Current through Register Vol. 49, No. 9, September, 2024
AGE AND SERVICE RETIRANT
1. Except for a waiver provided in accordance
with Act 30 of 1999 and Act 1146 of 2001, as amended by Act 911 of 2005, if a
retirant returns to service - as an employee of a public employer whose
employees are covered by ATRS1 -without rescinding
his/her retirement under Act 39 of 1989 (A.C.A. §
24-7-717), then, for
each twelve-month period ending June 30, the amount of his/her System annuity
shall be subject to the limitations equivalent to twice the limitations imposed
by the Social Security retirement test. The amount a retirant may earn and
still collect full benefits depends upon whether he/she has reached "full
retirement age (FRA)" as defined in P.L. 106-182.
A. Effective for years ending after December
31, 1999, pursuant to P.L. 106-182, which eliminated the Social Security
retirement earnings test in and after the month a person attains "full
retirement age (FRA)," a retirant reaching full retirement age may return to
service without being subject to the earnings limitations. "Full retirement age
(FRA)" will gradually increase from age 65 to age
67.2
B.
Effective July 1, 1992, a retirant who is under age 65 may earn up to twice the
Social Security earnings limitation amount without affecting his/her ATRS
benefits. If his/her ATRS covered earnings exceed that amount, $1 in benefits
will be deducted for each $2 earned above the earnings limitation
amount.
C. For each year ending
June 30, the Social Security retirement test to be considered shall be the test
in effect for the calendar year beginning the January 1 immediately preceding
June 30. The retirant's earnings shall be his or her remuneration for the
employment for the year ending June 30.
1
(Prior to July 1, 1991, the earnings limitation applied to retirants who were
* employees with ATRS, ASHERS, or ASERS from 7-1-71 through
6-30-77;
* employees with a public employer, whose employers are covered
by a state-supported retirement plan or the University of Arkansas from 7-1-77
through 6-30-78;
* employees of a public employer whose employees are covered by a
retirement plan supported wholly or in part by state contributions from 7-1-78
through 6-30-91.)
2
Previously, a retirant aged 65 to 69 could earn up to twice the Social Security
amount without affecting his/her ATRS benefits. If his/her ATRS covered
earnings exceeded that amount, $1 in benefits was to be deducted for each $3
earned above the earnings limitation amount.
D
i. For
those retirants exceeding the earnings limitation, the System will suspend
payment of benefits in the fiscal year in which the earnings limitation is
exceeded; however, if the System is not notified in a timely manner, the System
may carry over suspension of benefits into the next fiscal year.
ii. In the case of hardship to the retirant
or for the convenience of the System, upon request of the retirant, the System
may negotiate an alternate method of repayment other than total suspension of
retirement benefits for the recovery of the amount of benefits that exceeded
the earnings limit.
iii. The amount
recovered by ATRS will not exceed the amount of benefits paid during the
year(s) in which the earnings limitation is/was exceeded.
iv. For questions not covered by this rule,
see No. 9-6 (Error Corrections and Collection of Overpayments).
2.
A. Employers and retirants must report
immediately, upon acceptance of employment in a position covered by ATRS, a
return to covered employment by a retirant. A Statement of Employment form must
be completed immediately by employers and retirants upon acceptance of
employment for each retirant hired in a position covered by ATRS.
B. Employers will report monthly all
retirants who have returned to full or part-time employment in an ATRS covered
position and who have not rescinded their retirement. The monthly report will
be filed on a Retired Member Returned To Service form, which will be furnished
by ATRS.
C. In the event that both
the employee and the employer fail to notify the Teacher Retirement System of a
retiree's return to service, and benefits are paid illegally due to such lack
of notice, the Teacher Retirement System shall delay restoration of benefits
until all funds paid illegally have been recovered either through direct
payment by the retiree or through delay in restoration of benefits by the
System.
3.
A. Effective July 1, 1977, a retirant may
receive remuneration as an employee from any private employer or as a member of
the General Assembly without any effect on his/her
annuity.3
B. Effective July 1, 1991, an age and service
retiree may be employed by a public employer whose employees are not covered by
ATRS without any effect on his/her annuity.
3 (From 7-1-71 through 6-30-77 this "exemption" covered employees
receiving remuneration "from any other public employer or private employer.")
4. During any period of employment in
a position covered by the System (which is not covered by Act 39 of 1989
[A.C.A. §
24-7-717(a) --(e) Rescission of Termination]), an age and service
retiree shall not accrue additional service credit in the Arkansas Teacher
Retirement System.
5.
A. Effective July 1, 1995, Act 1293 of 1995
provided that if a retirant is employed in a covered position by a state
college, university, or vocational-technical school, his annuity shall not be
subject to the limitations provided in No. 1 above.
B. Effective July 1, 1997, Act 384 of 1997
repealed Act 1293 of 1995, making subject the ATRS earnings limitation the
annuity of a retirant who is employed in a covered position by a state college,
university, or vocational-technical school, as provided in No.1
above.
WAIVER OF EARNINGS LIMITATION
1.
A. In
accordance with Act 30 of 1999 and Act 1146 of 2001 as amended by Act 911 of
2005 and with rules and regulations adopted by the State Board of Education,
the Arkansas Department of Education (ADE) may request of the ATRS Executive
Director a waiver of the conditions subjecting annuities to the ATRS earnings
limitation.
B. All requests for
waiver must originate with ADE and must be submitted for approval by ATRS
within sixty (60) days of employment. If approved, the waiver shall be
effective for one (1) year from the date of hire or until the end of the
current fiscal year, whichever comes first, with the option to renew annually
for up to a total of three (3) years as requested by ADE. Renewals must also be
approved by the Executive Director of ATRS.
C. Waiver requests (1) initiated by the
employer prior to the member's effective date of retirement or (2) filed within
thirty (30) days following the member's effective date of retirement will not
be eligible for consideration by ATRS.
D. Effective for the fiscal year beginning
July 1, 2006, retirants who have completed the 10-year maximum duration period
allowed under T-DROP will not be eligible for a waiver.
2. Effective July 1, 2005, under Act 911 of
2005, the ATRS Executive Director is authorized to take appropriate action on
waivers of the ATRS earnings limitations requested by the Department of
Education:
A. If the retiree is hired by a
public school district due to a shortage of certified teachers in a critical
academic area in which the retiree is certified; OR
B. If the retiree is hired as a
superintendent due to a reconstitution or reorganization of a public school
district as allowed in A.C.A. §
6-15-201 et.seq., §
6-15-401 et.seq.,
or §
6-20-1901 et.seq. following an appropriate determination by the State
Department of Education that:
i. The public
school district has failed to meet standards of accreditation pursuant to
A.C.A. §
6-15-201 et.seq.; OR
ii. The public school district is in academic
distress status for failing to meet the minimum level of academic achievement
on the ACTAAP examinations pursuant to A.C.A. §
6-15-401 et.seq.;
OR
iii. The public school district
is in fiscal distress status pursuant to A.C.A. §
6-20-1901 et.seq.;
AND
iv. An appropriately qualified
applicant, as determined by the State Department of Education, who is not an
ATRS-covered retirant is not available to be employed.
3. Critical academic areas in
which there is a shortage of certified teachers shall be determined annually by
the State Department of Education.
4. Employers shall maintain audit files
identifying personnel granted a waiver and documenting the reasons for the
waiver and will be responsible for reporting to ATRS, all retirees who have
returned to employment under these provisions.
5. Beginning July 1, 2005, under provisions
of Act 911 of 2005, for any retired member employed in a position covered by
the System pursuant to a waiver, the amount paid to the System shall be equal
to the combined employee and employer contributions rate in effect at the time
of the employment and shall be remitted by the employer. The contributions
shall be paid on all salary earned in the fiscal year and shall not be
collected from the employee. These amounts shall be recorded in the ADE Waiver
Income Account.
DISABILITY RETIRANT
Disability Retiree Employed Full-Time
1. When a disability retiree is employed in a
position covered by the Teacher Retirement System as a full-time employee, the
Teacher Retirement System is required to remove the retiree from the disability
payroll. It is the responsibility of the employee and employing agency to
report such employment to the retirement office immediately. The employing
agency will report salary and service as described on page 10-2-2 under Age and
Service Retirant, Nos. 2A and 2B above. Unless the retiree was a member of the
noncontributory plan, it is also the responsibility of the employing agency to
withhold employee contributions.
2.
If the retiree completes a minimum of 120 days or more during a fiscal year in
Arkansas, thus adding a year's service credit, the retiree can then again make
application for disability or age and service retirement, and the benefits will
be recomputed based on the additional year or years of service
credit.
3. Full-time employment is
defined as a member working at least 480 hours in a fiscal year.
4. If a disability retirant under age 60
becomes employed as a full-time employee by a public employer whose employees
are covered by a retirement plan supported wholly or in part by state
contributions his/her disability retirement shall terminate. His/her credited
service and accumulated contributions at the time of disability retirement
shall be restored to his/her credit in the Member's Deposit Account, and the
person shall immediately again become a member of the System, if
eligible.
5. If a disability
retirant returns to full-time employment and receives credited service but dies
before completing 120 days of creditable service, a determination must be made
by the System as to whether survivor or disability benefits will be
payable.
Disability Retiree Employed Part-Time
1. Part-time employment is defined as a
disability retiree working less than 480 hours in a fiscal year.
2. A disability retiree employed part-time
will be subject to the same earnings limitation policy as age and service
retirees (see above); however, a waiver of the earnings limitation is not
available for disability retirees.
3. A disability retiree shall not be
permitted to purchase or establish service credit when employed in a part-time
position.
4. A disability retiree
shall not be given service credit during the time in which he/she receives a
disability annuity (Act 541 of 1977).
Amended: June 15, 2004
July 18, 2005
October 4, 2005
