Arkansas Code § 24-7-733 - Limitation on Benefits

(a) (1) Notwithstanding the provisions of this subchapter, benefits paid under the Arkansas Teacher Retirement System shall not exceed the limitations of the Internal Revenue Code, 26 U.S.C. 415, that are applicable to governmental retirement plans, including without limitation the dollar limitations in of the Internal Revenue Code, 26 U.S.C. 415(b)(1)(A).

(2) The annual benefits, as may be increased in subsequent years, that are paid to retirants by the system shall not violate the limitations under the Internal Revenue Code, 26 U.S.C. 415(b), applicable to the annuity effective date under the Internal Revenue Code, 26 U.S.C. 415(d), and benefits shall be paid in a manner that protects the tax-qualified status of the system.

(b) For purposes of determining compliance with the Internal Revenue Code, 26 U.S.C. 415, "compensation" is defined as set forth in United States Treasury Regulation, 26 C.F.R. ยง 1.415-2(d)(2), as it existed on January 1, 2009, and includes any amount that is not includible in the gross income of the member under the Internal Revenue Code, 26 U.S.C. 132(f)(4), as it existed on January 1, 2011.

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Last modified: November 15, 2016