Unless you have met the Normal Retirement Age by the effective date of your retirement* you MUST terminate employment with the ATRS Covered Employer and comply with the Termination Separation Period prior to the effective date of your retirement (i.e. a July 1 retiree's last date of employment is June 30). Therefore, as you consider retiring, it is very important that you have also reviewed your financial needs and the requirements of the Termination Separation Period and are prepared to terminate employment in a position covered by the System.
Effective July 1, 2023 (Act 107 of 2023) Normal Retirement Age is defined as the age of 65 with 5 or more years of credited service OR if the member is at least age 60 and the member's age and combined years of credited service total 98 or more. A member must terminate employment unless they meet the Normal Retirement Age. A member that meets the Normal Retirement Age may apply for benefits without termination of employment.
Members that do not meet the Normal Retirement Age cannot return to employment in a position covered by the system within 4 months (Act 183 of 2023) of their effective date of retirement or their retirement will be canceled. This includes substituting, part-time and/or full-time employment with any ATRS covered employer. The effective date of retirement will always be the first of the month. It is not the last day of employment.
* REMEMBER – the effective date of your retirement is not the last day you worked but the first (1st) day of the month you are scheduled to receive your first annuity check.
TERMINATION SEPARATION PERIOD
The Termination Separation period is a very specific legal period as defined in Act 743 of 2009 and is strictly enforced by ATRS. From the effective date of retirement (the effective date of your retirement is NOT when you left your ATRS covered employer but the first (1st) day of the month you receive your first retirement check – in most cases, July 1 is the effective date of retirement), you must stay separated from ATRS employment until the separation period applicable to your situation has concluded.
ATRS covered employers include Arkansas public schools (including charter schools), educationally related state agencies, colleges, universities, and post-secondary institutions.
Termination Separation means more than not working. You can sign NO CONTRACTS and can make NO DEALS until the Termination Separation period is over. You CANNOT APPLY for a job with an ATRS covered employer during the Termination Separation period. You can have NO CONNECTION to the district by AGREEMENT OR UNDERSTANDING for future employment. You CANNOT WORK INDIRECTLY at an ATRS covered employer through an INDEPENDENT CONTRACTOR, LLC, PARTNERSHIP, CORPORATION, or other LEGAL ENTITY where you have substantial control over the employer-employee relationship. You CANNOT SUBSTITUTE – NOT ONE HOUR, NOT ONE DAY!
ATRS is very serious about enforcing the Termination Separation requirements. As fiduciaries for the ATRS members, ATRS must protect the assets of ATRS by enforcing all laws equitably. Below, you will find details regarding the Termination Separation period. If you have any questions, you are STRONGLY ENCOURAGED to obtain WRITTEN CLEARANCE from ATRS before a mistake is made.
FAILURE TO PROPERLY TERMINATE AND COMPLY WITH THE TERMINATION SEPARATION PERIOD IS OFTEN FINANCIALLY HARSH ON A MEMBER SINCE THE MEMBER MUST SUBMIT A NEW RETIREMENT APPLICATION AND REPAY ALL BENEFITS RECEIVED FROM THE VOIDED RETIREMENT.
Important AGAIN, YOU ARE STRONGLY ENCOURAGED TO OBTAIN WRITTEN CLEARANCE FROM ATRS BEFORE RETURNING TO WORK !