§ 24-7-1601. Legislative history — Findings — Intent

(a) It is found and determined by the General Assembly that:

1. (1) The establishment of the Post-Secondary Education Plan is a historical component of retirement legislation that seeks to develop a more equitable retirement system for members of the Arkansas Teacher Retirement System; and

2. (2) Confusion about the intent of the General Assembly concerning the coverage of employees of state-supported universities, colleges, junior colleges, and vocational-technical schools, the Arkansas Higher Education Coordinating Board, the Division of Career and Technical Education, the Adult Education Section, the Office of Skills Development, and Arkansas Rehabilitation Services, and any other entity offering both the Arkansas Teacher Retirement System retirement plan and an alternate retirement plan create uncertainty in the administration of law, and legislative clarification of the law is needed.

(b)

1. (1) Historically, the Arkansas Teacher Retirement System has been mandated by the General Assembly to provide retirement benefits for an employee of a public school, public educational agency, or any other eligible employer included for coverage in the Arkansas Teacher Retirement System.

2. (2) Originally, the Arkansas Teacher Retirement System was designed to provide retirement benefits to certified teachers and administrators in the public schools. However, the coverage has gradually been extended to all employees of the public schools and to other public entities that support educational activities in Arkansas.

3. (3) Beginning with legislation in 1967 and continuing through the early 1980s, the General Assembly created a right for certain colleges, vocational-technical schools, and the Arkansas Higher Education Coordinating Board to establish and maintain an alternate retirement plan for its employees and perform all the functions reasonably appropriate in the retirement plan’s administration.

4. (4) The general intent of the early legislation was to allow those institutions of higher education employers to offer their employees the option to participate in an alternative retirement plan, the Arkansas Teacher Retirement System retirement plan, or the Arkansas Public Employees’ Retirement System retirement plan.

5. (5) The law was designed to encourage recruitment of public school teachers and administrators into postsecondary positions by allowing them to continue in the Arkansas Teacher Retirement System and to encourage recruitment of private and out-of-state educators by the use of the alternate retirement plan that is offered nationwide.

(c)

1. (1) The Arkansas Teacher Retirement System requested an Attorney General’s opinion for legal clarification, as the laws have been amended over time making the wording difficult to interpret.

2. (2) All public school employees are mandatory members of the Arkansas Teacher Retirement System as a condition of employment. The uncertainty is with employees of institutions of higher education employers, specifically:

   1. (A) Whether an institution of higher education employer can exclude a part-time employee from participation in the Arkansas Teacher Retirement System and thereby be exempt from reporting salary and remitting member or employer contributions for its part-time employees; and

   2. (B) Whether a retired Arkansas Teacher Retirement System member can be enrolled in the institution of higher education employer’s alternate retirement plan with or without separation while simultaneously drawing retirement benefits from the Arkansas Teacher Retirement System.

3. (3) The Attorney General’s Opinion No. 2009-164, dated March 16, 2010, concludes that the current laws related to the Arkansas Teacher Retirement System are difficult to understand, as the intent of the General Assembly is not clear, and legislative clarification is required.

(d) Therefore, the General Assembly finds that this subchapter is necessary to:

1. (1) Protect the retirement benefits for employees of the public school system;

2. (2) Provide fair treatment and clear intent with respect to part-time employees and full-time employees of institutions of higher education employers;

3. (3) Clarify the obligations of the Arkansas Teacher Retirement System with respect to its members who become employed by an institution of higher education employer; and

4. (4) Set forth requirements that supersede any prior legislation relating to employees of institutions of higher education.