Bill > HB1347

This bill allows members of the Arkansas Teacher Retirement System (ATRS) to direct their annuity or benefit payments to a special needs trust for a designated beneficiary. Specifically, if a member has a beneficiary with special needs, they can choose to have their retirement payments sent directly to a special needs trust established under federal law (specifically 42 U.S.C. § 1396p(d)(4)(A) or (C)). The bill applies to various types of retirement benefits, including those from different sections of the existing retirement system statutes. If no special needs trust exists or can be identified, the system will pay the annuity or benefit directly to the person. The bill importantly clarifies that ATRS is not required to establish or verify the trust, but the Board of Trustees may create rules to implement this new provision. The legislation becomes effective on July 1, 2026, and provides flexibility for families with special needs dependents to protect their loved ones' financial benefits while potentially maintaining eligibility for other government assistance programs.

Labor and Employment

https://arkleg.state.ar.us/Bills/Detail?id=hb1347&ddBienniumSession=2025%2F2025R