Arkansas House Bill HB1304

Arkansas 2025 Regular Session

• Introduced: 1/29/25
• Refer: 1/29/25
• Failed: 5/5/25

Caption

To Set A Limitation Period For The Correction Of Errors Under The Arkansas Public Employees' Retirement System And The State Police Retirement System.

Impact

A significant aspect of the bill is the introduction of a limitation period for correcting errors related to benefit payments. It specifies that if the system cannot make a payment within five years due to a lack of response to communications, any amount owed may be forfeited to the trust assets of the system. This provision is intended to protect the integrity of the retirement system and ensure that funds are managed effectively, rather than remaining indefinitely available for claims that may never be pursued by beneficiaries.

Summary

House Bill 1304 addresses key provisions regarding contact information for members, retirees, and designated beneficiaries of the Arkansas Public Employees' Retirement System and the State Police Retirement System. The bill stipulates that members and retirees must provide written contact information to ensure they can be reached for necessary communications, particularly regarding benefit payments. This requirement is aimed at minimizing difficulties in contacting parties for whom benefits are payable, thereby streamlining the process relating to retirement benefits and reducing the likelihood of unclaimed assets due to lack of communication.

Contention

The bill also includes the right of the board to recover overpayments made to beneficiaries if such an overpayment is identified and the individual is notified within the established time frame. Overpayments discovered beyond this period cannot be recouped unless they stem from intentional misconduct by the beneficiary, which may raise concerns regarding the fairness and transparency of the correction processes. Critics may argue that this could create a potential burden for beneficiaries, especially in situations where they may not have been aware of discrepancies or miscommunications regarding their benefits.