Arkansas Administrative Code
Agency 088 - Arkansas Teacher Retirement System
Rule 088.00.17-001 - Rule 6-2: Reciprocity
Universal Citation: AR Admin Rules 088.00.17-001
Current through Register Vol. 49, No. 2, February 2024
RULE 6-2 RECIPROCITY
A.C.A. §§ 24-2-401-408 as amended by Act 1022 of 2005, Acts 97 and 297 of 2007, and Act 555 of 2013, Act 612 of 2017
I.
DEFINITIONS
A.
Reciprocal System means the
Arkansas Teacher Retirement System in operation June 30, 1957, and continued by
statutes; the Arkansas State Highway Employees' Retirement System, established
by A.C.A. § 24-5-103; the Arkansas Public Employees' Retirement System
established by A.C.A. § 24-4-103; the Arkansas State Police Retirement
System established by A.C.A. § 24-6-203; the Arkansas Judicial Retirement
System established by A.C.A. § 24-8-201; the Arkansas District Judge
Retirement System established by A.C.A. §§ 24-8-801-824; the Arkansas
Local Police and Fire Retirement System provided for under A.C.A. §
24-10-101; or an alternate retirement plan for a public college or university,
or the Arkansas Department of Higher Education provided for under A.C.A. §
24-7-801 et seq., or for a vocational-technical school or the
Department of Workforce Education (formerly the Division of Vocational and
Technical Education) provided for under A.C.A. § 24-7-901 et
seq.
B.
State
Employer means the public employer whose employees are covered under the
Arkansas Teacher Retirement System, the Arkansas State Highway Employees'
Retirement System (A.C.A. § 24-5-103), the Arkansas Public Employees'
Retirement System (A.C.A. § 24-4-103), the Arkansas State Police
Retirement System (A.C.A. § 24-6-203), the Arkansas Judicial Retirement
System (A.C.A. § 24-8-201), or the Arkansas District Judge Retirement
System (A.C.A. §§ 24-8-801-824). "State employer" also includes a
public employer that is a college, university, or the Arkansas Department of
Higher Education (A.C.A. § 24-7-801 et seq.), or a
vocational-technical school or the Department of Workforce Education (formerly
the Division of Vocational and Technical Education (A.C.A. § 24-7-901
et seq.).
C.
Alternate Retirement Plans refers to the retirement plan(s) of a
public college or university, or the Department of Higher Education provided
for under A.C.A. § 24-7-801 et seq., or for a
vocational-technical school or the Department of Workforce Education (formerly
the Division of Vocational and Technical Education) provided for under A.C.A.
§ 24-7-901 etseq.
D.
Preceding System is a
previous reciprocal retirement system of record as defined above.
E.
Succeeding System is the
current reciprocal retirement system of record, following membership in a
retirement system covered above
II.
SUMMARY OF RECIPROCAL
SERVICE
If a member leaves the employ of a state employer whose position is covered by any of the retirement systems listed above and enters the employ of another state employer whose position is covered by any of these retirement systems, the member shall be entitled to a deferred annuity according to A.C.A. § 24-2-401 et seq.
A.
Age
and Service Retirement with Reciprocal Service Credit
i. If ATRS is the preceding system, the
member's annuity begins the first day of the month following the month the
application was filed or after attainment of age 60 years, whichever is later.
However, should the member have combined service of at least 25 years, the age
limitation shall not apply. The deferred annuity shall not begin prior to the
date of leaving the employ of the last state employer unless the member reaches
age 65.
ii. If ATRS is the
preceding system, the member is eligible to apply for benefits without leaving
the employ of the last state employer upon reaching age 65. The member's
annuity will begin the first day of the month following the month the
application was filed or after attainment of age 65, whichever is later. Only
service credited and salaries earned prior to the ATRS effective date of
benefits will be used in the ATRS benefit calculation.
B.
Disability Retirement with
Reciprocal Service Credit
i. A member
is eligible to apply for disability benefits under A.C.A. § 24-2-405 from
each reciprocal system in which he or she has credited service according to
rules for eligibility promulgated by that system.
ii. The member's annuity for disability
retirement payable by the preceding reciprocal system shall begin the first day
of the month following the month the application was filed with the preceding
system, but not prior to the date of leaving the employ of the last state
employer.
III.
RULES
A. A member who leaves a position covered by
the Teacher Retirement System, becomes employed by a reciprocal system, and
files a reciprocal service agreement becomes an inactive member and may become
eligible for the benefit formula in effect at the time of retirement.
B.
i.
Benefits will not be paid under reciprocity from ATRS as the preceding system
until the member has ceased to be in the employ of a state employer unless the
member reaches age 65.
ii. If ATRS
is the preceding system, the member is eligible to apply for benefits without
leaving the employ of the last state employer upon reaching age 65. The
member's annuity will begin the first day of the month following the month the
application was filed or after attainment of age 65, whichever is later. Only
service credited and salaries earned prior to the ATRS effective date of
benefits will be used in the ATRS benefit calculation.
C. Benefits will not be paid under
reciprocity from ATRS as the preceding system earlier than age 60 unless the
member has 25 or more years of combined service.
D. No minimum benefits apply under Act 488 of
1965 [A.C.A. § 24-2-402(5)(E)], as amended, for reciprocal service unless
the member has five (5) or more years of credited service in ATRS.
E. If the survivor benefits are payable by
more than one reciprocal system to eligible survivors of a deceased member, the
survivors shall not receive more, as a percentage of the deceased member's
final pay or as a minimum dollar amount than the largest amount payable by a
single reciprocal system. ATRS will prorate minimum benefits payable with other
reciprocal systems that have a minimum benefit provision in their plans. Each
reciprocal system shall pay a proportionate share of the minimum amount based
on the ratio of service in that system to the total service in all reciprocal
systems. If the reciprocal system is an alternate retirement plan, survivor
benefits shall be contingent upon provisions of that benefit having been
provided by the alternate retirement plan and having been selected by the
member as a benefit. [A.C.A § 24-2-402 (5)]
F. If an employee of the Department of Human
Services who becomes a member of the Public Employees Retirement System under
the provisions of Act 793 of 1977, as amended, leaves employment with the
Department of Human Services and becomes employed in another position covered
by ATRS, the benefits for service, both before and after any service under Act
793, shall be subject to the benefit provisions of the Teacher Retirement law.
Such member shall be eligible to establish reciprocity under the provisions of
Act 488 of 1965 as amended.
G. If
an ATRS member has service credited during the same fiscal year with another
reciprocal system and the combined service is greater than one year of service
credit, ATRS will credit service as follows:
i. If credit by the reciprocal system is less
than three (3) months, ATRS will credit service for one (1.00) year.
ii. If credit by the reciprocal system is
three (3) or more months but less than six (6) months, ATRS will credit service
for three-fourths (3/4) year.
iii.
If credit by the reciprocal system is six (6) or more months but less than nine
(9) months, ATRS will credit service for one-half (1/2) year.
iv. If credit by the reciprocal system is for
nine (9) months but less twelve (12) months, ATRS will credit service for
one-fourth (1/4) year.
H. While participating in a reciprocal
system, back contributions, additional contributions, and repayment of refund
payments made to ATRS shall be made according to payment methods contained in
Rule No. 8-5 (Purchase Payment Rules), except employer pick-up is prohibited
while working for a noncovered ATRS
employer.1
I. A member may elect to waive all or part of
concurrent service credited to the member in ATRS and have the waived
concurrent service credited under a reciprocal system by submitting their
intention to ATRS on an ATRS approved form (A.C.A. § 24-7-601 (g)).
HISTORY
Amended: July 18, 2005, Act 1022
April 26, 2007, Acts 97 and 297
Approved by Board: July 26, 2013
Amended: October 9, 2013, Act 555
Effective: November 8, 2013
Approved by Board: February 5, 2018 Effective:
1 From July 1, 1991, until December 31, 1991, an active member of the Public Employees Retirement System who was an active member of the Teacher Retirement System prior to January 1, 1978, and who became a member of the Public Employees Retirement System within thirty (30) days of departure from the Teacher Retirement System may establish reciprocity between the two systems and purchase out-of-state service rendered prior to January 1, 1978, in accordance with the provisions and conditions contained in A.C.A §24-7-601 and § 24-7-603. Effective July 1, 1993, for a ninety (90) day period, employees of the Arkansas Rehabilitation Services may transfer from the Public Employees Retirement System to the Teacher Retirement System under Act 574 of 1993. Any employee making the change will establish reciprocity between the two systems, and Act 793 of 1977 shall no longer apply.
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