TO AMEND THE LAW CONCERNING PERMISSIVE SERVICE CREDIT FOR GAP YEAR SERVICE UNDER THE ARKANSAS TEACHER RETIREMENT SYSTEM; AND TO DECLARE AN EMERGENCY.

Arkansas teachers can buy quarterly retirement credit

Beginning July 1, 2025, eligible Arkansas Teacher Retirement System members can buy retirement credit for gaps measured in fiscal-year quarters. Each qualifying quarter allows a quarter-year of credit, with a five-year total limit. During the gap, members must be inactive and either unemployed or not providing qualifying service. They cannot qualify for free credit for the same period. Members must leave classroom teaching immediately before each gap or the first of consecutive gaps, then return to classroom teaching. After returning, they must earn at least half a year of service credit. The law removes the former requirement for five years of actual service. Members must pay the system’s calculated value of the benefits for each quarter; credit counts only after full payment. Purchases are not allowed after retirement. Refunds are available if members stop being active before credit is established, or the credit is not used to establish retirement.