SB116

Senate Bill 116 amends the Arkansas Teacher Retirement System (ATRS) to allow eligible members to purchase up to five years of 'permissive service credit' for 'gap years.' A gap year is defined as a fiscal year where the member was inactive and not providing qualified service. To qualify for the purchase, members must have five years of actual service in the system, return to their position as a classroom teacher, and accrue at least half a year of service credit after returning. The member must pay the full actuarial equivalent of the benefits associated with the purchased credit to ensure the system remains funded. The bill explicitly states that this credit cannot be purchased after a member has already retired. The legislation includes an emergency clause to ensure the changes take effect at the start of the next fiscal year, July 1, 2023.