§ 24-7-702 - Early voluntary retirement.
24-7-702. Early voluntary retirement.
(a) (1) Except as provided under subdivision (a)(2) of this section, an active or inactive member who has twenty-five (25) or more years of credited service but has not attained sixty (60) years of age and is not eligible for retirement under 24-7-701 may voluntarily retire early upon written application filed with the Board of Trustees of the Arkansas Teacher Retirement System.
(2) (A) A member shall meet the termination of covered employment requirements under 24-7-502 to be eligible for retirement except if the member has attained normal retirement age.
(B) A member who fails to meet the termination of covered employment requirements under this subsection shall have his or her retirement benefits cancelled and forfeits any retirement benefits until the termination requirements are met.
(C) (i) A member who fails to meet the termination requirements of this section and has received retirement benefits from the system shall repay the benefits to the system before becoming eligible again for voluntary retirement.
(ii) The system may adjust and collect any benefits that have been overpaid to a member under 24-7-205.
(D) A member who fails to meet the termination requirements of this section upon employment by a covered employer shall return to active member status under 24-7-502.
(b) (1) Upon an active or inactive member's retirement as provided in this section, the member shall receive, in lieu of any other system benefit, an early annuity that shall be a certain percent of an annuity provided for in 24-7-705.
(2) The percent shall be one hundred percent (100%) reduced by five-twelfths percent (5/12%) multiplied by the number of months by which the time of early retirement precedes the earlier of either completion of twenty-eight (28) years of credited service or attainment of sixty (60) years of age.
(3) (A) Effective July 1, 1997, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty-five (35) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been thirty (30) years on the effective date of their retirement.
(B) The annuities of those members who chose early retirement from July 1, 1995, through June 30, 1999, who received an early annuity as provided in 24-7-702 that was in effect at the time of their retirement, shall be adjusted effective July 1, 1999, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section.
(C) Effective July 1, 2001, the annuities of those members who chose early retirement when the years of service required for an unreduced annuity was thirty (30) or more years shall be adjusted to reflect the amount for which they would have been entitled had the number of years to retire with an unreduced annuity been twenty-eight (28) years on the effective date of their retirement, and the annuities of those members shall be adjusted effective July 1, 2001, to reflect a percent of the annuity as provided in subdivision (b)(2) of this section, which was in effect July 1, 1999.
(4) The adjustments described in subdivision (b)(3) of this section shall not be retroactive to the effective date of the member's retirement.
(c) For an active member, the annuity shall begin the first day of the calendar month next following the latest of:
(1) One (1) month after the date the written application is filed with the board;
(2) The member's termination of active membership; or
(3) The member's completion of the required credited service.
(d) For an inactive member, the annuity shall begin the first day of the calendar month after the date his or her written application is received by the board.
(e) If a member is retiring with an effective date other than July 1 or the first day of a calendar quarter within the fiscal year, the following limitations shall apply:
(1) No salary for service within the fiscal year shall be considered in determining final average salary;
(2) Credited service for service within the fiscal year shall not exceed one-quarter (1/4) year for each full calendar quarter elapsed since the beginning of the fiscal year; and
(3) Service credit to be used in the computation of benefits shall be computed only on the full calendar quarter completed and shall not include service credit for a partial calendar quarter worked.
(f) (1) If a member has signed an employment contract for a fiscal school year and been paid in full for that fiscal year, in no event shall the annuity begin earlier than the July 1 next following that fiscal school year.
(2) If a member has signed an employment contract for a fiscal school year and that contract is not completed, the member shall receive credit for service within the current fiscal year as provided in subsection (e) of this section.