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Arkansas House Bill HB1304

Arkansas 2025 Regular Session

Arkansas House Bill HB1304 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
22 *LJH043* 01/29/2025 11:16:42 AM LJH043
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 HOUSE BILL 1304 3
66 4
77 By: Representative Warren 5
88 By: Senator J. Dotson 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO AMEND PROVISIONS REGARDING MEMBER, RETIREE, 9
1212 AND DESIGNATED BENEFICIARY CONTACT INFORMATION UNDER 10
1313 THE ARKANSAS PUBLIC EMPLOYEES' RETIREMENT SYSTEM; TO 11
1414 SET A LIMITATION PERIOD FOR THE CORRECTION OF ERRORS 12
1515 UNDER THE ARKANSAS PUBLIC EMPLOYEES' RETIREMENT 13
1616 SYSTEM AND THE STATE POLICE RETIREMENT SYSTEM; AND 14
1717 FOR OTHER PURPOSES. 15
1818 16
1919 17
2020 Subtitle 18
2121 TO SET A LIMITATION PERIOD FOR THE 19
2222 CORRECTION OF ERRORS UNDER THE ARKANSAS 20
2323 PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND 21
2424 THE STATE POLICE RETIREMENT SYSTEM. 22
2525 23
2626 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2727 25
2828 SECTION 1. Arkansas Code Title 24, Chapter 4, Subchapter 1, is amended 26
2929 to add an additional section to read as follows: 27
3030 24-4-112. Member, retiree, and designated beneficiary contact 28
3131 information — Forfeited amounts. 29
3232 (a)(1) A member, retiree, or the designated beneficiary of a deceased 30
3333 member or retiree shall: 31
3434 (A) File his or her contact information in writing with 32
3535 the Arkansas Public Employees’ Retirement System; and 33
3636 (B) Update any change of contact information on the forms 34
3737 and in the manner requested by the system. 35
3838 (2) As used in this section, "contact information" includes 36 HB1304
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4141 without limitation: 1
4242 (A) The physical or post office address, telephone number, 2
4343 and an email address for the member, retiree, or the designated beneficiary 3
4444 of the deceased member or retiree; and 4
4545 (B) The bank information of a member, retiree, or the 5
4646 designated beneficiary of the deceased member or retiree. 6
4747 (b) The system shall address correspondence to the member, retiree, or 7
4848 designated beneficiary at the last address provided in the contact 8
4949 information filed with the system or, if no contact information has been 9
5050 filed with the system, to an address provided by the covered employer. 10
5151 (c)(1) If the system is unable to make a payment to a member, retiree, 11
5252 or designated beneficiary within five (5) years after payment of a benefit is 12
5353 due to the member, retiree, or designated beneficiary because the system does 13
5454 not receive a response after notifying the member, retiree, or designated 14
5555 beneficiary using the contact information provided to the system, then any 15
5656 amount due the member, retiree, or designated beneficiary shall be forfeited 16
5757 to the trust assets of the system upon the expiration of the five (5) years 17
5858 from the last correspondence sent to the member, retiree, or designated 18
5959 beneficiary. 19
6060 (2) The member, retiree, or designated beneficiary shall be 20
6161 responsible for ensuring the accuracy of his or her contact information for 21
6262 all purposes of the system. 22
6363 (d) If a provision of this section conflicts with a provision of the 23
6464 Unclaimed Property Act, § 18-28-201 et seq., the provision of this section 24
6565 supersedes the conflicting provision of the Unclaimed Property Act, § 18-28-25
6666 201 et seq. 26
6767 27
6868 SECTION 2. Arkansas Code § 24 -4-207 is amended to read as follows: 28
6969 24-4-207. Bonds — Payments on vouchers and warrants — Adjustment of 29
7070 erroneous payments Correction of errors and adjustment of annuity amount . 30
7171 (a)(1) The Executive Director of the Arkansas Public Employees' 31
7272 Retirement System and other designated employees shall make bonds to cover 32
7373 their liability for the faithful performance of their duties, from time to 33
7474 time as provided for by law. 34
7575 (2) The cost of the bonds shall be paid from moneys provided for 35
7676 the administrative expenses of the Arkansas Public Employees' Retirement 36 HB1304
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7979 System. 1
8080 (3) The Secretary of the Department of Finance and 2
8181 Administration is authorized and directed to designate such additional 3
8282 personnel within his or her office and to provide for such services as are 4
8383 necessary for the proper operation of the system. 5
8484 (b)(1) The Treasurer of State shall pay annuities and make other 6
8585 disbursements authorized by this act only on vouchers signed by the Executive 7
8686 Director of the Arkansas Public Employees' Retirement System and on warrants 8
8787 issued thereon by the Auditor of State. 9
8888 (2) No voucher or warrant shall be drawn on funds of the system 10
8989 unless it has been previously authorized by a specific or general resolution 11
9090 adopted by the Board of Trustees of the Arkansas Public Employees' Retirement 12
9191 System. 13
9292 (c)(1)(A) Should any a change or error in the records of the system or 14
9393 any an audit of a member's annuity calculations result in any person's 15
9494 receiving more or less than the person would have been entitled to receive 16
9595 had the records or the calculations been correct an incorrect calculation , 17
9696 the board shall correct the error and, as far as is equitable and 18
9797 practicable, shall adjust the payment in accordance with the provisions of 19
9898 this subsection and in such a manner that the actuarial equivalent of the 20
9999 benefit to which the person was correctly entitled shall be paid. 21
100100 (B) However, no monthly adjustment of less than one dollar 22
101101 ($1.00) shall be made. 23
102102 (2)(A) The board shall have the right to recover any overpayment 24
103103 that any person may have received from funds of the system , provided if the 25
104104 overpayment is determined and the person is so notified of the error within 26
105105 one (1) year of the date of the last overpayment the limitation period set 27
106106 forth in subdivision (c)(7) of this section . 28
107107 (B) If the An overpayment is determined at a date later 29
108108 than one (1) year after the date of the last overpayment beyond the 30
109109 limitation period, the overpayment shall not be recouped by the board unless 31
110110 the overpayment is a result of an error on the part of a member, retirant, or 32
111111 beneficiary caused or created through intentional nondisclosure, fraud, 33
112112 misrepresentation, or gross negligence by the person receiving the 34
113113 overpayment. 35
114114 (C) In all instances where an overpayment is determined, 36 HB1304
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117117 any From the date of correction of the error, subsequent payments shall be 1
118118 adjusted to the correct amount. 2
119119 (3) If it is determined that any person has received an 3
120120 underpayment from the funds of the system , regardless of the date of the 4
121121 determination, the system shall pay in a lump sum to the person the total of 5
122122 any underpayments made prior to the date of determination, and any subsequent 6
123123 payments annuity amount shall be adjusted to the correct amount. 7
124124 (4)(A) If the annuity amount is decreased upon the 8
125125 reconsideration correction of the error , the matters involved in the decrease 9
126126 shall be system shall set forth in writing the reason for the adjustment and 10
127127 shall be subject to review upon the filing of an appeal thereof by promptly 11
128128 notify the member or annuity recipient. 12
129129 (B) The redetermination adjustment of the annuity amount 13
130130 shall be deemed to be final and binding on all parties unless, within twenty 14
131131 (20) thirty (30) days after the mailing of notice of the redetermination to 15
132132 the member's last known address written notification using the contact 16
133133 information filed with the system , or twenty (20) thirty (30) days after 17
134134 personal delivery of the notice to the member person, an appeal thereof is 18
135135 filed the person files a request with the Executive Director of the Arkansas 19
136136 Public Employees' Retirement System with the executive director for the 20
137137 executive director's determination of the adjustment . 21
138138 (C) The Secretary of the Department of Finance and 22
139139 Administration shall promptly hear all appeals An appeal of annuity 23
140140 determinations or redeterminations and the executive director's determination 24
141141 shall conduct such hearings be heard at an administrative hearing in 25
142142 accordance with procedures set forth by the board and the Arkansas 26
143143 Administrative Procedures Act, § 25 -15-201 et seq. 27
144144 (5) Any action to enforce or create an obligation, duty, or 28
145145 right arising under this chapter, or a request to change a record of the 29
146146 system, including without limitation an attempt to establish service with the 30
147147 system or add service to a member’s record shall be commenced within the 31
148148 limitation period. 32
149149 (6)(A) When the system determines that there is an error in the 33
150150 records, the director shall have the discretion to resolve the matter in a 34
151151 fair manner to all parties affected by the error and may waive or modify the 35
152152 impact of a rule, provision, or law, including without limitation interest 36 HB1304
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155155 and penalties, if a determination provides clear and convincing evidence that 1
156156 the error: 2
157157 (i) Creates an undue hardship to the system, member, 3
158158 person, or employer that is direct and observable; and 4
159159 (ii) Was not a result of intentional nondisclosure, 5
160160 fraud, misrepresentation, or gross negligence. 6
161161 (B) The executive director’s determination may consider: 7
162162 (i) The degree of fault of the system, member, 8
163163 retiree, designated beneficiary, person, or employer; 9
164164 (ii) Any ambiguity in the interpretation of the 10
165165 circumstances, rule, or law; 11
166166 (iii) Whether the cost to the system of correcting 12
167167 the error is outweighed by the benefit afforded to the system, member, 13
168168 retiree, designated beneficiary, person, or employer; 14
169169 (iv) Whether or not an expedited decision serves 15
170170 public interest; and 16
171171 (v) The fundamental fairness of a remedy in a 17
172172 particular situation. 18
173173 (C) The executive director’s determination shall not: 19
174174 (i) Substantially impact the actuarial soundness of 20
175175 the system; or 21
176176 (ii) Conflict with federal law concerning the tax -22
177177 qualified status of the system. 23
178178 (7) As used in this subsection, “limitation period” means a 24
179179 period of time that includes the fiscal year and the four (4) fiscal years 25
180180 immediately following in which the system, member, person, or employer 26
181181 discovers or should have discovered the error in the system’s records. 27
182182 28
183183 SECTION 3. Arkansas Code § 24 -6-205 is amended to read as follows: 29
184184 24-6-205. Correction of errors. 30
185185 (a) Should any change or error in the records of the State Police 31
186186 Retirement System or the Division of Arkansas State Police result in any 32
187187 person's receiving from the system more or less than he or she would have 33
188188 been entitled to receive had the records been correct an incorrect 34
189189 calculation, the Board of Trustees of the State Police Retirement System 35
190190 shall correct the error and, as far as is equitable and practicable, shall 36 HB1304
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193193 adjust the payment in accordance with the provisions of this section and in 1
194194 such manner that the actuarial equivalent of the benefit to which the person 2
195195 was correctly entitled shall be paid. 3
196196 (b)(1) The board shall have the right to recover any overpayment any 4
197197 person may have received from funds of the system if an overpayment is 5
198198 determined and the recipient is notified of the error within the limitation 6
199199 period set out in subsection (g) of this section . 7
200200 (2) An overpayment determined beyond the limitation period shall 8
201201 not be recouped by the board unless the overpayment is a result of an error 9
202202 caused or created through intentional nondisclosure, fraud, 10
203203 misrepresentation, or gross negligence by the person receiving the 11
204204 overpayment. 12
205205 (3) Subsequent payments shall be adjusted to the correct amount 13
206206 from the date of correction of the error. 14
207207 (c) If it is determined that any person has received an underpayment 15
208208 from the funds of the system: 16
209209 (1) The system shall pay in a lump sum to the person the total 17
210210 of the corrected amount; and 18
211211 (2) Any subsequent annuity amount shall be adjusted to the 19
212212 correct amount. 20
213213 (d)(1) If the annuity amount is decreased upon correction of the 21
214214 error, the system shall: 22
215215 (A) Set forth in writing the reason for the adjustment; 23
216216 and 24
217217 (B) Promptly notify the member or annuity recipient. 25
218218 (2) The adjustment of the annuity amount shall be deemed to be 26
219219 final and binding on all parties unless, within thirty (30) days after the 27
220220 mailing of notification to the person’s last address on file with the system, 28
221221 or thirty (30) days after personal delivery of the notice to the person, the 29
222222 person files a request with the Executive Secretary of the State Police 30
223223 Retirement System for the executive secretary’s determination. 31
224224 (3) An appeal of the executive secretary’s determination shall 32
225225 be heard at an administrative hearing in accordance with procedures set forth 33
226226 by the board and the Arkansas Administrative Procedures Act, § 25 -15-201 et 34
227227 seq. 35
228228 (e) Any action to enforce or create an obligation, duty, or right 36 HB1304
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231231 arising under this chapter, or a request to change a record of the system, 1
232232 including without limitation an attempt to establish service with the system 2
233233 or add service to a member’s record, shall be commenced within the limitation 3
234234 period. 4
235235 (f)(1) When the system determines that an error exists in the records, 5
236236 the executive secretary shall have the discretion to resolve the matter in a 6
237237 fair manner to all parties affected by the error and may waive or modify the 7
238238 impact of a rule, provision, or law, including interest and penalties, if a 8
239239 determination provides clear and convincing evidence that: 9
240240 (A) The error creates an undue hardship to the system, 10
241241 member, retiree, designated beneficiary, person, or or the Division of 11
242242 Arkansas State Police that is direct and observable; and 12
243243 (B) The error was not a result of intentional 13
244244 nondisclosure, fraud, misrepresentation, or gross negligence. 14
245245 (2) The executive secretary’s determination may consider: 15
246246 (A) The degree of fault of the system, member, retiree, 16
247247 designated beneficiary, person, or the Division of the Arkansas State Police; 17
248248 (B) An ambiguity in the interpretation of the 18
249249 circumstances, rule, or law; 19
250250 (C) Whether the cost to the system of correcting the error 20
251251 is outweighed by the benefit afforded to the system, member, retiree, 21
252252 designated beneficiary, person, or the Division of the Arkansas State Police; 22
253253 (D) Whether or not an expedited decision serves the public 23
254254 interest; and 24
255255 (E) The fundamental fairness of a remedy in a particular 25
256256 situation. 26
257257 (3) The executive secretary’s determination shall not: 27
258258 (A) Substantially impact the actuarial soundness of the 28
259259 system; or 29
260260 (B) Conflict with federal law concerning the tax -qualified 30
261261 status of the system. 31
262262 (g) As used in this section, “limitation period” means a period of 32
263263 time that includes the fiscal year and the four (4) fiscal years immediately 33
264264 following in which the system, member, retiree, designated beneficiary, 34
265265 person, or the Division of the Arkansas State Police discovers or should have 35
266266 discovered the error in the system’s records. 36 HB1304
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269269 1
270270 SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 2
271271 General Assembly of the State of Arkansas that the provisions of the Arkansas 3
272272 Code related to member, retiree, and designated beneficiary contact 4
273273 information under the Arkansas Public Employees' Retirement System are in 5
274274 need of revision in order to provide clarity and increase efficiency of the 6
275275 system; that a limitation period is needed for the correction of errors of 7
276276 records of members, retirees, and designated beneficiaries under the Arkansas 8
277277 Public Employees' Retirement System and the State Police Retirement System in 9
278278 order to provide clarity and increase efficiency of the systems; and that 10
279279 this act is immediately necessary to achieve the goals of the respective 11
280280 systems to safeguard and maintain an orderly system of benefits. Therefore, 12
281281 an emergency is declared to exist, and this act being immediately necessary 13
282282 for the preservation of the public peace, health, and safety shall become 14
283283 effective on: 15
284284 (1) The date of its approval by the Governor; 16
285285 (2) If the bill is neither approved nor vetoed by the Governor, 17
286286 the expiration of the period of time during which the Governor may veto the 18
287287 bill; or 19
288288 (3) If the bill is vetoed by the Governor and the veto is 20
289289 overridden, the date the last house overrides the veto. 21
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