Legislation Bars Increase in Districts' Share of Pension Costs - KAIT Jonesboro, AR - Region 8 News, weather, sports

Legislation Bars Increase in Districts' Share of Pension Costs

April 16, 2006 - Posted at 11:57 a.m. CST

LITTLE ROCK (AP) _ A new state law approved in the special

session early this month does more than just boost money for school

districts and raise the minimum salary for teachers. It also barred

the board of the Arkansas Teacher Retirement System from increasing

the amount that school districts must pay into the retirement

system to fund teacher pensions.

That apparently would nullify an increase approved by the board

in February, raising the amount that districts must contribute from

14 percent of a teacher's salary to 15 percent. That increase,

which was to take effect on July First, would have been the third

such increase in four years. In 2004, the board raised the

districts' costs from 13 percent to 14 percent, and the bill that

boosted per-student funding and minimum salaries for teachers

included money to help pay that addition cost.

The teacher-retirement system's executive director, David

Malone, says the financial impact of repealing the boost to 15

percent isn't clear yet.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

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