| 3 | 2 | | *LJH040* 01/23/2025 9:45:28 AM LJH040 |
|---|
| 4 | 3 | | State of Arkansas 1 |
|---|
| 5 | 4 | | 95th General Assembly A Bill 2 |
|---|
| 6 | 5 | | Regular Session, 2025 HOUSE BILL 1211 3 |
|---|
| 7 | 6 | | 4 |
|---|
| 8 | 7 | | By: Representative Warren 5 |
|---|
| 9 | 8 | | By: Senator Gilmore 6 |
|---|
| 10 | 9 | | 7 |
|---|
| 11 | 10 | | For An Act To Be Entitled 8 |
|---|
| 12 | 11 | | AN ACT TO MAKE TECHNICAL CORRECTIONS AND CLARIFY 9 |
|---|
| 13 | 12 | | LANGUAGE FOR THE PROPER ADMINISTRATION OF BENEFITS 10 |
|---|
| 14 | 13 | | UNDER THE ARKANSAS PUBLIC EMPLOYEES’ RETIREMENT 11 |
|---|
| 15 | 14 | | SYSTEM; AND FOR OTHER PURPOSES. 12 |
|---|
| 16 | 15 | | 13 |
|---|
| 17 | 16 | | 14 |
|---|
| 18 | 17 | | Subtitle 15 |
|---|
| 19 | 18 | | TO MAKE TECHNICAL CORRECTIONS AND 16 |
|---|
| 20 | 19 | | CLARIFY LANGUAGE FOR THE PROPER 17 |
|---|
| 21 | 20 | | ADMINISTRATION OF BENEFITS UNDER THE 18 |
|---|
| 22 | 21 | | ARKANSAS PUBLIC EMPLOYEES’ RETIREMENT 19 |
|---|
| 23 | 22 | | SYSTEM. 20 |
|---|
| 24 | 23 | | 21 |
|---|
| 25 | 24 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22 |
|---|
| 26 | 25 | | 23 |
|---|
| 27 | 26 | | SECTION 1. Arkansas Code § 24-4-101(12)(B), concerning the meaning of 24 |
|---|
| 28 | 27 | | recurring remuneration in the definition of "compensation" under the Arkansas 25 |
|---|
| 29 | 28 | | Public Employees' Retirement System, is amended to read as follows: 26 |
|---|
| 30 | 29 | | (B) The following are recurring remuneration for personal 27 |
|---|
| 31 | 30 | | services for the purposes of determining retirement benefits: 28 |
|---|
| 32 | 31 | | (i) Career service recognition payments paid to a 29 |
|---|
| 33 | 32 | | member under § 21-5-106; 30 |
|---|
| 34 | 33 | | (ii) Payments made to a member under § 21 -5-1101, 31 |
|---|
| 35 | 34 | | including without limitation a lump -sum payment; 32 |
|---|
| 36 | 35 | | (iii)(a) Except as provided in subdivision 33 |
|---|
| 37 | 36 | | (12)(B)(iii)(b) of this section, payments made to a member under § 14-14-34 |
|---|
| 38 | 37 | | 1206(a), including without limitation a bonus or lump -sum payment. 35 |
|---|
| 39 | 38 | | (b) The maximum amount of the bonus or lump -36 HB1211 |
|---|
| 40 | 39 | | |
|---|
| 41 | 40 | | 2 01/23/2025 9:45:28 AM LJH040 |
|---|
| 42 | 41 | | sum payment that will be considered to be compensation during the last year 1 |
|---|
| 43 | 42 | | of a member's employment is the lesser of five percent (5%) of the current 2 |
|---|
| 44 | 43 | | year's salary or the amount of the bonus or lump -sum payment that was 3 |
|---|
| 45 | 44 | | received by the member during the previous year of employment; 4 |
|---|
| 46 | 45 | | (iv)(a) Except as provided in subdivision 5 |
|---|
| 47 | 46 | | (12)(B)(iv)(b) of this section, a bonus or lump -sum payment made to a 6 |
|---|
| 48 | 47 | | municipal employee as provided in the municipality's annual budget under § 7 |
|---|
| 49 | 48 | | 14-42-308. 8 |
|---|
| 50 | 49 | | (b) The maximum amount of the bonus or lump -9 |
|---|
| 51 | 50 | | sum payment that will be considered to be compensation during the member's 10 |
|---|
| 52 | 51 | | last year of employment is the lesser of five percent (5%) of the current 11 |
|---|
| 53 | 52 | | year's salary or the amount of the bonus or lump -sum payment that was 12 |
|---|
| 54 | 53 | | received by the member during the previous year of employment; and 13 |
|---|
| 55 | 54 | | (v) Lump-sum payments made to a member under § 21 -5-14 |
|---|
| 56 | 55 | | 211 and §21-5-219 [repealed]; 15 |
|---|
| 57 | 56 | | (vi) Lump-sum payments made to a member under § 21 -16 |
|---|
| 58 | 57 | | 5-227; and 17 |
|---|
| 59 | 58 | | (vii) Bonus payments made to a member under § 21 -5-18 |
|---|
| 60 | 59 | | 228. 19 |
|---|
| 61 | 60 | | 20 |
|---|
| 62 | 61 | | SECTION 2. Arkansas Code § 24 -4-110 is repealed. 21 |
|---|
| 63 | 62 | | 24-4-110. Failure to terminate — Commencement of annuity payments — 22 |
|---|
| 64 | 63 | | Election to retire. 23 |
|---|
| 65 | 64 | | A retirant shall not begin receiving annuity payments until all 24 |
|---|
| 66 | 65 | | requirements for terminating qualified employment are satisfied. 25 |
|---|
| 67 | 66 | | 26 |
|---|
| 68 | 67 | | SECTION 3. Arkansas Code § 24 -4-111 is repealed. 27 |
|---|
| 69 | 68 | | 24-4-111. Failure to meet termination requirements — Member's 28 |
|---|
| 70 | 69 | | retirement election. 29 |
|---|
| 71 | 70 | | The failure to meet termination requirements does not revoke a member's 30 |
|---|
| 72 | 71 | | retirement election. 31 |
|---|
| 73 | 72 | | 32 |
|---|
| 74 | 73 | | SECTION 4. Arkansas Code § 24 -4-520(d), regarding forfeiture of 33 |
|---|
| 75 | 74 | | benefits until termination requirements under the Arkansas Public Employees' 34 |
|---|
| 76 | 75 | | Retirement System are met, is amended to read as follows: 35 |
|---|
| 77 | 76 | | (d)(1) Persons failing A member or former member in the system who 36 HB1211 |
|---|
| 78 | 77 | | |
|---|
| 79 | 78 | | 3 01/23/2025 9:45:28 AM LJH040 |
|---|
| 80 | 79 | | fails to meet termination requirements shall forfeit their benefits until 1 |
|---|
| 81 | 80 | | requirements are met. 2 |
|---|
| 82 | 81 | | (2) A retirant shall not begin receiving annuity payments until 3 |
|---|
| 83 | 82 | | all requirements for terminating qualified employment are satisfied. 4 |
|---|
| 84 | 83 | | (3) The failure to meet termination requirements does not revoke 5 |
|---|
| 85 | 84 | | a member's retirement election. 6 |
|---|
| 86 | 85 | | 7 |
|---|
| 87 | 86 | | 8 |
|---|