Ark. Code Ann. § 24-2-701 (2020)

1. The general financial objective of each Arkansas public employee retirement plan shall be to establish and receive contributions that, expressed as percentages of active member payroll, will remain approximately level from generation to generation of state citizens. More specifically, contributions received each year shall be sufficient both:
   1. To fully cover the costs of benefit commitments being made to members for their service being rendered in that year; and
   2. 1. To make a level payment that if paid annually over a reasonable period of future years will fully cover the unfunded costs of benefit commitments for service previously rendered.
      2. Alternatively, if the costs of benefit commitments for service previously rendered are overfunded, the plan may deduct a level payment that if deducted annually over a reasonable period of future years will fully liquidate the overfunded portion of such costs.
2. Each state public employee retirement plan shall cause an actuarial valuation of the plan or fund to be made at least biennially, and preferably annually, to determine how well the plan is meeting the objectives set forth in subsection (a) of this section.
3. The employer contribution rates to the retirement systems shall be as follows:
   1. 1. For the Arkansas Teacher Retirement System, the Board of Trustees of the Arkansas Teacher Retirement System shall establish employer contribution rates prospectively each year.
      2. The employer contribution rates shall be based on the actuary's determination of the rate required to fund the plan as necessary to meet the general financial objective set forth in subsection (a) of this section.
      3. The employer contribution rates shall be the rates determined by the Board of Trustees of the Arkansas Teacher Retirement System under § 24-7-401(c) and based on the annual actuarial valuation of the Arkansas Teacher Retirement System;
   2. For the State Police Retirement System, twenty-two percent (22%); and
   3. 1. For the Arkansas Public Employees' Retirement System, the Board of Trustees of the Arkansas Public Employees' Retirement System shall establish employer contribution rates prospectively each year, and the rates shall be based on the actuary's determination of the rate required to fund the plan in accordance with the objectives set forth in subsection (a) of this section.
      2. The employer contribution rates shall be the rates determined by the annual actuarial valuation.
4. Subsection (c) of this section shall not be construed as affecting in any way the existing methods of determining the years of credited service for computing benefits or determining retirement eligibility.

History. Acts 2001, No. 151, § 8; 2003, No. 340, § 1; 2005, No. 1968, § 1; 2006 (1st Ex. Sess.), No. 19, § 8; 2007, No. 403, § 1; 2019, No. 427, § 1.

A.C.R.C. Notes. House Concurrent Resolution, No. 1003, Acts 2006 (1st Ex. Sess.), provided:

“WHEREAS, call item 13 allows for the consideration of bills concerning the Arkansas Teacher Retirement System employer contribution rate at the First Extraordinary Session of the 85th General Assembly; and WHEREAS, Arkansas Code § 10-2-115 and Rule 16(d) of the Joint Rules of the House of Representatives and the Senate provides that a bill affecting any publicly supported retirement system or systems shall not be introduced or considered at any special session of the General Assembly unless the introduction and consideration of the bill is first approved by a three-fourths (¾) vote of the full membership of each house of the General Assembly, NOW THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE EIGHTY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, THE SENATE CONCURRING THEREIN:

“That the House of Representatives and the Senate hereby authorize the introduction and consideration of bills providing that for the fiscal years ending June 30, 2006, and June 30, 2007, the Arkansas Teacher Retirement System employer contribution rate shall not exceed fourteen percent (14%).”

The date “June 20, 2009” in subdivision (c)(1)(D) of this section does not appear to be correct. The date should probably be “June 30, 2009”.

Amendments. The 2019 amendment deleted “for the fiscal years ending June 30, 2008, and June 30, 2009” preceding “the Board of Trustees” in (c)(1)(A); substituted “as necessary to meet the general financial objective” for “in accordance with the objectives” in (c)(1)(B); substituted “under § 24-7-401(c) and based on the annual actuarial valuation of the Arkansas Teacher Retirement System” for “based on the annual actuarial valuation” in (c)(1)(C); and deleted (c)(1)(D).