§ 24-5-125 - Eligibility to receive increase in benefits. - Arkansas Statutes

24-5-125. Eligibility to receive increase in benefits.

(a) (1) In order to help offset the cost of health insurance and health care, a member who is receiving benefits from the Arkansas State Highway Employees' Retirement System before, on, or subsequent to July 1, 1999, shall have added to his or her annuity as determined under 24-5-115 no less than the sum of one hundred twenty-five dollars ($125) per month, provided that:

(A) The Board of Trustees of the Arkansas State Highway Employees' Retirement System may elect and is granted the authority to increase that additional monthly sum to all such eligible individuals in an amount determined by the board as necessary to help offset the ever-escalating costs of health insurance and health care;

(B) The additional monthly sum shall not exceed two hundred fifty dollars ($250) per month; and

(C) A member who initiates receiving benefits:

(i) July 1, 2005, through June 30, 2009, has at least five (5) years of service in the system; or

(ii) July 1, 2009, has at least ten (10) years of service in the system.

(2) No benefits enhancement provided by this section shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization.

(b) In its discretion, the board may prorate the benefits provided under this section for any individual retiring after June 30, 1999, but before July 1, 2009, if the individual is also eligible for an additional monthly benefit as a result of credited service under one (1) or more of the other reciprocal systems, as such systems are enumerated in 24-2-401.

(c) A member who initiates receiving benefits on or after July 1, 2009, shall be eligible for a minimum increase in benefits as determined under 24-5-115 under the following schedule:

(1) A member who has accrued ten (10) years but less than fifteen (15) years of service in the system is eligible to receive sixty percent (60%) of the health care offset as provided in 24-5-125(a)(1);

(2) A member who has accrued fifteen (15) years but less than twenty (20) years of service in the system is eligible to receive eighty percent (80%) of the health care offset as provided in 24-5-125(a)(1);

(3) A member who has accrued twenty (20) years or more of service in the system is eligible to receive one hundred percent (100%) of the health care offset as provided in 24-5-125(a)(1);

(4) If the member is eligible for an additional monthly benefit as a result of credited service under one (1) or more of the reciprocal systems, as such systems are enumerated in 24-2-401, the board in its discretion may prorate the benefits provided under this section for all members retiring after June 30, 2009.

(d) Nothing contained in this section shall require the system to pay any portion of the benefits provided for in this section.