Committee approves voluntary option for licensed childcare workers to join teacher retirement system

The joint Public Retirement & Social Security Programs committee passed Senate Bill 148, which would permit licensed early childhood providers that accept state or federal childcare funds to voluntarily participate in the Arkansas Teacher Retirement System.

Senator English presented the bill as a voluntary, optional program for both employers and workers intended to increase recruitment and retention of childcare workers by giving them access to ATRS benefits. Mark White of the Arkansas Teacher Retirement System said employer and employee contribution rates would be the same as existing ATRS participants.

“There’s an employer contribution and an employee contribution. And under this bill, it would still be the same way that the employer would pay their contribution. The employee would pay their contribution,” Mark White testified.

Advocates urged the committee to support the bill. Angela Duran, executive director of Excel by 8, said the measure is “one small step” to help early childhood educators offer competitive wages and benefits and to address worker shortages.

Committee members asked about scope and fiscal impact: speakers clarified that eligibility would be limited to licensed providers that accept state or federal early childhood funds and that current IRS and statute constraints limit opening ATRS to arbitrary private employers. Jody Carrero, the committee actuary, said actuaries concluded that bringing members in on the same terms and contribution rates would be financially neutral or positive for the retirement system.

The bill received no public opposition during the committee hearing and passed on a voice vote.

Ending: Sponsors said participation would remain optional for employers and workers; the bill does not require employers to join ATRS and does not change existing contribution rates.