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News
Retiree Increase - No reductions foreseen
All eligible retirees of the Arkansas Public Employees Retirement System (APERS) will receive their three percent (3%) cost of living adjustment (COLA) on July 1, 2010. While the State of Arkansas is eliminating raises to state employees, current retirement law provides for a three percent (3%) COLA to all APERS retirees who have been retired or participated in the Deferred Retirement Option Plan (DROP)for at least twelve months on July 1 of each year.
The APERS portfolio continues to be a well diversified portfolio of different asset classes that are managed by highly skilled professionals with long track records in managing institutional assets. They have experience dealing with volatile markets and will not run from the challenge. In fact, the trust fund has grown substantially from its lows of 2009.
Your APERS defined benefit plan is designed to weather the economic tough periods that our nation experiences from time to time and is therefore able to provide you with the benefits promised to you upon retirement.
posted 01/14/10
Below is a summary of legislation from the 87th General Assembly that impacts on the Arkansas Public Employees Retirement System.
87th General Assembly
Arkansas Public Employees Retirement System (APERS)
April 9, 2009
SB128 (Faris) – Act 295 (March 3, 2009) - 1) Allows members to purchase up to a maximum of five (5) years active duty military service – removes the provision regarding “not receiving federal military service retirement pay”. 2) National guard and armed forces reserve service can be purchased on a one-for-one basis instead of five years for one year.
Effective March 3, 2009.
SB140 (Faris) – Act 657 (March 27, 2009) - For retirement purposes, a member must be terminated from employment for a period of 180 days. However, if a member was participating in the APERS DROP on January 1, 2009 and/or retired between the period of January 2009 and June 2009, this is waived and they may return to employment otherwise covered by APERS no sooner than thirty (30) days.
Effective July 1, 2009.
SB163 (G. Jeffress) – Act 742 (April 1, 2009) - Allows current non-contributory members a six-month window to elect coverage under the new contributory plan (effective July 1, 2005) that will be effective on January 1, 2010.
Effective on signature of Governor.
SB164 (G. Jeffress) – Act 1200 (April 7, 2009) - Provides for an increase in multiplier for service after twenty-eight (28) actual years of service. Non-contributory service will be 2.22% and contributory will be 2.5%.
Effective July 1, 2009.
HB1110 (Kerr) – Act 616 (March 27, 2009) - Amends the definition of compensation under APERS for county and municipal employees and allows a lump sum payment/bonus to be reported.
Effective July 1, 2009.
HB1167 (Cooper) – Act 774 (April 3, 2009) - Includes in APERS membership the tipped food service employees of the Department of Parks and Tourism.
Effective the 91st day after the session ends.
.posted 04/09/09
YOUR APERS BENEFITS ARE SAFE
While the viciousness of the wild gyrations in the financial markets is indeed unprecedented, their actual occurrence is not. Since the founding of this country, these markets have experienced periods of boom and subsequent bust on a fairly regular basis.
Over the last twenty years alone, this retirement system has endured the Savings & Loan debacle where more than half the thrift institutions in the US disappeared and, much like what is being proposed now, taxpayers footed the bailout. In 1998 the hedge fund Long Term Capital Corp. lost tens of billions in just days and again the government stepped forward to calm the markets. Just a few years later, 9/11 occurred and market values of many holdings collapsed as a result.
Through all of these stressful times APERS still managed to grow nearly six-fold in dollar size. As before, our fund value has declined in the face of current events but there is no doubt we will again witness meaningful gains in the future. Through the coming weeks and months it will be import for you to remember your retirement benefits are secure.
The beauty of a Defined Benefit program like APERS is twofold: your accrued benefits are contractually guaranteed, and all the market risk at play in the investment world is assumed by the trust fund, not by you. The frightening stories you may hear or read in the media about those who have lost their retirement security pertain to people covered by 401(k) plans wherein an individual assumes all the risk – and all the losses – that occur in their accounts.
Rather than the individual who must personally choose investments for his or her 401(k) account, the APERS portfolio is a well diversified portfolio of different asset classes that are managed by highly skilled professionals with long track records in managing institutional assets. They have experience dealing with volatile markets and will not run from the challenge.
APERS staff monitors virtually every transaction made for the portfolio, and is actively tracking those holdings that are particularly vulnerable now. APERS trustees are fully informed and will take any action that may be necessary to ensure the protection of your promised benefits.
Gail H. Stone
Executive Director
.posted 9/22/08
SPAM WARNING for our Members
Recently a retirement system in another state reported SPAM emails being sent out to their members requesting personal information. The article reported “The emails may say that your retirement plan benefits have changed, some promise a complimentary estimate in exchange for your personal information. Please beware of such emails”.
Even though there have been NO reported occurrences of this scam in Arkansas, our members need to aware of the following:
APERS, like most retirement systems, WILL NOT send out emails requesting personal information because it is not secure.
If you do receive an email stating it is from APERS and requesting personal information (name, age, social security number, annual income, etc.), please do not reply to it and let APERS know about it as soon as possible. You can contact Marcy Marks at our main office at 501-682-7800 or 800 - 682-7377.
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