ATRS now sets final T-DROP, Post 10 Year T-DROP and Cash Balance Account interest rates using a calendar year lookback to determine if an incentive rate should be added to the interest rate process. This allows members to have information a couple of months earlier as compared to prior years. ATRS had a strong return of over 16% in calendar year 2017. This means that all T-DROP, Post 10 Year T-DROP, and CBAs are subject to an incentive rate enhancement for fiscal year 2019. The strong returns allowed quality incentive rates to be added to the basic rates. As a reminder, 2018 rates that apply on June 30, 2018 are already set as explained in the attachment. The attachment also includes more specifics on the incentive rates that apply on June 30, 2019. The short version is T-DROP interest rate payable on June 30, 2019 is 6%. The Post 10 Year T-DROP interest rate for fiscal year 2019 is 7%. The CBA incentive rate is an extra 1% on all CBA balances on June 30, 2019.
The markets have been in the news for the past week. ATRS has weathered the market turmoil and still has a strong return for the fiscal year that begin July 1, 2017. A note from ATRS about the markets is included in the attachment. The attachment also has a reminder that the executive director continues to schedule school hall meetings to allow school employees to obtain answers to questions and a better insight into ATRS and the benefits it provides.
ATRS has never had a "window" as to when a retirement or T-DROP application could be filed with ATRS. ATRS became aware that some members could, and would file well over a year before an intended retirement date. In order to keep retirement applications from falling through the cracks or having problems with retirement applications being filed early, ATRS has adopted a new rule that will be in effect February 16, 2018, that limits the window filing for retirement or T-DROP applications to four (4) months before the intended retirement date. For a July 1st retirement, the earliest date a retirement application may be filed will be March 1st of that fiscal year. For a January 1st retirement, the earliest the retirement application may be filed is September 1st. As is explained in the attachment, ATRS is working on a process to waive the new filing window requirements for July 1st applications that applications are already filed.
As a reminder, the ATRS website allows members to have direct access to specific member account information. Now, approximately 13,000 members have direct account access to individualized account information. Here is the link to the instructions to sign up: www.artrs.gov/welcome.
You can also sign up to obtain these executive director updates through your private email address. Updates are made throughout the year such as at retirement season and other times when information needs to be shared. Now, over 16,400 people have signed up to receive this executive director update by direct email delivery. It is always a great pleasure for ATRS staff to learn of more ways to provide information to ATRS members, employers, beneficiaries, government officials, and the public. The ATRS Board is committed to providing a system that is member friendly and transparent.
You can also get helpful ATRS information on the ATRS Facebook page under the name of Arkansas Teacher Retirement System. Over 4,200 Facebook users get updates via the ATRS Facebook page. Go to the Facebook page and "like" ATRS to get daily updates. I try to go to the Facebook page every day to post information and answer member questions about ATRS. In addition, if you use Twitter, you can join over 880 others by following events at ATRS and issues of interest on the ATRS Twitter page. Remember that ATRS is here to serve you! If you have questions, email me or call.
Respectfully,
George Hopkins
(501) 682-1820 Office
(501) 318-5998 Cell
georgeh@artrs.gov
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