§ 24-7-705 - Life annuity.
24-7-705. Life annuity.
(a) (1) (A) After July 1, 1999, upon a member's retirement, he or she shall receive a straight life annuity equal to his or her number of years of credited service for which member contributions were made as provided in 24-7-406 multiplied by not less than two and sixty-five thousandths percent (2.065%) nor more than two and fifteen-hundredths percent (2.15%) of his or her final average salary, or a straight life annuity equal to his or her number of years of credited service rendered after June 30, 1986, for which no member contributions were made as provided in 24-7-406 multiplied by not less than one and three hundred five thousandths percent (1.305%) nor more than one and thirty-nine hundredths percent (1.39%) of his or her final average salary, or a combination of both.
(B) The percentages in subdivision (a)(1)(A) of this section shall be determined in accordance with rules and regulations of the Board of Trustees of the Arkansas Teacher Retirement System as is actuarially appropriate for the system.
(C) Prior to increasing a benefit as provided in this section, the board shall file relevant information concerning the actuarial appropriateness of the action with the Joint Committee on Public Retirement and Social Security Programs.
(2) (A) For a member contributing on only the first seven thousand eight hundred dollars ($7,800) of each annual salary after June 30, 1969, each annual salary used in computing his or her final average salary shall be limited to a maximum of seven thousand eight hundred dollars ($7,800).
(B) The limit shall apply to his or her total credited service.
(3) For a member retiring with benefits to be computed on both contributory and noncontributory service under subsection (a) of this section and free military service first credited after July 1, 1986, under 24-7-602, the amount of military service to be used in the computation of benefits under subsection (a) of this section shall be prorated on the ratio of membership service under each plan to his or her total membership service, notwithstanding the fact that some of the military service shall be credited as noncontributory service before July 1, 1986.
(4) All purchased military service, all out-of-state service credited under 24-7-603, and all overseas service credited under 24-7-604 shall be counted as contributory service, and benefits based on this service shall be computed using the contributory percent of final average salary set forth in this subsection.
(b) (1) The minimum straight life annuity for a member retiring after June 30, 1965, but before July 1, 1986, shall be one hundred fifty dollars ($150) per month, plus the benefits applicable under 24-7-713.
(2) For a member retiring July 1, 1986, or later, the minimum straight life annuity shall be:
(A) (i) One hundred dollars ($100) per month if the member has no noncontributory credited service of the type specified in subdivision (a)(1) of this section, plus the benefits applicable under 24-7-713.
(ii) Effective July 1, 1998, for members with ten (10) or more years of contributory credited service of the type specified in subdivision (a)(1) of this section, the amount shall be one hundred fifty dollars ($150) per month, plus the benefits applicable under 24-7-713;
(B) (i) Sixty-four dollars ($64.00) per month if the member has only credited service of the noncontributory type specified in subdivision (a)(1) of this section, plus the benefits applicable under 24-7-713.
(ii) Effective July 1, 1998, for members with ten (10) or more years of noncontributory credited service of the type specified in subdivision (a)(1) of this section, the amount shall be ninety-four dollars ($94.00) per month, plus the benefits applicable under 24-7-713; or
(C) (i) (a) If the member has a mixture of credited service, the monthly amount shall be prorated between sixty-four dollars ($64.00) and one hundred dollars ($100) according to the relationship between his or her noncontributory credited service and his or her total credited service, plus the benefits applicable under 24-7-713.
(b) Effective July 1, 1998, for members with ten (10) or more years of credited service, the amount shall be prorated between ninety-four dollars ($94.00) and one hundred fifty dollars ($150) per month, according to the relationship between the member's noncontributory credited service and total credited service, plus the benefits applicable under 24-7-713.
(ii) However, if the member has:
(a) At least five (5) years of contributory service, regardless of his or her number of years of noncontributory service, his or her monthly amount shall not be less than one hundred dollars ($100), plus the benefits applicable under 24-7-713; or
(b) At least ten (10) years of contributory service, regardless of his or her number of years of noncontributory service, his or her monthly amount shall not be less than one hundred fifty dollars ($150), plus the benefits applicable under 24-7-713.
(c) As of 1986, the member contributory benefit program and the member noncontributory benefit program were related by requiring the same employer contribution rate. It is intended that this relationship be preserved by future changes, if any, in benefit programs.
(d) Upon a member's retirement, as provided in this act, he or she shall have the right to elect an option provided for in 24-7-706.
(e) A member retiring before July 1, 1987, shall receive an annuity in accordance with provisions of law in force before July 1, 1987.