The bill amends the Arkansas Teacher Retirement System by redefining the term "gap year" to "gap period" and specifies that a gap period is one-quarter (1/4) of a fiscal year. It outlines the conditions under which a member can purchase permissive service credit for one or more gap periods, including having five years of actual service, being inactive during the gap period, and returning to their position as a classroom teacher. The bill also establishes that members can purchase one-quarter year of permissive service credit for each gap period, with a maximum of five years of credit available for purchase.

Additionally, the bill includes an emergency clause, stating the need for immediate revisions to the Arkansas Teacher Retirement System to address administrative complexities and ensure compliance with public pension policy. The act is set to take effect on July 1, 2025, to align with the fiscal year and facilitate proper administration of the updated provisions.

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