The Cash Balance Account (CBA) is designed for members of the Arkansas Teacher Retirement System (ATRS) who are retiring out of T-DROP and want all or part of their T-DROP account balance in an account with highly competitive interest rates with no risk to principal.
The CBA pays very competitive monthly compounded interest rates beginning the month after the account is established. Interest rates on CBA accounts start at 2.5% and grow to 4% over time and are not subject to reduction. In addition, during years of strong returns the ATRS Board of Trustees may grant additional incentive rates to CBA participants.
The ATRS Board of Trustees may adopt, by Resolution, an interest rate increase based upon current interest rates and financial market conditions. Once a member rolls all or a portion of their T-DROP balance into the CBA, the interest rates in effect at that time can never be lowered but may be increased.
Currently, your CBA will receive interest according to the following participation schedule:
- For the first year: 2.50%
- For the second year: 2.75%
- For the third year: 3.00%
- For the fourth year: 3.25%
- For the fifth year: 3.50%
- For the sixth year: 4.00%
PLEASE NOTE: Any withdrawals throughout the fiscal year will impact your accrued interest.
CBA Withdrawals
CBA participants may request a one-time or recurring monthly distribution from the CBA at any time. A combined total of six (6) distributions may be requested per fiscal quarter. CBA funds are immediately available for withdrawal upon the account funding. The member's CBA principal and interest are tax-deferred until the member makes a withdrawal.
Please see Cash Balance Account Distribution Request Forms to make a withdrawal.
For more information, see: CBA FAQs
Contact ATRS at (501) 682-1517 or info@artrs.gov
for further information regarding Cash Balance Accounts (CBA).