§ 24-7-718 - Minimum financial conditions for benefit increases.
24-7-718. Minimum financial conditions for benefit increases.
(a) For an increase in benefit formulas to be effective, the regular annual actuarial valuation for the calendar year immediately preceding the effective date of the increase shall be based upon an investment rate assumption of no more than eight percent (8%) and shall indicate that up to and including a fourteen percent (14%) of pay employer contribution rate is sufficient to amortize all unfunded actuarial accrued liabilities for members over a period of thirty (30) years or less unless the required contribution rate would exceed fourteen percent (14%).
(b) For any increase to be effective on a scheduled date, all increases scheduled for that date must collectively meet the minimum financial conditions.
(c) (1) On any scheduled date that the increases do not collectively meet the minimum financial conditions, the Board of Trustees of the Arkansas Teacher Retirement System shall have the authority to delay the increase until the minimum financial conditions are met.
(2) Such delayed increase shall only be given on a July 1 and shall be the increase set out in 24-7-705(a)(5) [repealed], 24-7-705(a)(6) [repealed], and 24-7-713(b)(1).