HB1160

House Bill 1160 amends the Arkansas Teacher Retirement System (ATRS) statutes concerning 'gap year' service credit. It renames the term 'gap year' to 'gap period' and redefines it as a period of one-quarter of a fiscal year during which a member was inactive and either unemployed or not providing qualified service. The bill clarifies the eligibility requirements for members to purchase permissive service credit for these gaps, ensuring they must return to their classroom position and accrue at least one-half year of service credit afterward. Members may purchase one-quarter year of credit for each gap period, up to a maximum of five years total. The bill requires members to pay the full actuarial equivalent for such credit. An emergency clause is included to make these changes effective July 1, 2025, to align with the start of the fiscal year and improve administrative operations.