February 7, 2018 - Executive Director Update: Quality 2019 T-DROP Interest Rates, New Application Window for 2018, and a Market Update

ATRS now sets final T-DROP, Post 10 Year T-DROP and Cash Balance Account interest rates using a calendar year lookback to determine if an incentive rate should be added to the interest rate process. This allows members to have information a couple of months earlier as compared to prior years. ATRS had a strong return of over 16% in calendar year 2017. This means that all T-DROP, Post 10 Year T-DROP, and CBAs are subject to an incentive rate enhancement for fiscal year 2019. The strong returns allowed quality incentive rates to be added to the basic rates. As a reminder, 2018 rates that apply on June 30, 2018 are already set as explained in the attachment. The attachment also includes more specifics on the incentive rates that apply on June 30, 2019. The short version is T-DROP interest rate payable on June 30, 2019 is 6%. The Post 10 Year T-DROP interest rate for fiscal year 2019 is 7%. The CBA incentive rate is an extra 1% on all CBA balances on June 30, 2019.

The markets have been in the news for the past week. ATRS has weathered the market turmoil and still has a strong return for the fiscal year that begin July 1, 2017. A note from ATRS about the markets is included in the attachment. The attachment also has a reminder that the executive director continues to schedule school hall meetings to allow school employees to obtain answers to questions and a better insight into ATRS and the benefits it provides.

ATRS has never had a "window" as to when a retirement or T-DROP application could be filed with ATRS. ATRS became aware that some members could, and would file well over a year before an intended retirement date. In order to keep retirement applications from falling through the cracks or having problems with retirement applications being filed early, ATRS has adopted a new rule that will be in effect February 16, 2018, that limits the window filing for retirement or T-DROP applications to four (4) months before the intended retirement date. For a July 1^st retirement, the earliest date a retirement application may be filed will be March 1^st of that fiscal year. For a January 1^st retirement, the earliest the retirement application may be filed is September 1^st. As is explained in the attachment, ATRS is working on a process to waive the new filing window requirements for July 1^st applications that applications are already filed.

As a reminder, the ATRS website allows members to have direct access to specific member account information. Now, approximately 13,000 members have direct account access to individualized account information. Here is the link to the instructions to sign up: www.artrs.gov/welcome.

You can also sign up to obtain these executive director updates through your private email address. Updates are made throughout the year such as at retirement season and other times when information needs to be shared. Now, over 16,400 people have signed up to receive this executive director update by direct email delivery. It is always a great pleasure for ATRS staff to learn of more ways to provide information to ATRS members, employers, beneficiaries, government officials, and the public. The ATRS Board is committed to providing a system that is member friendly and transparent.

You can also get helpful ATRS information on the ATRS Facebook page under the name of Arkansas Teacher Retirement System.  Over 4,200 Facebook users get updates via the ATRS Facebook page.  Go to the Facebook page and "like" ATRS to get daily updates.  I try to go to the Facebook page every day to post information and answer member questions about ATRS.  In addition, if you use Twitter, you can join over 880 others by following events at ATRS and issues of interest on the ATRS Twitter page.  Remember that ATRS is here to serve you!  If you have questions, email me or call.

Respectfully,

George Hopkins

(501) 682-1820 Office
(501) 318-5998 Cell
georgeh@artrs.gov

List of Attachments:

1. February 7, 2018 Update

 

Public Notice: Board of Trustees Election 2018

 Arkansas Teacher Retirement System (ATRS)

Board of Trustees Election 2018

Election of the following two (2) positions on the ATRS Board of Trustees is scheduled in March, 2018:  Position #5 (Certified Member – Administrator Trustee) and Position # 11 (Retirant Trustee).

Positions #5 Candidates must meet the following criteria:

• Must be an active member of ATRS (includes T-DROP participants);
• Must have five (5) years of actual service in ATRS; and
• Must be employed as a school administrator (superintendent, assistant superintendent, principal, vice principal, president, chancellor, or director of a state institution of higher education, community/technical collect, or vocational center/cooperative),

Position #5 Eligible voters shall be active ATRS members (includes T-DROP participants) employed as school administrators (superintendent, assistant superintendent, principal, vice principal, president, chancellor, or director of a state institution of higher education, community/technical collect, or vocational center/cooperative) or employed by an ATRS covered employer in a position Grade 24 or above.

 

Position #11 Candidates must meet the following criteria:

1. Must be a retiree member receiving an annuity paid by ATRS; and
2. Must be a resident of the State of Arkansas

Position #11 Eligible voters shall be all ATRS retirees receiving an ATRS annuity.

 

Nomination for election shall be upon receipt of a petition signed by at least 25 voters who are eligible to vote for the trustee position for which the member is seeking nomination.  The petitions must include the last four digits of the Social Security number of each signatory for verification of the member's eligibility to vote for the position.  Nominating petitions and a candidate information form must be filed with the Executive Director of the Teacher Retirement System by Wednesday, January 10, 2018.  Petitions may be requested by calling Tammy Porter at 501-682-6149 or toll free 1-800-666-2877.

 

The Board of Trustees shall employ an independent contractor who will mail ballots to eligible voters' addresses or record and will also collect, count, and certify election results.

• Deadline for nomination: Wednesday, January 10, 2018
• Ballots mailed: Thursday, March, 15, 2018
• Deadline for ballots to be returned: Monday, April 16, 2018
• Results certified: Friday, April 20, 2018

If no candidate receives at least 50% of votes cast by eligible voters on the first ballot, a run-off election will be held between the two candidates receiving the highest number of votes for the position.  The Schedule for the run-off election will be as follows:

• Run-off ballots mailed: Tuesday, May 1, 2018
• Deadline for ballots to be returned: Friday, June 1, 2018
• Results certified: Tuesday, June 5, 2018

If any of the above fixed dates fall on a weekend or holiday, that date is moved to the next regular work day.

If a candidate receives at least 50% of the votes cast on the first ballot, they will be declared the winner of the election and will assume office on July 1, 2018.  If a run-off election is necessary, the candidate receiving at least 50% of the votes cast in the runoff will be declared the winner of the election and will assume office on July 1, 2018.

The term of office of each elected trustee is six (6) years.  Each trustee shall continue to serve as trustee until his or her successor is elected.