§ 24-7-735 — Contract buyout agreement - Settlements - Judgments - Calculation of benefits

Arkansas § 24-7-735

• Jurisdiction: Arkansas
• Title: 24

Text

(a) A member shall not accumulate service credit in the Arkansas Teacher Retirement System during the time that payments under a contract buyout agreement, settlement, claim, judgment, arbitration award, decree, or court-ordered payment are paid to the member by the employer unless the member continues to work on-site for the employer, or the service credit or additional salary is purchased as provided under subsection (c) of this section. (b) (1) The employer shall provide a copy of a settlement agreement or court order under this section to the system so that the system can: (A) Prevent the accumulation of service credit for any payments that are not for on-site work for the employer; and (B) Calculate the cost to purchase service credit, additional salary, or both service credit and additional salary as provided under this section. (2) A member shall not receive service credit or additional salary from the system under a settlement agreement or court order unless permitted under this section. (c) (1) The system shall allow a member or employer to purchase service credit, additional salary, or both for the member for service credit the member would have earned but for termination, or salary that would have been paid but for employment discrimination to resolve a claim of wrongful termination or employment discrimination that results in a settlement agreement or court order. (2) The member's official salary record shall be adjusted to include the purchased additional salary which may be used to compute the final average salary at the time of retirement if the purchased salary qualifies for the final average salary calculation. (3) Service credit earned by a member from an employer from the date of termination by an employer to the date of the settlement agreement or court order shall be subtracted from the amount of service credit allowed for purchase under subdivision (c)(1) of this section. (4) (A) Service credit purchased under a settlement agreement or court order shall offset service credit that is earned by the member as an employee of another covered employer during the same period of time covered by the service credit purchased under the settlement agreement or court order. (B) Service credit purchased under a settlement agreement or court order shall not be applied by the system in a manner that allows the member to earn more than one (1) year of service credit in a fiscal year. (d) (1) The cost to purchase service credit, additional salary, or both shall be established using the actuarial equivalent as calculated by the system using the member's service history at the time of the purchase. (2) The system shall use the same factors to determine the cost of the additional salary purchase as used to calculate an additional monthly benefit in the annuitization of a Teacher Deferred Retirement Option Plan distribution. (3) The calculation shall be made with the assumption that the member would have immediately retired at the time of the additional salary purchase.

Legislative History

Amended by Act 2023, No. 107,§ 57, eff. 7/1/2023. Amended by Act 2021, No. 279,§ 30, eff. 7/1/2021. Amended by Act 2017, No. 436,§ 3, eff. 3/9/2017. Amended by Act 2013, No. 521,§ 2, eff. 3/28/2013. Acts 2011, No. 163, § 2.