HB1187

House Bill 1187 updates and clarifies the administrative code regarding lump-sum death benefits for members of the Arkansas Teacher Retirement System (ATRS). The bill refines the eligibility criteria for active members, T-DROP participants, and retired members to receive these benefits. It establishes procedures for the designation of beneficiaries and dictates that death benefits must be divided equally among multiple designees. The legislation grants the ATRS Board of Trustees authority to periodically adjust benefit amounts based on actuarial sustainability. It also mandates that benefit enhancements may not be implemented if they would cause the system’s unfunded liabilities to exceed an eighteen-year amortization period. Finally, the bill includes an emergency clause to ensure these administrative updates take effect on July 1, 2023, to align with the start of the fiscal year.