§ 24-5-122 - Early retirement incentives.
24-5-122. Early retirement incentives.
(a) (1) Any member of the Arkansas State Highway Employees' Retirement System who retires as provided in 24-5-112, shall receive an annuity consisting of the benefits provided in 24-5-115 and 24-5-118, provided the member is an active member of the system on March 12, 1987, and is vested for a full age and service annuity on March 12, 1987, and has credit in the system for thirty-six (36) consecutive months of actual service with the system immediately prior to member's effective retirement date, and he may choose two (2) of the retirement incentives from subdivisions (a)(2)-(5) of this section, provided the member retires during the period between March 12, 1987, and January 1, 1988, inclusive.
(2) In addition to the member's regular annuity, the system will pay to the State Employees Group Insurance Plan, or a successor plan by whatever name it may be known, the total insurance premium for the health, hospitalization, and basic life insurance for the member only, provided that the member was insured by the state group plan at the date of retirement.
(3) For the purpose of computing the member's annuity, the highest twelve (12) months' salary for which contributions have been paid to the system will be substituted for the member's average compensation as provided by 24-5-112 and 24-5-114 -- 24-5-118.
(4) For the purpose of computing the member's annuity, an additional service credit equal to ten percent (10%) shall be added to the member's service credit at date of retirement, even though the service thus added exceeds the thirty-five (35) years maximum stated in 24-5-112(b).
(5) (A) The retiring member may receive a retirement bonus which is a lump-sum payment equal to ten percent (10%) of the final twelve (12) months' actual salary earned by the member to date of retirement, not to exceed five thousand dollars ($5,000).
(B) The retirement bonus shall be paid from funds appropriated to the system.
(b) (1) An active member of the system on March 12, 1987, whose benefits are vested and who is entitled to a reduced annuity as provided by 24-5-114 on July 1, 1987, and who has credit in the system for thirty-six (36) consecutive months of actual service with the system immediately prior to the effective retirement date may choose two (2) of the retirement incentives from subdivisions (b)(2)-(6) of this section, provided the member retires during the period July 1, 1987, through January 1, 1988, inclusive.
(2) In addition to the member's reduced early annuity, the system will pay to the State Employees Group Insurance Plan, or to a successor plan by whatever name it may be known, the total insurance premium for the health, hospitalization, and basic life insurance for the member only, until the retired member has attained age sixty-five (65), provided that the member was insured by the state group plan at date of retirement.
(3) For the purpose of computing the member's reduced annuity, the highest twelve (12) months' salary, for which contributions have been paid to the system, will be substituted for the member's average compensation as provided by 24-5-112 and 24-5-114 -- 24-5-118.
(4) If the member is eligible for an early reduced annuity as provided by 24-5-114 and is within two (2) years of full annuity age, then the member's annuity will not be reduced because of early retirement.
(5) If the member has attained the full benefit age as provided by 24-5-114 and is within two (2) years of attaining the service requirement for a full annuity, then the member's annuity will not be reduced because of early retirement.
(6) (A) The retiring member may receive a retirement bonus which is a lump sum payment equal to ten percent (10%) of the final twelve (12) months' actual salary earned by the member to date of retirement, not to exceed five thousand dollars ($5,000).
(B) The retirement bonus shall be paid from funds appropriated to the Arkansas State Highway and Transportation Department for salaries.
(c) Any employee of the department retired under this law shall not be eligible for subsequent employment, as an employee, by any state agency whose employees are covered by a state-supported retirement system.
(d) (1) For those department employees who retire pursuant to this section, the amount paid by the system as the cost of the employee's health and basic life insurance shall not exceed the amount of the employer's contribution for the coverage on the date of the employee's retirement and may be reduced at the time the employee qualifies under medicare or medicaid programs.
(2) Any future increase in the cost of this coverage shall be borne by the employee and not by the system from which the employee retired.
(e) No position being vacated as a result of an employee's retiring pursuant to this section shall be filled without the written approval of the Governor or the Chief Fiscal Officer of the State.