Executive Director Update: Why ATRS Invests Your Money + Tax Savings for College

Ever Wonder Why ATRS Invests Your Retirement Funds?

It’s a question I hear from time to time, and it’s a good one. After all, contributions have already come out of your paycheck, so why is that not enough?

The short answer is this: your contributions alone aren’t enough to fund a lifetime of retirement benefits. That’s why modern pension systems — including ATRS — are built on three key sources of income:

1. What you contribute,
2. What your employer contributes, and
3. The investment returns we earn over time.

Here’s how it works: While you’re working, those contributions are invested to grow the fund. That way, when you retire, there’s enough money to pay you every month — for life.

Let me put it in perspective. Most ATRS members who retire with a straight annuity get back everything they personally contributed after about 3 years. By year 6, they’ve also received their share of the employer’s contributions.

But retirement usually lasts a lot longer than that — often 20 years or more. I’ve even talked to ATRS members who have been retired for more than 40 years. So where does the money come from after year 6? That’s where our investments step in. They fill the gap and keep your benefits flowing.

And here’s the best part: your monthly benefit is guaranteed for life, and it can never go down. That’s the value of ATRS. And that’s why investing is so important.

We don’t chase quick wins. Our investment strategy is built for the long haul — focused on steady growth and protecting the fund’s stability. Every decision made by the ATRS Board of Trustees is grounded in one goal: to protect and preserve your benefits for every year of your retirement, whether your retirement lasts 20, 30, or even 40 years.

 

Medicare Open Enrollment
If you are a retired ATRS member and you receive your healthcare coverage through the state, please know that Open Enrollment ends November 30. If you want to change your ARBenefits health insurance plan, most changes must be made during the Open Enrollment period by November 30. If you are satisfied with your plan or don't want to change, you don't need to do anything.

For assistance with your healthcare options or to make a change, please contact the state’s Employee Benefits Division by calling (877) 815-1017 or emailing ask.ebd@arkansas.gov, or go to their website at https://sas.arkansas.gov/employee-benefits/open-enrollment-resources-retirees/. Although we at ATRS can’t assist with Health Insurance or Medicare issues, we are happy to connect you with the folks at EBD who can.

 

Annual Statements
If you are a vested member who worked and earned service credit with ATRS during the last school year, and you have not yet retired, you should have already received your ATRS Annual Statement in the mail. If not, please email us at info@artrs.gov.

You can access an electronic copy of your Annual Statement by logging into the Member Portal on our website. Once you log in, click on “Member Portal” in the sidebar, then click on “Annual Statement,” and then click the button on the screen that says, “View Annual Statement.”

If you don’t have an account in our Member Portal, you can register for it at this link: https://www.artrs.gov/registration

 

Tax Deductions for College Savings
Are you looking for holiday gift ideas? Consider a gift that lasts far beyond the season: a contribution to a child or grandchild’s future education through the Arkansas Brighter Future 529 Plan.

These accounts offer tax-free savings and investment to pay educational expenses for college, graduate school, vocational and trade school, or apprenticeships. And when you contribute to a 529 plan, you can deduct up to $5,000 (or up to $10,000 for a married couple) from your Arkansas state income taxes.

The tax year is almost over, but you still have time to set up an Arkansas Brighter Future 529 Plan and make a deductible contribution. For more information or to get started, click on this link: https://brighterfuturedirect529.com/home/why-529.html

As ATRS Executive Director, it is my privilege to serve on the Section 529 Plan Review Committee which oversees this wonderful program. And the Plan is administered by State Treasurer John Thurston, who also serves on our ATRS Board of Trustees.

 

Next week, we will be expressing gratitude for all our blessings as we celebrate Thanksgiving. ATRS staff will be in the office and available to take your calls and emails Monday through Wednesday. Our office, as with other state offices, will be closed on Thursday the 27th and Friday the 28th. I hope you and your families have a wonderful and restful holiday week.

 

Mark White
Executive Director, ATRS
MarkW@artrs.gov
Office: (501) 621-8853
Cell: (501) 541-2057

Executive Director Update: 2025 Annual Statements + T-DROP Incentive Interest Rate Increase

ATRS is now mailing 2025 Annual Statements to our Active members and Vested Inactive members. If you are not retired, not in T-DROP, and you worked for a covered employer during the 2024-2025 school year, you should receive an Annual Statement in the mail.

Because we are sending more than 80,000 Statements, we are mailing them in batches over several weeks. You may not receive yours until late October.

We send these Statements each year so that you can check that your wages and service credit for the past school year are correct. It is critically important that you let us know if your Statement does not show your correct service credit and wages.

Every year, we hear from members who want to retire but discover that some of their service was not correctly reported to ATRS. These problems can usually be fixed, but the longer you wait, the more troublesome it can be. When this happens, it can mean delaying your retirement while we work to resolve the issue. And it can sometimes result in a reduced retirement benefit. By reviewing your Statement now, you can be assured that we have your correct wages and service credit.

Please carefully review the information on both sides of the page. If anything looks to be wrong or missing, please call us at (501) 682-1517 or email us at info@artrs.gov

As you review your Statement, there are three specific things you should look for.

First, your Statement will have a section with the heading, “Service Recorded for Fiscal Year Ending 06/30/2025.” This shows the wages and service credit that your employer reported to ATRS for last year. On the back page, you will find up to 30 years of your ATRS credited service, with the most recent service listed first. If you see anything that is wrong or missing, please contact us right away.

Second, the Statement will list the beneficiaries you have designated. As an ATRS member, you can name:

• Beneficiaries for the lump-sum death benefit
• Beneficiaries for your account residue (residue means any member contributions remaining after your death)

For each, you can name both primary and contingent beneficiaries.

If you need to designate or change a beneficiary, you can do so through the member portal on our website. To access and log in to the portal, go to this link: https://www.artrs.gov/login

Or, if you don’t have a portal account yet, you can register for one at this link: https://www.artrs.gov/registration

Once you are in the member portal, look to the left and click on “Member Portal” and then “Member Data” and you will see the button to designate or change a beneficiary.

Third, at the bottom of the first page of your Statement you will see a list of membership milestones. This is a quick indication of the benefits you are eligible for as of June 30, 2025, based on your status and how much credited service you have earned with ATRS.

You should expect to receive your Annual Statement by the end of October. If you have not received your Statement by Monday, November 3, please call us at (501) 682-1517 or email us at info@artrs.gov

And remember, if you are a retired ATRS member, you will not receive an Annual Statement this fall. Instead, you will receive a Form 1099 early next year showing your 2025 benefits.

Increase in T-DROP Incentive Interest Rates
Last month, the ATRS Board of Trustees approved an additional 0.5% incentive interest rate for participants in the Teacher Deferred Retirement Option Program (T-DROP) for this year.

We have been concerned that participation in T-DROP has dropped over the last decade, and we want to see more members take advantage of this wonderful savings opportunity. T-DROP allows retirement-eligible members to begin accruing retirement benefits even as they continue to work in public education. We hope that this additional incentive interest rate will encourage more ATRS members to enter and remain in T-DROP.

For T-DROP participants who are in their first 10 years of working in T-DROP, the additional incentive rate increases their interest rate paid on their balances from 3% to 3.5%. For T-DROP participants who are still working but have been in T-DROP more than 10 years, it increases their interest rate from 4% to 4.5%. And for members who have exited T-DROP and retired and who have funds in a Cash Balance Account (CBA), it provides a 0.5% bonus for the year in addition to the 2.5%-4% variable interest rate that is paid monthly.

If you want to learn more about T-DROP and what it could mean for your retirement savings, please go to this link: https://www.artrs.gov/teacher-deferred-retirement-option-t-drop

As always, if you ever have a question about your retirement options or need information or advice, please reach out to our counselors by calling (501) 682-1517 or e-mailing info@artrs.gov

Mark White
Executive Director, ATRS
MarkW@artrs.gov
Office: (501) 621-8853
Cell: (501) 541-2057