The bill amends the Arkansas Teacher Retirement System's regulations regarding permissive service credit for "gap periods," which are defined as one-quarter of a fiscal year during which a member was inactive and either unemployed or not providing qualified service. The term "gap year" is replaced with "gap period" throughout the legislation. Members of the Arkansas Teacher Retirement System can purchase permissive service credit for these gap periods, provided they meet specific criteria, including having five years of actual service, returning to their teaching position after the gap period, and being inactive during that time.

Additionally, the bill stipulates that members can purchase one-quarter year of permissive service credit for each gap period, with a maximum of five years of credit available. The bill also includes provisions for the payment of the actuarial equivalent of benefits for each quarter year purchased and outlines conditions under which payments can be refunded. An emergency clause is included, declaring the need for immediate revisions to the Arkansas Teacher Retirement System to address administrative complexities and ensure compliance with public pension policy, with the act set to take effect on July 1, 2025.

Statutes affected:
HB 1160: 24-7-202(23)
Act 227: 24-7-202(23)