Act 992 of 2003 changed the Teacher Deferred Retirement Option Plan (TDROP) to require employer contributions to the Teacher Retirement System to continue. When a member of the Teacher Retirement System begins participation in TDROP, member contributions to the Arkansas Teacher Retirement System shall cease.
For members whose effective date in TDROP was before September 1, 2003, the employer contribution rate to the Arkansas Teacher Retirement Option Plan shall be at a rate of one percent (1%) for the period from July 1, 2003 Through June 30,2005.
For members whose effective date in TDROP is on or after September 2, 2003, the employer contribution rate on behalf of members in TDROP shall continue at the rate established by the entity having the authority to set the employer contribution rates for the system. The rate currently is 14%.
Except for employer contributions to the Arkansas Teacher Retirement System, the school district shall not make contributions to any tax qualified retirement plan on behalf of any employee participating in TDROP. This prohibition shall not be applicable to the extent necessary to comply with contractual obligations incurred by a school district prior to February 1, 1999.