§ 24-4-601 — Straight life annuity generally

Arkansas § 24-4-601

• Jurisdiction: Arkansas
• Title: 24

Text

(a) (1) Beginning July 1, 2001, any member who retires as provided in § 24-4-508 or §§ 24-4-510 - 24-4-512 shall receive a straight life annuity for each year of contributory service credit equal to two and seven-hundredths percent (2.07%) of the member's final average compensation multiplied by the number of years and fraction of a year of credited service rendered on or after July 1, 2001, with the Arkansas Public Employees' Retirement System. (2) Beginning July 1, 2001, any member who retires as provided in § 24-4-508 or §§ 24-4-510 - 24-4-512 shall receive a straight life annuity for each year of contributory service credit equal to two and eleven-hundredths percent (2.11%) of the member's average compensation multiplied by the number of years and fraction of a year of credited service rendered before July 1, 2001, with the system. (b) (1) For each year of noncontributory credited service in the system rendered prior to July 1, 2007, resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, a member shall receive one and seventy-five-hundredths percent (1.75%) of the member's final average compensation plus, for each year of noncontributory credited service in the system rendered prior to July 1, 2007, resulting from employment in a position never so covered, a member shall receive two and eleven-hundredths percent (2.11%) of the member's final average compensation. (2) For each year of credited service in the system rendered after June 30, 2007, resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, a member shall receive one and seventy-two-hundredths percent (1.72%) of the member's final average compensation plus, for each year of credited service in the system rendered after June 30, 2007, resulting from employment in a position never so covered, a member shall receive two and seven-hundredths percent (2.07%) of the member's final average compensation. In no event shall service as a district judge in the state division receive less than three percent (3%) of the member's final average compensation. (3) For each year of actual service in the system in excess of twenty-eight (28) years that is rendered on or after July 1, 2009, a member shall receive a straight life annuity equal to an additional five-tenths of one percent (0.5%) of the member's final average compensation. (c) (1) A member of the General Assembly first elected before July 1, 1999, shall receive a monthly annuity equal to thirty-five dollars ($35.00) multiplied by the number of years of actual service as a member of the General Assembly. (2) A member of the General Assembly first elected before July 1, 1999, who served as Speaker of the House of Representatives or President Pro Tempore of the Senate shall receive a monthly annuity equal to forty dollars ($40.00) multiplied by the total number of years of actual service as a member of the General Assembly. (d) (1) In addition, if a member has credited service resulting from employment in a position covered at any time by Social Security or another federal retirement plan supported wholly or in part by employer contributions, and if that member is retiring as provided in subsection (b) of this section or § 24-4-510 , and if that member's age at retirement is younger than Social Security's minimum age for an immediate retirement benefit and sixty-two (62) years of age, then that member of the system shall receive a temporary annuity equal to thirty-three-hundredths of one percent (0.33%) of his or her final average compensation for each year of the noncontributory credited service. (2) The temporary annuity shall terminate at the end of the calendar month in which the earliest of the following events occurs: (A) The member's death; (B) The member's attainment of the Social Security minimum age; or (C) The member's attainment of sixty-two (62) years of age. (3) It is considered sound public policy that retirement pay not exceed working pay except for increases after retirement caused by inflation. Accordingly, at the time of retirement the total of the system's noncontributory annuities resulting from employment in a position also covered by Social Security shall not exceed the member's final average compensation. (4) If no temporary annuity is payable as provided in this subsection or after the temporary annuity has terminated and if the member has at retirement any credited service for any period of time prior to July 1, 1991, then the future payments of the annuity for life shall not be less than they would have been under the provisions that were in effect on July 1, 1990, for this subsection, plus a corresponding increase for any benefit enhancements that have been enacted since July 1, 1991.

Legislative History

Acts 1957, No. 177, § 11; 1959, No. 42, § 11; 1965, No. 153, §§ 11, 12; 1967, No. 108, § 3; 1969, No. 632, § 3; 1975, No. 907, § 9; 1979, No. 715, § 6; 1981, No. 859, § 6; A.S.A. 1947, § 12-2511; Acts 1991, No. 223, § 1; 1995, No. 629, § 1; 1997, No. 318, § 1; 1999, No. 496, § 2; 2001, No. 151, § 31; 2001, No. 355, § 1; 2003, No. 1473, § 55; 2005, No. 1450, § 1; 2007, No. 220, § 1; 2009, No. 1200 § 1; 2011, No. 38, § 8.