§ 24-10-610 - Limitations on death and disability annuities. - Arkansas Statutes

24-10-610. Limitations on death and disability annuities.

(a) If a death annuity is payable on behalf of a member who dies in employer service before retirement, or for the portion of a disability annuity payable before a disability retirant's attainment of age fifty-five (55), in no event shall the total amount of the system annuities based on paid service exceed one hundred percent (100%) of the amount of his or her final average pay at the time of death or disability, as the case may be, less the total of the following amounts:

(1) Workers' compensation, if any, on account of the death or disability; and

(2) Benefits, if any, from social security on account of the death or disability.

(b) (1) Beginning with the January 1 which is at least twelve (12) full months after the effective date of an annuity, an amount of final average pay usable for the purposes of this section shall be redetermined each January 1, and the redetermined amount shall be applicable for the ensuing year.

(2) The redetermined amount shall be the amount of final average pay at the time of termination of covered employment increased by any percentage increase in the inflation index for the period from the October immediately preceding the effective date of the benefit to the October immediately preceding the January 1.