D.
Completed ballots must be received by the election vendor on or before April 15
to be counted. The vendor shall only count such ballots that are correctly
completed.
E. Results for positions
not subject to a run-off election shall be certified to the System by April
20.
F. If upon certification of the
outcome of a trustee election by the vendor, if no candidate receives at least
50% of the votes cast by eligible voters, a runoff election will be held
between the two (2) candidates receiving the highest number of votes for the
position. The run-off ballots will be mailed by the election vendor to eligible
voters on May 1.
G. Completed
ballots for a run-off election must be received by the election vendor on or
before June 1 to be counted.
H.
Upon the completion of the run-off election, results shall be certified by the
election vendor to the System by June 5.
I. Any candidate included on the ballot may
submit a challenge to the election vendor's certified results for an elected
trustee position by submitting a written challenge to the ATRS Executive
Director. A challenge must be received within five (5) calendar days of the
certification of the elections results for the position at issue. If a
candidate challenges the election results, the election process will be
suspended for the same number of days that the resolution of the challenge
requires, and the remaining election schedule will be adjusted
accordingly.
J. Upon receipt of a
challenge, the ATRS Board will hold a special meeting to consider the
challenge. The Executive Director will issue a System recommendation to the
Board along with the administrative record relating to the position being
challenged.
K. For any fixed date
in the election schedule that falls on a holiday or a weekend, the official
date shall become the next business day.
L. Upon completion of an election, all
elected trustee terms, except for special elections, begin on July 1 following
the election.
III.
BOARD PROCEDURES TO FILL UNEXPIRED TERMS FOR ELECTED TRUSTEES
Staff shall notify the Board of all resignations and vacancies by other
causes in any Trustee position as soon as possible after staff has knowledge of
the vacancy. The Board shall take appropriate action authorized by law to fill
the vacancy. In the event the Board determines that the vacancy should be
filled by a special election, then a special election shall be scheduled as
follows:
If an elected trustee position is declared vacant by the Board and is
to be filled by a special election then, in accordance with this regulation,
the System shall publish notice that a special election will be held and will
announce the schedule for the special election, which will include the
following:
1) the date the vacancy
occurred and position being vacated;
2) the time period for circulating petitions
for nominating signatures;
3) the
deadline for filing petitions with the System;
4) the date the System will verify the
validity of petitions;
5) the date
ballots will be sent to eligible voters;
6) the election date; and
7) the date the term shall begin.
IV.
TERM OF ELECTED TRUSTEE
OFFICE AND VACANCIES
A. The term of
office of each elected trustee shall be six (6) years.
B. Each trustee shall continue to serve as
trustee until his or her term expires unless he/she resigns or is otherwise
ineligible under these rules.
C. In
a year in which a six (6) year term of a trustee expires, the position shall be
filled under the regular election schedule in ATRS Rules.
D. A trustee elected to fill an unexpired
term in a special election will serve for the remainder of the six (6) year
term of the vacating trustee.
V.
RULES ON ELECTED TRUSTEE
VACANCIES
A. An active member trustee
shall be ineligible to serve after becoming inactive or retiring.
B. An active member trustee shall be
ineligible to serve if he or she changes employment category during his or her
term of office and the employment category is a requirement of the trustee
position, i.e., an administrator becomes a classroom teacher.
C. A retirant member trustee shall be
ineligible to serve after becoming active.
D. An absence that is excused by a majority
of the members of the Board shall not be counted towards a vacancy. Attendance
on either day of a two-day Board meeting is sufficient to meet the attendance
requirement.
E. The Board of
Trustees or its designee will notify the Board member after the second
consecutive absence.
F. A vacancy
will occur if the Board votes to declare a position vacant due to one of the
following:
1. A trustee is absent for three
(3) consecutive regular Board meetings and the absences are not excused by the
Board;
2. A trustee is ineligible
due to a change in status under A.C.A. § 24-7-302 resulting in three (3)
consecutive absences at regular Board meetings prior to the expiration of the
trustee's term; or
3. Resignation
or death of a trustee which will create three (3) or more consecutive absences
at regular Board meetings prior to the expiration of the trustee's term.
If the Board declares a vacancy by resolution under the section above,
the Board may vote to hold a special election to fill an unexpired term under
the Board procedures to fill unexpired terms for elected trustees. If the Board
does not certify a vacancy under this section, the vacancy will be filled
during the next annual ATRS election held upon expiration of an elected
trustee's term, utilizing approved election procedures for that
position.
Approved: May 10, 2000
Amended: February 11, 2008
December 18, 2009
SCHEDULE FOR TRUSTEE ELECTIONS
A.C.A. § 24-7-302
Amended: April 26, 2007
February 11, 2008
Repealed: December 18, 2009 (Combined with Policy No.
4-2)
EMPLOYEE (MEMBER) CONTRIBUTIONS
A.C.A. §§ 24-7-406, 411
RULES (amended by Acts 465 and 468 of 2009)
1. After June 30, 1997, each employer will
remit the member contributions by employer "pick up" from the salary earned by
contributory members, and those contributions will then be treated as employer
contributions in determining tax treatment under the provision of the federal
Internal Revenue Code and the Arkansas Income Tax Act. The employer may pay
these contributions by a reduction in the cash salary of the member, or by a
setoff against future salary increases, or by a combination of a reduction in
salary and a setoff against future salary increases.
2. Member contributions shall be 6% of member
salaries for the fiscal year for all contributory members except for members
who participate in the System under the $7,800 salary election.
3. Overpayments or underpayments of member
contributions shall be handled pursuant to the following:
A. If an underpayment of member contributions
of less than $25.00 occurs, the System shall not collect the difference of this
underpayment and no adjustment to member service credit will be made.
B. If an overpayment of member contributions
of less than $25 occurs, a refund will not be issued unless requested by the
member.
C. Should an underpayment
of contributions occur as a result of a member's changing status from
noncontributory to contributory, the member must remit to the System the
contributions due based on gross salary earned retroactive to the beginning of
that fiscal year. Service credit will not be credited until the total amounts
due are paid in full.
D. Should an
overpayment of member contributions occur as a result of changing status from
contributory to noncontributory, the System will refund the overpayment of
member contributions to the employer.
4. If the System is owed member contributions
and interest by a member, the interest owed by the member may be waived by the
Board or its designee under ATRS Rule No. 9-8 (Error Corrections and Collection
of Overpayments).
Amended: August 11, 1998
July 18, 2005
February 11, 2008
December 18, 2009
REPORTING EMPLOYEE AND EMPLOYER CONTRIBUTIONS
A.C.A. §§ 24-7-401, 411, 708, 1303 and A.C.A. § 24-2-701
RULES FOR THE EMPLOYER CONTRIBUTION RATE
A.C.A. § 24-7-401 as amended by Act 468 of 2009 and A.C.A. §
24-2-701)
1. The employer
contribution rate shall be the rate established by the Board of Trustees of the
Arkansas Teacher Retirement System prospectively for each year pursuant to
A.C.A. § 24-2-701 and A.C.A. § 24-7-401.
2. The Arkansas Teacher Retirement System
shall annually notify participating employers of the employer contribution rate
established by the Board for the upcoming fiscal year.
3. Pursuant to A.C.A. § 24-7-103,
participating employers shall pay the Teacher Retirement employer contributions
for eligible employees in accordance with these rules and regulations.
RULES FOR EMPLOYEE AND EMPLOYER REMITTANCES AND
REPORTS
A.C.A. §§ 24-7-401, 411)
1. Remittances of employee and employer
contributions are due monthly.
2.
Employer reports required by the System are due on a monthly and quarterly
basis.
3. The employer reports
required by the System must be on forms or electronic media either furnished by
the Teacher Retirement System or approved by the System, and shall be
accompanied by supporting documentation as determined by the System.
4. An employer report or remittance by an
employer shall not be delinquent if received by the System on the
15th day of the month in which it is due or
postmarked by the 14th day of the month. If the
14th falls on Saturday, Sunday, or a holiday, the
postmarked date is extended to the next business day.
5. A $150.00 late report penalty will be
assessed on any required employer report not received by its due
date.
6. If an employer fails to
remit employee or employer contributions by the date due under No. 4 above, an
interest penalty of 6% shall be assessed with daily interest accrual until
paid.
7. The Board or its designee
may, but is not required, to waive penalties and interest due from an employer
if in its discretion it finds:
A. The
delinquency was not the result of the employer's nondisclosure, fraud, or other
misrepresentation; and
B. Based on
the facts and circumstances, the required payment of the penalties and/or
interest would be unduly penal, burdensome, or manifestly unjust.
8. The Board designates
the Executive Director to waive penalties and interest from an employer in an
amount not to exceed $1,000 per fiscal year. The Executive Director shall
report to the Board any amounts excused under this section. Any request to
waive employer penalties and interest exceeding $1,000 per fiscal year shall be
submitted to the ATRS Board for consideration.
RULES FOR REPORTING EMPLOYER CONTRIBUTIONS FOR ACTIVE
MEMBERS ( A.C.A. §§ 24-7-401, 411)
1. The active employer contributions to be
paid each fiscal year by participating employers shall be the current employer
contribution rate multiplied by the active employees' total salaries.
2. The Department of Education shall pay from
the Public School Fund, in accordance with rules established by the Board, the
ATRS employer contributions due for eligible employees of Cooperative Education
Services Areas, Vocational Centers, Arkansas Easter Seals, and the school
operated by the Department of Correction. ATRS shall certify to the Department
of Education at the close of each quarterly report the amount of employer
contributions due. The amount will be based on the employers' reported
salaries.
3. The System may certify
to the state's Chief Fiscal Officer the names of participating employers who
are delinquent in reporting and remitting contributions under this policy. Upon
notification, the Chief Fiscal Officer may direct a transfer of funds on
deposit in the State Treasurer's Office for any delinquent employer payments
plus the six percent (6%) interest penalty to the System. (A.C.A. §
19-5-106)
4. Supplemental salary
payment reports for previous years will be accompanied by the employer
contributions due.
5. The Arkansas
Teacher Retirement System shall return to participating employers overpaid
contribution amounts due to erroneous submission of payments or incorrect
reporting of Salary Option 2 (first $7,800.00) member salaries. If an
overpayment of a contribution amount is less than $25.00, the refund will not
be issued to the employer unless requested in writing by the
employer.
6. The Arkansas Teacher
Retirement System shall not collect from participating employers an
underpayment of employer contribution amount if less than $25.00.
7. For members retiring and who are employed
by agencies or other institutions that use the state's 26-week payroll
schedule, employers should adhere to and report the salary, contributions, and
actual days worked through the state's fiscal year payroll schedule and for the
termination date of employment. Contributions should not be withheld on any
salary earned after the close of the current year's payroll, nor should any
salary or days of service be reported for that period of time.
RULES FOR REPORTING EMPLOYER CONTRIBUTIONS FOR T-DROP
MEMBERS (A.C.A. § 24-7-401, 1303 as amended by Act 743 of 2009 and
A.C.A. § 24-2-701)
1.
The T-DROP employer contributions shall be the employer contribution rate
multiplied by the total T-DROP participant's salaries.
2. Effective July 1, 2009, the employer
contribution rate for T-DROP participants shall be the percentage rate
established by the Board pursuant to A.C.A. § 24-7-401 for the fiscal
year.
RULES FOR REPORTING EMPLOYER CONTRIBUTIONS FOR
RETIREES
A.C.A. § 24-7-708 as amended by Act 743 of 2009)
1. The retiree contribution rate shall be the
employer contribution rate multiplied by the total retirees' salaries employed
by participating employers for that fiscal year.
2. Effective July 1, 2009, the employer
contribution rate shall be the percentage rate established by the Board
pursuant to A.C.A.§ 24-7-401 for the fiscal year.
Amended: June 17, 2003
April 6, 2004
Reaffirmed: June 15, 2004
Amended: July 18, 2005
April 26, 2007
February 11, 2008
December 18, 2009
ERROR CORRECTIONS AND COLLECTION OF
OVERPAYMENTS
A.C.A. § 24-7-205
REGULATIONS
1. If a change or error in the System's
records results in either an overpayment or underpayment to a member or
beneficiary of the System, the Board authorizes the System to correct the error
in the records and to adjust the benefit or other amount payable to the
corrected amount.
2. If a member,
former member, contributor, former contributor, retiree, beneficiary, or
alternate payee under a qualified domestic relations order pursuant to A.C.A.
§§ 9-18-101-103, is paid any benefit or payment by the System to
which the person is not entitled, a receivable is created and the Board or its
designee(s), may collect the amount due to the System as set forth in A.C.A.
§ 24-7-205.
3. Before making
an adjustment of benefits or pursuing any other collection action under Nos. 1
and 2 above, a notice shall be provided to the person who is the subject of the
adjustment. The notice will state the amount determined to be a receivable and
the reasons underlying the determination. The notice shall also suggest
alternate methods for payment of the receivable.
4. Appeals to dispute collections may be made
in writing to the Executive Director if made within 30 days of the date of the
original notice to the member, former member, contributor, former contributor,
retiree, beneficiary, or alternate payee.
The Executive Director's de novo review may be appealed to the Board of
Trustees for a de novo review by the Board. The affected party must send notice
in writing to the Executive Director that the Executive Director's decision is
being appealed within 30 days of the date of the Executive Director's review.
The Board will hear the appeal in a regularly scheduled Board meeting. During
the appeal process, retirement benefits will continue to be paid.
RULES (As amended by Acts 465 and 468 of 2009)
1. The Board or its designee may
waive adjustment or repayment of an overpayment to a member, former member,
contributor, former contributor, retiree, beneficiary, or alternate payee if:
A. The overpayment was not the result of the
member's or the beneficiary's nondisclosure, fraud, misrepresentation, or other
fault; and
B. The Board or its
designee finds in his or her sole discretion that recovery of the overpayment
or adjustment could be a manifest injustice.
2. If the System discovers a member owes any
other amount relating to his/her service in the System, a notice shall be sent
to the member requesting payment of such amount including applicable interest
or penalty charges. However, the Board or its designee may, but is not
required, to waive payment of any interest charges under this section if it
finds that:
A. The amount owed was the result
of an error by the System;
B. The
error is not the result of the member's nondisclosure, fraud,
misrepresentation, or other fault; and
C. Recovery of the amount would result in a
manifest injustice to the member.
3. The Board authorizes the Executive
Director to waive interest on required contributions under Nos. 1 and 2 above
in an amount not to exceed $5,000. Any request to excuse an interest amount
exceeding $5,000 shall be submitted to the ATRS Board for review. The Executive
Director shall report to the Board any amounts excused under this
section.
4. If required, a
receivable under this section that is found by the Board or its designee to be
uncollectible or for which adjustment or payment has been waived will be
submitted to the Chief Fiscal Officer of the state for abatement pursuant to
A.C.A. §§ 19-2-301 - 307.
Adopted: July 18, 2005
Amended: December 18, 2009
RETIREMENT/BENEFITS DEFINITIONS
This section defines words, phrases, and terms used in all retirement
rules and regulations under ATRS Rules & Regulations, Chapters 7, 9, and
10. All words, phrases, and terms not defined in this section in these chapters
have the meaning set forth in A.C.A. § 24-7-202 et.
seq.
1.
Annuity Options means the member's election at retirement of an
annuity that shall be paid throughout the retiree's lifetime in accordance with
A.C.A. § 24-7-706.
2.
Medical committee means the committee of three (3) physicians
appointed by the Board under A.C.A. § 24-7-303 for the purpose of
evaluating disability retirement applications.
3.
Option beneficiary means a
person(s) nominated by the member, in writing at retirement, who, if eligible,
will receive annuity payments under the annuity option selected by the member
after the member's death.
4.
Person for purposes of Rule No. 9-7 (Annuity Options and
Disposition of Residue after Retirement) means an individual, corporation,
partnership or other legal entity.
5.
Participating employer means
an employer who participates in the Arkansas Teacher Retirement System whose
employees are eligible for membership under A.C.A. § 24-7-501, A.C.A.
§ 24-7-202, or other applicable law.
6.
Residue beneficiary means a
person(s) nominated by the member to receive the residue, if any, under A.C.A.
§ 24-7-709.
7.
Receivable means monies due to ATRS from a member, former member,
participating employer, contributor, retirant, beneficiary, or alternate payee
under a qualified domestic relations order as a result of an overpayment of any
payment or benefit by the System.
8.
Retiree means a retired
member who is receiving an annuity from the System.
9. To
terminate covered
employment means that:
A. A member
shall cease all employment relationships with any ATRS participating employers
by his/her retirement effective date.
B. A member shall cease to render compensable
services to or on behalf of any ATRS participating employers during the
termination period.
C. The member
should no longer have the authority to act as a representative of the employer
or exercise any authority over its employees by his/her retirement effective
date.
D. A member must follow
normal procedures for resigning from his/her employer unless involuntary
terminated.
E. No participating
employer has the right to future services rendered by the member.
F. Participating employer(s) will have paid
any accumulated benefits customarily paid at the time of termination.
G. A member shall remain terminated with all
participating employers for the minimum number of days required in A.C.A.
§ 24-7-502; and
H. A member
shall not form any employment agreements, express or implied, with a
participating employer prior to or during the termination period.
10.
T-DROP plan
deposits means the deposits made to each T-DROP participant's account
under A.C.A. § 24-7-1306.
Adopted: December 18, 2009
DISABILITY RETIREMENT
A.C.A. § 24-7-704
__________________________________________
RULES (as amended by Acts 468 and 743 of
2009)
I.
ELIGIBILITY
AND REVIEW OF DISABILITY RETIREMENT APPLICATIONS
A. Active members in employer service with
five (5) years of actual and reciprocal service are eligible to apply for
disability retirement. For purposes of eligibility for disability retirement, a
member will be considered active for an additional fiscal year following the
last fiscal year that actual service was rendered to a covered employer.
However, service credit used in any benefits paid shall only include days of
service paid by a covered employer including paid sick leave.
B. To qualify for disability retirement, a
member who as the result of a personal injury or disease must become totally
and permanently incapacitated for the performance of his or her job duties.
Members who meet this standard under A.C.A. § 24-7-704 may be retired by
the Board.
C. Disability benefits
shall be confirmed upon affirmative vote of the Board after a majority
recommendation by the System's Medical Committee that the member is:
1. Physically or mentally
incapacitated;
2. Unable to perform
his or her current work duties;
3.
Most likely permanently incapacitated.
D. Disability retirement benefits shall
commence the first day of the calendar month following the date the member is
found to be disabled by the Medical Committee. Termination of active membership
for disability benefits shall be the last date of employment with the member's
covered employer. Paid sick leave, Family Medical Leave Act (FMLA) leave, if
granted for the disability applicant, and other medical leave granted by the
employer shall extend the date of active membership; however, service credit
shall only include the days of service credit if it was for paid sick leave
from the covered employer.
E. For a
reciprocal member, see Rule No. 6-2 (Reciprocity, No. 2, Disability).
F. If a disability is determined to exist by
the Medical Committee, disability retirement benefits shall be paid in arrears
beginning with the effective date of benefits. Disability retirement shall be
effective the first day of the calendar month following the member's date of
termination of active membership, which is the date the member last rendered
service to a covered employer.
G.
If the application for disability retirement benefits is denied and the member
elects to apply for voluntary retirement, the effective date for retirement
will be determined under the voluntary retirement provisions.
H. If an active member dies after applying
for disability retirement, the following will apply:
1. If the member dies before receipt of the
first disability retirement check but after receiving final approval for
disability retirement, the benefits will be paid under the disability
retirement option selected by the member.
2. If the member dies after the disability
application is received by the System but before disability retirement is
approved, then the System shall consider the member to have died in "active"
service and survivor benefits under A.C.A. § 24-7-710 shall be
paid.
I. The annuity
formula for computing disability retirement benefits is the same as for
voluntary age and service retirement.
J. The Board or its designee may require a
disability retirant who has not attained age 60 to undergo a medical
examination to be made by or under the direction of the Medical Committee at
least annually during the first five (5) years following a member's disability
retirement and at least once in each three (3) year period thereafter.
1. If a disability retirant refuses to submit
to the medical examination, the disability annuity may be suspended by the
Board until the withdrawal of his/her refusal.
2. If a disability retirant's refusal to
submit to the medical examination continues for one (1) year, the Board may
revoke the disability benefit.
3.
If after a retirant's medical examination, the Medical Committee reports to the
Board that the retiree is physically and mentally able and capable of resuming
duties in the position held at the time of disability retirement, then the
disability retirement shall terminate. Disability retirants who are disapproved
for further disability annuities shall be removed from the System's retirant
payroll the earlier of six months following the review date or the first of the
month following the return to covered employment.
K. If a member is approved for disability
retirement but continues to work, he/she must terminate employment by the
proposed disability retirement effective date. If covered employment is not
terminated after receiving notice of the proposed effective date, disability
retirement will be cancelled, the member will be considered active, and is
eligible to reapply for disability retirement.
L. If a member applies for disability
retirement and is disapproved, he/she has the right to file a new disability
application submitting additional information for review.
II.
DISABILITY RETIRANTS RETURN TO
COVERED EMPLOYMENT
A. Disability
Retirant Employed Prior to Attaining Age 60
1.
When a disability retirant becomes employed by an employer covered by the
System prior to attaining sixty (60) years of age, his or her disability
retirement shall terminate.
2. It
is the responsibility of the employee and employer to report a disability
retirant's return to covered employment to the System immediately upon
employment.
3. When a disability
retirant under sixty (60) years of age returns to covered employment, he or she
shall immediately become an active member of the System, his or her credited
service at the time of disability retirement will be restored to the members'
deposit account, and the member will be treated and reported as an active
member for purposes of earning service credit.
4. The disability retirant shall not be given
service credit during the time he or she received a disability retirement
benefit and will not be required to repay disability benefits received prior to
returning to covered employment.
B. Disability Retirant Employed After
Attaining Age 60
When a disability retirant returns to a position covered by the System
upon attaining sixty (60) years of age, the retirant shall be treated as if he
or she had retired under A.C.A. § 24-7-701.
See ATRS Rule No. 10-2 (Employment of an ATRS Retiree by a
Participating Employer) for rules applicable to age and service
retirants.
Amended: June 15, 2004
July 18, 2005
June 19, 2007
December 18, 2009
RESCINDING RETIREMENT
A.C.A. § 24-7-717 and A.C.A. § 24-7-702, amended by Acts 435
and 478 of 1993, Act 481 of 2001, and Act 97 of 2007
Amended: 2001
June 17, 2003
June 15, 2004
April 26, 2007
Repealed: December 18, 2009
SURVIVOR BENEFITS
A.C.A. §§ 24-7-710, 713
RULES AND REGULATIONS (as amended by Act 1324 of
2009)
If an active member with five (5) or more years of actual and
reciprocal service, including credited service for the year immediately
preceding his or her death, dies while in active service before retirement,
survivor benefits as provided in A.C.A. § 24-7-710, plus the monthly
stipend under A.C.A. § 24-7-713, shall be paid to the following qualifying
dependents.
1. SPOUSE
A. The member's surviving spouse, who was
married to the member for at least two (2) years immediately prior to the
member's death, shall receive a surviving spouse benefit.
B. If at the member's death there are no
dependent children eligible to receive a dependent child annuity, a surviving
spouse who qualifies to receive a surviving spouse annuity may file with the
System a waiver of any rights to the spouse annuity.
If the surviving spouse files a waiver of the spouse annuity, the
deceased member's residue beneficiary(ies) will receive a single distribution
of the member's residue amount, if any.
C. The spouse annuity shall begin under the
following schedule:
i. If the member was not
eligible for early, regular, or deferred retirement at the time of his/her
death, the spouse annuity will begin the date the member would have been
eligible to receive retirement benefits and is payable for the spouse's
lifetime, regardless of remarriage.
ii. However, if the member had either
satisfied the age and service requirements provided in A.C.A. §§
24-7-701 or 702 or attained age sixty (60) and was eligible for deferred
retirement under A.C.A § 24-7-707, then the spouse annuity commences the
month following the member's death and is payable for the spouse's lifetime,
regardless of remarriage.
iii. If
the surviving spouse is eligible to receive the survivor annuity upon the
member's death but would receive a reduction due to the member being less than
60 years of age, the spouse may defer receipt of the annuity until the member
would have been entitled to an unreduced benefit at age 60 under A.C.A. §
24-7-707.
D. Amount of
Surviving Spouse Annuity
The surviving spouse annuity shall be calculated as if the member
retired on the date of his/her death and elected Option A, nominating his/her
spouse as the Option A beneficiary. The System shall use the retirement formula
in effect at the time the spouse's annuity commences, including the cost of
living adjustment (COLA) and monthly retirement stipend.
Surviving spouses will receive a COLA the July 1 following the annuity
commencement date if he/she has received at least 12 monthly benefit payments
prior to the COLA implementation date. The cost of living adjustment shall be
simple unless the Board elects to compound the COLA for that period.
2.
DEPENDENT
CHILDREN
A. An active member's
dependent children shall each receive a surviving child annuity upon the
member's death. The surviving child annuity shall be equal to 20% of the
member's highest salary year in covered employment plus the monthly stipend
under A.C.A. § 24-7-713. If the member's highest salary year occurs in the
year the member died, the System shall calculate the dependent child
annuity(ies) on the basis of the full year of salary. Each child's annuity
shall begin the month following the member's death and be payable until the
annuity terminates.
Surviving children will receive a COLA the July 1 following the annuity
commencement date if he/she has received at least 12 monthly benefit payments
prior to the COLA implementation date. The cost of living adjustment shall be
simple unless the Board elects to compound the COLA for that period.
B. However, if a member has more
than three (3) dependent children eligible under this section, then the
aggregate annuity payable shall not exceed 60% of the member's highest salary
year plus the monthly stipend under A.C.A. § 24-7-713, and shall be
divided equally among the surviving dependent children.
C. A member's "child" eligible to receive a
child annuity is a "child" under any of the following:
i. A natural child of the member;
ii. A child that has been made a child of the
member by adoption or other court action prior to the member's death; or
iii. A child under the permanent
care of the member at the time of the death of the member, which permanent care
status shall be determined under Rule 2D of this policy.
D. To be a "dependent child" under these
rules, the child must:
i. Meet requirements
and qualify for survivor benefits under Social Security;
ii. Have been claimed as a dependent by the
deceased member on his or her federal income tax for the immediately preceding
calendar year; and
iii. Have lived
in the same household for at least two (2) years immediately preceding death of
the member, unless the child is under two years of age.
E. A child identified as a dependent will
remain eligible to receive a survivor annuity until he/she is no longer a
dependent. A child is no longer dependent if he/she reaches the age of
18.
F. A child will continue to be
eligible for a child survivor annuity after reaching age 18 if the child
continues consecutively, without interruption as a fulltime student at an
accredited secondary school, postsecondary school such as a vocational
technical school, college, or university. In any event, a dependent child
annuity will terminate when the child reaches age 23.
i. A full-time student is defined as one
carrying 12 semester hours or 8 trimester hours in college, four (4) hours per
day in a secondary or postsecondary school, or other verifiable indices from an
accredited institution that the dependent child is engaged in full time
curriculum or field of study.
ii.
If a child who is receiving a dependent child annuity is age 18 or older but
becomes temporarily physically or mentally incapacitated, the Board may
continue paying benefits upon receipt of a doctor's certification that the
child is temporarily physically or mentally incapacitated, and is unable to
attend school for the period of one semester or term. At the beginning of the
next semester or term, if the child does not reenter school full-time, the
dependent child annuity will terminate.
iii. Certification of attendance in an
accredited school may be reported by the dependent child in the absence of a
parent or legal guardian after the dependent child reaches age 18.
G. A deceased member's dependent
child who is dependent due to having been adjudged physically or mentally
incapacitated by a court or legal tribunal continues to be eligible to receive
a dependent child annuity as long as the incapacity exists, regardless of
age.
H. A child annuity shall not
be adjusted from its initial monthly amount when other dependent annuities
terminate except for COLAs.
I. A
dependent child annuity will be paid as separate payments to each child
monthly, rather than one lump-sum check payable to the spouse or custodian.
Deposit accounts designated to receive survivor annuity payments to a child
under age 18 must qualify as custodial accounts in accordance with the Uniform
Transfers to Minors Act.
3.
GENERAL RULES REGARDING SURVIVOR
ANNUITIES
A. Survivors are required to
produce sufficient proof of eligibility under these provisions prior to
receiving benefit payments.
B. If
at the time of an active member's death, a surviving spouse is listed on the
death certificate, the System will search for the surviving spouse for up to
one year. If after one year, ATRS has not located or been contacted by the
surviving spouse, ATRS will refund the member's residue amount, if any, to the
member's remaining residue beneficiaries surviving the member.
C. If the member dies before receipt of the
first disability retirement check but after receiving final approval for
disability retirement, the benefits will be paid under the disability
retirement option selected by the member.
D. If the member dies after the disability
application is received by the System but before disability retirement is
approved, then the System shall consider the member to have died in "active"
service and survivor benefits under A.C.A. § 24-7-710 shall be
paid.
E. For the purposes of
determining survivor benefits, the member's salary shall be the salary that the
member would have received in the fiscal year in which he/she died had the
member lived through the end of the fiscal year.
F. Salary payments made after the death of a
member that were earned prior to death are subject to System deductions and
shall be reported in total salary and days of service in the employer's
quarterly report. Payments made by an employer after the death of an active
member that are made as a mere gratuity and were not earned by the member shall
not be included in the member's salary reported to the System and are not
subject to contributions.
For purposes of survivor benefits, a member will be considered active
for an additional fiscal year following the last fiscal year that actual
service was rendered to a covered employer.
G. If survivor benefits are payable by more
than one reciprocal system to eligible survivors of a deceased member, the
survivors shall not receive more as a percentage of the deceased member's final
pay or as a minimum dollar amount than the largest amount payable by a single,
reciprocal system. The System will prorate minimum benefits payable with any
other reciprocal systems that have a minimum benefit provision in its plan.
Each reciprocal system shall pay only its proportionate share of the minimum
amount based on the ratio of service in its system to the total service in all
reciprocal systems.
H. When the
member elects to transfer from ATRS to APERS under the provisions of Act 793 of
1977, APERS' law governs the survivors' eligibility for a payment of residue or
survivor benefits upon the member's death
Amended: June 15, 2004
February 7, 2006
April 26, 2007
December 18, 2009