Efforts to collect money from some school system retirees who returned to work will resume by the Arkansas Teacher Retirement System.
Arkansas Retirement System Director George Hopkins had stopped the effort, saying he questioned whether the money could be legally collected. An attorney general's opinion said the law is unclear, so Hopkins said he will resume efforts to collect from 11 retirees and let the courts decide the matter.
The system sent out notices in August to 11 retired teachers, administrators or support staff members who it determined should have had money withheld from their pensions once they went back to work after retiring.
A month later, after receiving complaints from retirees' attorneys and legislators, Retirement System Director George Hopkins halted the effort, saying he had questions about whether the system was legally entitled to collect the money.
Hopkins sought advice from the attorney generals office. Last month, Attorney General Dustin McDaniel's chief deputy told Hopkins that the law is unclear, in part because not many cases on the issue have been decided by the Arkansas Supreme Court or Court of Appeals.
Hopkins said he plans to send notices to the retirees this week informing them that their cases have been reactivated.
"I decided the only way I can realistically handle this is just to move forward and hear each one," Hopkins said.
Until July 1, retirees younger than 65 who returned to work for an employer that participates in the retirement system were required to have $1 withheld from their pensions for every $2 they earned above a limit set by state law. Last school year, the limit was $27,120.
Act 743 of 2009 eliminated the income limit, allowing retirees to collect full salaries and pensions at the same time. But the law also requires school districts, colleges and other employers that have retirees on the payrolls to contribute 14 percent of the retirees pay to the system, the same amount the employers contribute for other employees, even though the retirees cannot earn credit toward a second pension.
The 11 retirees who received notices are under scrutiny for their work at the University of Arkansas at Little Rock, Henderson State University, the University of Central Arkansas, Arkansas State University-Jonesboro, Arkansas State University-Mountain Home, Phillips Community College, the Gurdon School District and an educational cooperative.
