Alabama Administrative Code Title 880 - ALABAMA SURFACE MINING COMMISSION
I. Arkansas Administrative Code – Agency 088 (Arkansas Teacher Retirement System)
The Arkansas Administrative Code, Agency 088, contains the official rules of the Arkansas Teacher Retirement System (ATRS), which administers pensions and related benefits for Arkansas public school employees and certain higher-education employees.
Below is a structured explanation of its major functional areas.
1. Membership Rules
Agency 088 defines who becomes a member of ATRS, including:
Licensed teachers
Classified school employees (if eligible)
Certain college/university employees
Part-time or substitute teachers who meet hour/service thresholds
It also establishes rules for:
Mandatory vs. optional membership
Beginning/ending membership
Eligibility for re-entry into the system after termination
2. Credited Service
The Code explains how ATRS awards service credit:
Actual service credit: based on number of days or hours worked in a fiscal year
Purchased service credit (at actuarial cost):
Out-of-state teaching
Military service
Sabbatical leave
Forfeited service from past employment
Reciprocal service credit with other Arkansas retirement systems
ATRS rules also detail service-credit caps, deadlines, and documentation requirements.
3. Contributions
ATRS operates as a contributory system with two main types of contributions:
Member Contributions
Mandatory payroll-deducted contributions
Rates set by statute but administered and clarified through Agency 088
Refund rules for members who terminate employment
Employer Contributions
Distributed by the state or local districts
Rules govern reporting, payment timing, and penalties for late contributions
4. Retirement Eligibility and Benefits
Agency 088 rules outline the retirement formulas used by ATRS:
Eligibility
Normal retirement: Defined by a combination of age and credited service (e.g., age 60 with a certain number of years; 28 years of service at any age under prior rules).
Early retirement: Usually with actuarial reduction for younger members.
Benefit Formula
Generally based on:
Final average salary
Multiplier set by statute (often 2.15% or similar)
Total years of credited service
Rules cover:
Cost-of-living adjustments (COLAs)
Benefit option choices (straight life, joint-and-survivor, period certain, etc.)
5. Disability Retirement
Agency 088 prescribes standards and procedures for disability retirement:
Medical certification requirements
Review process by medical committees
Continuing disability verification
Conversion to normal retirement at specific ages
6. Refunds & Termination of Membership
Members who leave covered employment may request refunds of their contributions.
Agency 088 includes:
Mandatory waiting periods
Interest rules
Effect of refund on forfeited service
7. Employer Reporting & Compliance
Districts must comply with rules governing:
Payroll reporting schedules
Accurate reporting of compensation
Penalties for failure to remit contributions
Record-keeping and audit requirements
8. Investments and Governance
ATRS rules provide internal guidelines for:
Board of Trustees operations
Investment policy statements
Conflicts of interest
Procurement requirements for investment managers
While details change over time, the Administrative Code outlines the framework for transparent and fiduciary-compliant operations.
II. Six Relevant Case Laws
Below are six Arkansas appellate decisions that shape how ATRS rules are interpreted.
Three are directly about ATRS, and three govern public retirement systems more broadly, but are frequently applied to ATRS.
A. Cases Directly Involving ATRS
1. Arkansas Teacher Retirement System v. Short, 2011 Ark. 263
Issue: Whether ATRS investment records were exempt from disclosure under the Arkansas Freedom of Information Act (FOIA).
Holding: The Arkansas Supreme Court held that certain investment-related records are confidential when disclosure would disadvantage ATRS in competitive investment negotiations.
Relevance to Agency 088: Supports ATRS rules related to confidentiality, investment oversight, and fiduciary management.
2. Arkansas Teacher Retirement System v. City of West Memphis, 2014 Ark. App. 536
Issue: Dispute involving employer contribution obligations and reporting requirements.
Holding: The court affirmed that ATRS has statutory authority to collect proper employer contributions and apply penalties for non-compliance.
Relevance: Reinforces Agency 088 rules requiring timely and accurate employer reporting.
3. Arkansas Teacher Retirement System v. Pledger, 2009 Ark. 632
Issue: Whether certain investment income was subject to state taxation.
Holding: The court held in favor of ATRS, ruling that the system’s investment income was exempt from taxation under Arkansas law.
Relevance: Supports interpretation of ATRS investment powers and tax-exempt status under governance rules.
B. Cases Governing Arkansas Public Retirement Systems (Applied Consistently to ATRS)
4. Arkansas Public Employees Retirement System v. City of Camden, 315 Ark. 491 (1994)
Issue: Whether vested retirement benefits constitute contractual property rights protected from impairment.
Holding: The court held that retirement benefits become contractual rights once vested.
Relevance to ATRS: ATRS members’ vested benefits cannot be retroactively reduced, influencing interpretation of Agency 088 benefit rules.
5. Pope County v. Arkansas Local Police & Fire Retirement System, 2010 Ark. 136
Issue: Employer liability for payments owed to a public retirement system.
Holding: The court confirmed that retirement systems may enforce statutory contribution requirements.
Relevance to ATRS: Supports ATRS enforcement authority under Agency 088 for employer contributions.
6. Arkansas State Highway Employees Retirement System v. Alcorn, 2012 Ark. 361
Issue: Standards for disability retirement eligibility under public pension laws.
Holding: Courts defer to the retirement system’s medical review findings so long as procedures are followed.
Relevance to ATRS: Reinforces that ATRS disability determinations under Agency 088 receive judicial deference when supported by evidence.
III. Summary
The Arkansas Administrative Code – Agency 088 governs all operations of the Arkansas Teacher Retirement System, including membership, service credit, contributions, retirement benefits, disability provisions, employer obligations, and investment governance.
The six case laws provided illustrate how Arkansas courts interpret pension system powers, member rights, employer duties, confidentiality, taxation, and disability determinations—forming the legal foundation underlying ATRS’s rulemaking and administration.
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