Public Retirement & Social Security Programs-Joint

to order, chair sees a quorum. Um Looks like first up we have House Bill 1154 by Representative Warren. Chairman Warren, if you would. Take a seat? If anybody's coming up to present with you. You guys would state your names for the record and you're recognized to begin. Thank you, Mr. Chairman. Les Warren, Representative District 84. Thing was chairman Mark White, Arkansas Teacher retirement System. You want me to start with 11:54. OK. House Bill 1154 is teacher retirement's omnibus bill, uh, number one, it makes technical corrections needed to correct typos and errors in current law that they come across over the last two years. Secondly, it removes references to repealed laws. Number 3, it removes redundant or outdated language and provisions, and number 4, it makes application timelines consistent throughout the code. There were a couple of places where it wasn't consistent, so this is making it consistent all throughout the code, uh, there is no fiscal impact, uh, and I am glad to answer any questions if you want to look at any of the specific, uh, sections that were amended. You've heard a presentation of the bill. Does anybody have any questions? See none. Is anybody in the audience? want to speak for or against. See none. Representative Warren, you're recognized to close for your bill. I make a motion do pass, and I would appreciate a good vote. Got a motion. I got a second. Any discussion on the motion, seeing none, all in favor. I, and he opposed? Motion carries House Bill 1154 is adopted, uh, House Bill 1155, you're recognized to present. Thank you, Mr. Chairman. Uh, this bill allows Arkansas teacher retirement to accept a 100% service connected disability rating from the US Department of Veterans Affairs as creating a rebuttable presumption of qualification for disability retirement benefits. Currently, uh, law provides the same for 100% disability findings from the Social Security Administration. So this bill would provide equal treatment for VA disability ratings for veterans. Uh, the system's actuaries have been have uh found that any cost of this bill would be small and would not have material impact on teacher retirement. I'd be glad to answer any questions. Do you have any questions from the committee, saying none, uh. If no one signed up to speak for or against. Warn you recognized clothes. I would appreciate a good vote. I make a motion do pass. I have a motion. A second, any discussion on the motion. Signan, all in favor. Any opposed? Ocean carries House Bill 1155 is adopted. House Bill 1156, you're recognized to present. Thank you, Mr. Chairman. House Bill 1156 shortens the waiting period for when a new spouse can become eligible for survivor benefits from 2 years preceding the member's death to one year. This change will mirror the one year waiting period in current law for asers and Lotfi Apers actually has waiting period of 6 months. Uh, when teacher retirement brought rules revisions to the joint public retirement Committee last year, uh, several legislators on the committee raised the issue and asked teacher retirement to consider legislation to reduce the waiting period. The system's actuaries have found that any cost, uh, of this bill would be very small and would not have a material impact on teacher retirement, so basically with this bill we're just trying to get in line so that uh if someone remarries, uh, it's just a one-year waiting period before they would be able to get the benefits. If I OK. You've heard a presentation of the bill. Are there any questions? Sing none, uh, there's no one signed up to speak for or against, Representative Warren, you're recognized to close. I would appreciate a good vote. I make a motion do pass. I have a motion. In a second Any discussion on the motion? Seeing none, all in favor. I, and he opposed? Motion carries. House Bill 1156 is adopted. Move on to House Bill 1157, Representative Perry. You are recognized to present House Bill 1157. Thank you, Mr. Chairman, members, House Bill 11, I'm Mark Perry, District 66. Uh, House Bill 1157 is to amend the law concerning survivor annuity benefits for dependent children. Under the Arkansas teacher retirement system. Uh, this bill will make 2 changes for surviving children. It allows a surviving child to collect survivor benefits through age 22, even if the child does not remain a full-time student. Is your, as you're aware of the current law stops survivor benefits at age 18 for children who go into the military, go into an apprenticeship or work instead of a continuing school. Children who remain in school full time are currently eligible. To receive benefits through age 22. The other change it makes, it allows survivor benefits for eligible children of deceased members who were on disability retirement. The current law limits survivor benefits to eligible children of deceased active members, Tro participants are retired members who have returned to work. For an ATRS covered employer. ATRS feels that are surviving child should not be denied benefits on the basis of their deceased parents' disability. The system's actuaries have found that at any cost, this bill would be very small and would not have a mere material impact on the plane. With that, I'll take any questions. Representative. Uh, Andrews, you are recognized for a question. Thank you, Mr. Chair. Uh, Perry, um, why 22, not 21. I will, I'll refer that to my expert witness. Alexandrews we're keeping that same age that as it is in current law, and the reason was that it was intended to follow that child through, uh, college, uh, and once they hit 22, that allows them to get through most of college and then in that at age 22. Got you. OK. And Mark, if you would identify yourself with the record for this bill. Yes, sir, Mr. uh, Mark White, Arkansas Teacher retirement System. Are there any other questions? Representative Duke, you are recognized. Thank you, Mr. Chair. Could you just, um, elaborate a little bit more on why the move from adding up to 22 on there and just the expanding that some laws we allow those benefits through age 18 and once you get past age 18, the only way to continue receiving those benefits is if you enroll in college full time. So for example, if that child goes into the military or if they go into an apprenticeship or if they choose to work instead of. went to school, those benefits are excluded, uh, and as, uh, one of our board members put it when the board was discussing this and brought this up, uh, last year. In the, in the board's view, these are the child's benefits and we shouldn't be uh conditioning that on they have to go to college and not make any of those other choices. Representative Rye. Thank you, Mr. Chairman. Mark, in this situation of 22, you're basically. Working in like a 4 year period for a bachelor's degree, time frame, aren't you? Yes, sir. OK, thank you. uh, Senator Hammer. Thank you. Let's listen to that portion of the conversation, address, what about if somebody doesn't go to college because we're making a big push to the career path now and what if they, what if they choose a career path instead of college, and they get done sooner than the 22, just, I just. Hear your response. Yeah, uh Under current law, if they, you know, go to another option. Are they in college and that, that ends their benefits with this bill, it would just continue on through age 22. OK, so it's not going to be punitive toward the one that picks the career path then. OK, good deal. Thank you. Right, so no other questions, um, we have no one signed up to speak for or against Representative Perry, you're recognized to close for your bill. I'm closed for the bill and recommend do pass. We have a motion to pass. I have a second. Any discussion on the motion? Seeing none, all in favor. And he opposed? Motion carries. House Bill 1157 is adopted. House Bill 1158 represent fairer recognized. Thank you, Mr. Chairman. This is another, um, Teacher retirement bill, uh, 11:58, uh, this modifies the code concerning the election and distribution options under the T drop, which is the teacher Deferred retirement option. So the bill modifies the code by allowing, adding subdivision 3, which allows a member to cancel his or her tee drop distribution election. Before the end of the 2nd full calendar month immediately following his or her effective retirement date, providing that the member did not elect to receive all or part of the balance in the plan account as a lump sum payable to our IRS code, eligible rollover transaction and has not previously changed his or her election. The member would also be required to file a new distribution election form and repay the amount that he or she no longer is entitled to have received as a result of the election. So presumably the member could have the option to elect a different method of distribution or create a cash bound account with the system. So this allows them to actually do over within a two month time period. So. In the, uh, analysis has been made that this would have very little impact to the system. With that, I'll take any questions. So if they did all of this, I know they have to meet all, all of these requirements and it's an and after SD so they have to do everything on here. All right Uh, any questions from the committee? Seeing none, we have no one signed up to speak for or against Representative Perry, you're recognized to close for your bill. I'm closed for the bill and recommend uh do pass. I have a motion. So. Uh, I have a motion and a second. Second, any discussion on the motion, seeing none, all in favor? Any post? Motion carries. Thank you, Mr. Chair. House Bill 1157 is adopted. House bill or 1158 is adopted, excuse me. We are now on to House Bill 1160. Representative Moore. You are recognized to present House Bill 1160. Thank you, Mr. Chairman Kendra Moore, District 23. I'm presenting House Bill 1160. It's to amend the law concerning permissive service credit for gap year service under the Arkansas Teacher retirement System. Currently, if you're a classroom teacher and you leave the teaching profession for a period of time and then you come back to be a classroom teacher based on current law, you're allowed to purchase a service credit for those gap years. This service credit purchase was allowed in Act 125 of 2023, but this act allows you to buy back only in full years, not a portion of that year. So, Arkansas teacher retirement system members expressed the desire to be allowed to purchase service credit for those situations where they've not missed an entire year. For example, if a teacher took a semester off for maternity leave, this would allow them to come back and purchase a, a portion of that. So the bill changes the term gap year to gap period in multiple places in the code to allow members to purchase as little as 25% of a year of service. And with that, I'm open to any questions. You've heard a presentation of the bill. Are there any questions by the committee? Seeing none, we have no one signed up to speak for or against. Representative Moore, you're recognized to close for your bill. Thank you, Mr. Chairman. I'm closed for my bill and I appreciate a good vote and make a motion to pass a motion. Second. Is there any discussion on the motion? Seeing none, all in favor. Any opposed? Motion carries. Congratulations, you passed House Bill 1160. You are recognized to present House Bill 1161. Thank you, Mr. Chairman. 1161 is to clarify the law concerning an election to change annuity options within one year of retirement under the Arkansas Teacher retirement System. This is just a cleanup bill that clarifies current law that allows Arkansas teacher retirement system members to change their annuity option within one year of their retirement. When a member retires, they're paid that monthly payment called an annuity, and when that member applies for retirement, they're given the opportunity to choose from one of 4 possible options. So if a member decides to change from that original option that they opted in for this bill just makes it explicit that that option change does not become effective until the month after the member has submitted that request. through the required form and paid any cost difference that is owed for that change. The current law is just a little bit ambiguous on this point. So just making some clarifying language there. There's also a little bit of outdated language for some date references to 1995, there are no longer applicable and those are to be stricken as well. And with that, I'm open to any questions. Thank you. You've heard a presentation of the bill. Is there any questions from the committee? Saying none, no one signed up to speak for or against, uh, you're recognized to close for your bill. Thank you, Mr. Chairman. I am closed and appreciate a good vote and make a motion to pass. You got a motion. I got a 2nd. Any discussion on the motion? Seeing none, all in favor. And he post? Motion carries congratulations, you've passed House Bill 1161. Thank you, Mr. Chairman. Thank you. Representative Warren, you're recognized for some comments. OK, committee, so we basically have gone through. Uh, all but I believe one of the system bills, I think we still have one to come from, uh. Apers That we're we're working on, uh, making some changes to make that clear. So now we will shift to the individual bills and Dodson and I are gonna meet with uh the group after this to pick the next, uh, group of bills that. The actuary will prepare the study on so that we can present next week so, uh, but we're starting to look at the individual bills that other people other than the systems, uh, brought forth, so, uh. Plan to come back next week, uh. This is pretty good for 3 meetings and uh we've done basically all the system bills that that may be a record, uh, for retirement, so. Uh, anyway, stay tuned, uh. Planned to be here next week and uh we're gonna try to wipe these out as quickly as we can. It's just gonna depend on how quickly, uh, Jodi can get the actuarial studies done, so. Stay tuned and we'll see you next week. All right.