§ 24-7-713 — Retirement annuity - Simple cost of living adjustment and monthly benefit stipend - Definition

Arkansas § 24-7-713

• Jurisdiction: Arkansas
• Title: 24

Text

(a) (1) July 1 of each year, retirees, survivors, participants in the Teacher Deferred Retirement Option Plan, and annuity beneficiaries who have been receiving monthly benefits for the previous twelve (12) months shall receive a simple cost of living adjustment. (2) The cost of living adjustment under this section is calculated by multiplying one hundred percent (100%) of the member's base retirement annuity times three percent (3%). (3) The redetermined amount shall not be less than the base amount. (4) As used in this section, "base amount" means the amount of the benefit payable at retirement plus any one-time increases granted by legislative change after the member's effective date of retirement benefits, excluding the simple cost of living adjustment under this section and the benefit stipend under subsection (d) of this section. (5) The redetermined amount under this subsection is not considered a benefit enhancement under the limitations under § 24-1-106 . (b) (1) A member with at least ten (10) years of actual service in the Arkansas Teacher Retirement System is eligible to receive a benefit stipend in addition to his or her monthly retirement benefit. (2) The Board of Trustees of the Arkansas Teacher Retirement System may modify the amount of the benefit stipend from a maximum of seventy-five dollars ($75.00) per month to not less than one dollar ($1.00) per month for eligible benefit participants as a benefit supplement in addition to the cost of living adjustment under subsection (a) of this section. (3) A benefit stipend increase or decrease adopted by the board shall apply to a complete fiscal year and shall remain in effect until adjusted by the board subject to the limitations under subdivision (b)(5) of this section. (4) The board may adjust the benefit stipend amount by resolution at a meeting of the board. (5) The board shall not reduce the benefit stipend unless the: (A) Arkansas Teacher Retirement System's actuary certifies to the board that the amortization period exceeds eighteen (18) years; and (B) Board determines that a reduction in the benefit stipend is prudent to maintain actuarial soundness. (6) The board may phase in an increase or decrease of the benefit stipend. (7) If a member was eligible for a benefit stipend, the benefit stipend shall be applied to the monthly benefit of the member's designated survivor and option beneficiary. (c) Nothing contained in this section shall require the Arkansas Public Employees' Retirement System to pay any portion of the benefits provided for in this section. (d) (1) The board may remove by board resolution the benefit stipend from the base amount of current retirees and option beneficiaries if the board determines that the removal of the benefit stipend from the base amount is prudent in order to maintain actuarial soundness. (2) The board may phase in the removal of the benefit stipend from the base amount of current retiree and option beneficiaries by board resolution.

Legislative History

Amended by Act 2023, No. 107,§ 50, eff. 7/1/2023. Amended by Act 2023, No. 107,§ 49, eff. 7/1/2023. Amended by Act 2019, No. 427,§ 14, eff. 7/1/2019. Amended by Act 2017, No. 782,§ 3, eff. 3/31/2017. Amended by Act 2017, No. 782,§ 2, eff. 3/31/2017. Amended by Act 2017, No. 782,§ 1, eff. 3/31/2017. Amended by Act 2013, No. 603,§ 1, eff. 7/1/2013. Acts 1973, No. 427, § 9; 1975, No. 549, § 8; 1979, No. 776, § 2; 1981, No. 14, § 1; 1983, No. 127, § 2; 1985, No. 162, § 1; A.S.A. 1947, § 70-1443; Acts 1987, No. 802, § 2; 1991, No. 44, § 3; 1999, No. 400, § 1; 1999, No. 1066, § 7; 1999, No. 1590, § 3; 2001, No. 360, § 1; 2001, No. 742, § 2; 2003, No. 347, § 1; 2003, No. 853, § 3; 2007, No. 297, § 1; 2009, No. 468, § 21; 2011, No. 45, §§ 12, 13.