§ 24-7-401 - Fund contributions -- Fund rates.
24-7-401. Fund contributions -- Fund rates.
(a) (1) The financial objective of the Arkansas Teacher Retirement System is to establish and receive contributions that expressed as percentages of active member payroll will remain approximately level from generation to generation of Arkansas citizens.
(2) Contributions received each year shall be sufficient:
(A) To fully cover the costs of benefit commitments being made to members for their service being rendered in that year; and
(B) 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.
(3) 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 the costs.
(b) An actuarial valuation of the entire system shall be made at least annually by the Board of Trustees of the Arkansas Teacher Retirement System's actuary.
(c) (1) For each fiscal year, the Board of Trustees of the Arkansas Teacher Retirement System shall establish employer contribution rates for the system prospectively and for each fiscal year thereafter.
(2) The employer contribution rates shall be based on the actuary's determination of the rate required to fund the plan in accordance with the objectives stated in subsection (a) of this section.
(3) The employer contribution rates shall be the rates determined by the board based on the annual actuarial valuation.
(4) For the fiscal years ending June 30, 2008, and June 30, 2009, and in each fiscal year thereafter, the employer contribution rate shall not exceed fourteen percent (14%).
(d) The employer contribution rate shall be such that the amortization period for all unfunded liability shall not exceed thirty (30) years. However, under no circumstance shall the required employer contribution rate exceed the maximum percentage rate under subdivision (c)(4) of this section.
(e) (1) The board shall annually notify the participating employers of the employer contribution rate established by the board for the upcoming fiscal year.
(2) Local school districts shall pay the teacher retirement employment contribution for any eligible employee in accordance with rules established by the board.
(3) The Department of Education shall pay from the Public School Fund the teacher retirement employer contributions for eligible employees of participating employers as required by the department's biennial appropriations act and in accordance with rules established by the board.
(4) The annual employer contributions to be paid in each year for all other employees by each participating employer shall be the current state contribution percent multiplied by the total covered salaries of the employer's members in the fiscal year.
(5) The employers' contributions shall be remitted to the system in such manner and form and in such frequency and shall be accompanied by such supporting data as the board shall prescribe from time to time.
(6) Timely payment of the contributions shall be a condition of continuance of participation in the system.