Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1304 3
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By: Representative Warren 5
By: Senator J. Dotson 6
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For An Act To Be Entitled 8
AN ACT TO AMEND PROVISIONS REGARDING MEMBER, RETIREE, 9
AND DESIGNATED BENEFICIARY CONTACT INFORMATION UNDER 10
THE ARKANSAS PUBLIC EMPLOYEES' RETIREMENT SYSTEM; TO 11
SET A LIMITATION PERIOD FOR THE CORRECTION OF ERRORS 12
UNDER THE ARKANSAS PUBLIC EMPLOYEES' RETIREMENT 13
SYSTEM AND THE STATE POLICE RETIREMENT SYSTEM; AND 14
FOR OTHER PURPOSES. 15
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17
Subtitle 18
TO SET A LIMITATION PERIOD FOR THE 19
CORRECTION OF ERRORS UNDER THE ARKANSAS 20
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND 21
THE STATE POLICE RETIREMENT SYSTEM. 22
23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code Title 24, Chapter 4, Subchapter 1, is amended 26
to add an additional section to read as follows: 27
24-4-112. Member, retiree, and designated beneficiary contact 28
information — Forfeited amounts. 29
(a)(1) A member, retiree, or the designated beneficiary of a deceased 30
member or retiree shall: 31
(A) File his or her contact information in writing with 32
the Arkansas Public Employees’ Retirement System; and 33
(B) Update any change of contact information on the forms 34
and in the manner requested by the system. 35
(2) As used in this section, "contact information" includes 36 HB1304
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without limitation: 1
(A) The physical or post office address, telephone number, 2
and an email address for the member, retiree, or the designated beneficiary 3
of the deceased member or retiree; and 4
(B) The bank information of a member, retiree, or the 5
designated beneficiary of the deceased member or retiree. 6
(b) The system shall address correspondence to the member, retiree, or 7
designated beneficiary at the last address provided in the contact 8
information filed with the system or, if no contact information has been 9
filed with the system, to an address provided by the covered employer. 10
(c)(1) If the system is unable to make a payment to a member, retiree, 11
or designated beneficiary within five (5) years after payment of a benefit is 12
due to the member, retiree, or designated beneficiary because the system does 13
not receive a response after notifying the member, retiree, or designated 14
beneficiary using the contact information provided to the system, then any 15
amount due the member, retiree, or designated beneficiary shall be forfeited 16
to the trust assets of the system upon the expiration of the five (5) years 17
from the last correspondence sent to the member, retiree, or designated 18
beneficiary. 19
(2) The member, retiree, or designated beneficiary shall be 20
responsible for ensuring the accuracy of his or her contact information for 21
all purposes of the system. 22
(d) If a provision of this section conflicts with a provision of the 23
Unclaimed Property Act, § 18-28-201 et seq., the provision of this section 24
supersedes the conflicting provision of the Unclaimed Property Act, § 18-28-25
201 et seq. 26
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SECTION 2. Arkansas Code § 24 -4-207 is amended to read as follows: 28
24-4-207. Bonds — Payments on vouchers and warrants — Adjustment of 29
erroneous payments Correction of errors and adjustment of annuity amount . 30
(a)(1) The Executive Director of the Arkansas Public Employees' 31
Retirement System and other designated employees shall make bonds to cover 32
their liability for the faithful performance of their duties, from time to 33
time as provided for by law. 34
(2) The cost of the bonds shall be paid from moneys provided for 35
the administrative expenses of the Arkansas Public Employees' Retirement 36 HB1304
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System. 1
(3) The Secretary of the Department of Finance and 2
Administration is authorized and directed to designate such additional 3
personnel within his or her office and to provide for such services as are 4
necessary for the proper operation of the system. 5
(b)(1) The Treasurer of State shall pay annuities and make other 6
disbursements authorized by this act only on vouchers signed by the Executive 7
Director of the Arkansas Public Employees' Retirement System and on warrants 8
issued thereon by the Auditor of State. 9
(2) No voucher or warrant shall be drawn on funds of the system 10
unless it has been previously authorized by a specific or general resolution 11
adopted by the Board of Trustees of the Arkansas Public Employees' Retirement 12
System. 13
(c)(1)(A) Should any a change or error in the records of the system or 14
any an audit of a member's annuity calculations result in any person's 15
receiving more or less than the person would have been entitled to receive 16
had the records or the calculations been correct an incorrect calculation , 17
the board shall correct the error and, as far as is equitable and 18
practicable, shall adjust the payment in accordance with the provisions of 19
this subsection and in such a manner that the actuarial equivalent of the 20
benefit to which the person was correctly entitled shall be paid. 21
(B) However, no monthly adjustment of less than one dollar 22
($1.00) shall be made. 23
(2)(A) The board shall have the right to recover any overpayment 24
that any person may have received from funds of the system , provided if the 25
overpayment is determined and the person is so notified of the error within 26
one (1) year of the date of the last overpayment the limitation period set 27
forth in subdivision (c)(7) of this section . 28
(B) If the An overpayment is determined at a date later 29
than one (1) year after the date of the last overpayment beyond the 30
limitation period, the overpayment shall not be recouped by the board unless 31
the overpayment is a result of an error on the part of a member, retirant, or 32
beneficiary caused or created through intentional nondisclosure, fraud, 33
misrepresentation, or gross negligence by the person receiving the 34
overpayment. 35
(C) In all instances where an overpayment is determined, 36 HB1304
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any From the date of correction of the error, subsequent payments shall be 1
adjusted to the correct amount. 2
(3) If it is determined that any person has received an 3
underpayment from the funds of the system , regardless of the date of the 4
determination, the system shall pay in a lump sum to the person the total of 5
any underpayments made prior to the date of determination, and any subsequent 6
payments annuity amount shall be adjusted to the correct amount. 7
(4)(A) If the annuity amount is decreased upon the 8
reconsideration correction of the error , the matters involved in the decrease 9
shall be system shall set forth in writing the reason for the adjustment and 10
shall be subject to review upon the filing of an appeal thereof by promptly 11
notify the member or annuity recipient. 12
(B) The redetermination adjustment of the annuity amount 13
shall be deemed to be final and binding on all parties unless, within twenty 14
(20) thirty (30) days after the mailing of notice of the redetermination to 15
the member's last known address written notification using the contact 16
information filed with the system , or twenty (20) thirty (30) days after 17
personal delivery of the notice to the member person, an appeal thereof is 18
filed the person files a request with the Executive Director of the Arkansas 19
Public Employees' Retirement System with the executive director for the 20
executive director's determination of the adjustment . 21
(C) The Secretary of the Department of Finance and 22
Administration shall promptly hear all appeals An appeal of annuity 23
determinations or redeterminations and the executive director's determination 24
shall conduct such hearings be heard at an administrative hearing in 25
accordance with procedures set forth by the board and the Arkansas 26
Administrative Procedures Act, § 25 -15-201 et seq. 27
(5) Any action to enforce or create an obligation, duty, or 28
right arising under this chapter, or a request to change a record of the 29
system, including without limitation an attempt to establish service with the 30
system or add service to a member’s record shall be commenced within the 31
limitation period. 32
(6)(A) When the system determines that there is an error in the 33
records, the director shall have the discretion to resolve the matter in a 34
fair manner to all parties affected by the error and may waive or modify the 35
impact of a rule, provision, or law, including without limitation interest 36 HB1304
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and penalties, if a determination provides clear and convincing evidence that 1
the error: 2
(i) Creates an undue hardship to the system, member, 3
person, or employer that is direct and observable; and 4
(ii) Was not a result of intentional nondisclosure, 5
fraud, misrepresentation, or gross negligence. 6
(B) The executive director’s determination may consider: 7
(i) The degree of fault of the system, member, 8
retiree, designated beneficiary, person, or employer; 9
(ii) Any ambiguity in the interpretation of the 10
circumstances, rule, or law; 11
(iii) Whether the cost to the system of correcting 12
the error is outweighed by the benefit afforded to the system, member, 13
retiree, designated beneficiary, person, or employer; 14
(iv) Whether or not an expedited decision serves 15
public interest; and 16
(v) The fundamental fairness of a remedy in a 17
particular situation. 18
(C) The executive director’s determination shall not: 19
(i) Substantially impact the actuarial soundness of 20
the system; or 21
(ii) Conflict with federal law concerning the tax -22
qualified status of the system. 23
(7) As used in this subsection, “limitation period” means a 24
period of time that includes the fiscal year and the four (4) fiscal years 25
immediately following in which the system, member, person, or employer 26
discovers or should have discovered the error in the system’s records. 27
28
SECTION 3. Arkansas Code § 24 -6-205 is amended to read as follows: 29
24-6-205. Correction of errors. 30
(a) Should any change or error in the records of the State Police 31
Retirement System or the Division of Arkansas State Police result in any 32
person's receiving from the system more or less than he or she would have 33
been entitled to receive had the records been correct an incorrect 34
calculation, the Board of Trustees of the State Police Retirement System 35
shall correct the error and, as far as is equitable and practicable, shall 36 HB1304
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adjust the payment in accordance with the provisions of this section and in 1
such manner that the actuarial equivalent of the benefit to which the person 2
was correctly entitled shall be paid. 3
(b)(1) The board shall have the right to recover any overpayment any 4
person may have received from funds of the system if an overpayment is 5
determined and the recipient is notified of the error within the limitation 6
period set out in subsection (g) of this section . 7
(2) An overpayment determined beyond the limitation period shall 8
not be recouped by the board unless the overpayment is a result of an error 9
caused or created through intentional nondisclosure, fraud, 10
misrepresentation, or gross negligence by the person receiving the 11
overpayment. 12
(3) Subsequent payments shall be adjusted to the correct amount 13
from the date of correction of the error. 14
(c) If it is determined that any person has received an underpayment 15
from the funds of the system: 16
(1) The system shall pay in a lump sum to the person the total 17
of the corrected amount; and 18
(2) Any subsequent annuity amount shall be adjusted to the 19
correct amount. 20
(d)(1) If the annuity amount is decreased upon correction of the 21
error, the system shall: 22
(A) Set forth in writing the reason for the adjustment; 23
and 24
(B) Promptly notify the member or annuity recipient. 25
(2) The adjustment of the annuity amount shall be deemed to be 26
final and binding on all parties unless, within thirty (30) days after the 27
mailing of notification to the person’s last address on file with the system, 28
or thirty (30) days after personal delivery of the notice to the person, the 29
person files a request with the Executive Secretary of the State Police 30
Retirement System for the executive secretary’s determination. 31
(3) An appeal of the executive secretary’s determination shall 32
be heard at an administrative hearing in accordance with procedures set forth 33
by the board and the Arkansas Administrative Procedures Act, § 25 -15-201 et 34
seq. 35
(e) Any action to enforce or create an obligation, duty, or right 36 HB1304
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arising under this chapter, or a request to change a record of the system, 1
including without limitation an attempt to establish service with the system 2
or add service to a member’s record, shall be commenced within the limitation 3
period. 4
(f)(1) When the system determines that an error exists in the records, 5
the executive secretary shall have the discretion to resolve the matter in a 6
fair manner to all parties affected by the error and may waive or modify the 7
impact of a rule, provision, or law, including interest and penalties, if a 8
determination provides clear and convincing evidence that: 9
(A) The error creates an undue hardship to the system, 10
member, retiree, designated beneficiary, person, or or the Division of 11
Arkansas State Police that is direct and observable; and 12
(B) The error was not a result of intentional 13
nondisclosure, fraud, misrepresentation, or gross negligence. 14
(2) The executive secretary’s determination may consider: 15
(A) The degree of fault of the system, member, retiree, 16
designated beneficiary, person, or the Division of the Arkansas State Police; 17
(B) An ambiguity in the interpretation of the 18
circumstances, rule, or law; 19
(C) Whether the cost to the system of correcting the error 20
is outweighed by the benefit afforded to the system, member, retiree, 21
designated beneficiary, person, or the Division of the Arkansas State Police; 22
(D) Whether or not an expedited decision serves the public 23
interest; and 24
(E) The fundamental fairness of a remedy in a particular 25
situation. 26
(3) The executive secretary’s determination shall not: 27
(A) Substantially impact the actuarial soundness of the 28
system; or 29
(B) Conflict with federal law concerning the tax -qualified 30
status of the system. 31
(g) As used in this section, “limitation period” means a period of 32
time that includes the fiscal year and the four (4) fiscal years immediately 33
following in which the system, member, retiree, designated beneficiary, 34
person, or the Division of the Arkansas State Police discovers or should have 35
discovered the error in the system’s records. 36 HB1304
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1
SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 2
General Assembly of the State of Arkansas that the provisions of the Arkansas 3
Code related to member, retiree, and designated beneficiary contact 4
information under the Arkansas Public Employees' Retirement System are in 5
need of revision in order to provide clarity and increase efficiency of the 6
system; that a limitation period is needed for the correction of errors of 7
records of members, retirees, and designated beneficiaries under the Arkansas 8
Public Employees' Retirement System and the State Police Retirement System in 9
order to provide clarity and increase efficiency of the systems; and that 10
this act is immediately necessary to achieve the goals of the respective 11
systems to safeguard and maintain an orderly system of benefits. Therefore, 12
an emergency is declared to exist, and this act being immediately necessary 13
for the preservation of the public peace, health, and safety shall become 14
effective on: 15
(1) The date of its approval by the Governor; 16
(2) If the bill is neither approved nor vetoed by the Governor, 17
the expiration of the period of time during which the Governor may veto the 18
bill; or 19
(3) If the bill is vetoed by the Governor and the veto is 20
overridden, the date the last house overrides the veto. 21
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