§ 24-7-502 — Termination of active membership - Definitions

(a) (1) A member of the Arkansas Teacher Retirement System shall terminate covered employment and remain terminated during the member's applicable termination separation period to become and remain eligible for retirement. (2) Effective July 1, 2023, a member shall not be terminated from employment for purposes of retirement eligibility if within the fourth full calendar month of the member's effective date of retirement the member: (A) Becomes employed with a covered employer; and (B) Has not attained the system's normal retirement age. (3) A member who fails to meet both the termination requirement and the termination separation period requirement of this subsection shall: (A) Repay retirement benefits paid during the period the member did not meet the requirements; and (B) Forfeit all future retirement benefits until the member files a new completed retirement application using the standard system process. (4) The system may require the repayment of retirement benefits, interest, and distributions from the member directly or indirectly by using the system's standard withholding rule. (5) If a member fails to meet the termination requirement or to complete the termination separation period, then the member is not eligible to receive retirement benefits until the member files a new completed retirement application using the standard system process. The member shall be subject to a new termination separation period. (6) During the termination separation period, the member shall remain terminated and shall not: (A) Form an employment relationship with a covered employer; (B) Render any compensable services to or on behalf of a covered employer, except that a member may perform volunteer activities for a covered employer that do not have the effect of holding a position open for the member during a termination separation period; (C) Exercise any authority to act as a representative of a covered employer or exercise any authority over employees of a covered employer; or (D) Be indirectly employed by or through an independent contractor, limited liability company, partnership, corporation, or legal entity that is employed by a covered employer if the member has substantial control of the employer-employee relationship, including without limitation the ability to negotiate rates of pay with the covered employer or assign work and work hours to the member. (b) (1) When a member is no longer employed by an employer in a position covered by the system, the person shall cease to be an active member of the system. (2) If an inactive member has not retired and later becomes reemployed by an employer in a position covered by the system, the member shall become an active member and be eligible to accrue additional service credit. (3) If the member's service credit during reemployment is less than one-fourth (¼) of a fiscal year under § 24-7-601 , he or she shall be considered to be an inactive member at the termination of the reemployed service, and the only monthly benefits payable shall be those provided by § 24-7-707 . (c) Upon a member's retirement, the person shall cease to be an active member and, except as otherwise provided in this act, he or she shall not accrue additional service credit or make contributions to the system. (d) As used in this section: (1) (A) "Terminate" means: (i) The member's covered employment has ended at all covered employers; (ii) A complete severance of the employer-employee relationship has occurred at all covered employers that the member was employed with before the member retired from the Arkansas Teacher Retirement System; (iii) The member has ceased performing any employment services for any covered employer, except for uncompensated functions related to the transfer of the duties or the transfer of the position of the member; (iv) The member has not formed any express or implied employment agreement or taken action that would obligate the member to render compensable services to a covered employer or entitle a covered employer to the services of the member after the termination separation period; (v) The member has followed normal retirement procedures for resigning from the covered employer unless involuntarily terminated before the member's effective date of retirement; and (vi) All covered employers have paid or have initiated the process to pay all accumulated benefits such as annual leave and sick leave to the member by the effective date of retirement. (B) "Terminate" does not mean: (i) Taking a leave of absence; or (ii) Performing any job duties or services without remuneration, except for the functions related to the transfer of duties or the transfer of the position itself. (C) Providing volunteer activities at a covered employer that does not have the effect of holding a position open for the member during a termination separation period does not mean that the member is not terminated; and (2) "Termination separation period" means the time from a member's effective date of retirement until the date that the member is no longer prohibited by state law from returning to work at a covered employer.

Legislative History

Amended by Act 2023, No. 436,§ 3, eff. 8/1/2023. Amended by Act 2023, No. 183,§ 1, eff. 7/1/2023. Amended by Act 2023, No. 107,§ 27, eff. 7/1/2023. Amended by Act 2021, No. 290,§ 2, eff. 9/1/2021. Amended by Act 2021, No. 279,§ 9, eff. 7/1/2021. Amended by Act 2021, No. 190,§ 4, eff. 7/1/2021. Acts 1973, No. 427, § 6; 1975, No. 549, § 3; 1977, No. 541, § 2; 1981, No. 365, § 3; 1983, No. 619, § 6; 1983, No. 665, § 6; A.S.A. 1947, § 80-1440.3; Acts 1989, No. 652, § 5; 1993, No. 435, § 6; 1995, No. 542, § 4; 2001, No. 1146, § 1; 2007, No. 97, § 7; 2009, No. 743, § 1; 2011, No. 45, § 3.; 2011, No. 69, § 12; 2011, No. 565, §§ 1, 2; 2011, No. 974, § 2.