Stricken language would be deleted from and underlined language would be added to present law. *LJH110* 01/30/2025 1:01:52 PM LJH110 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 151 3 4 By: Senators M. Johnson, C. Tucker 5 By: Representatives Andrews, Rye 6 7 For An Act To Be Entitled 8 AN ACT TO THE AMEND LAW CONCERNING RETIREMENT 9 BENEFITS; TO PROHIBIT COLLECTION OF BENEFITS BY 10 MEMBERS, RETIRANTS, OR BENEFICIARIES OF RETIREMENT 11 SYSTEMS WHO HAVE BEEN CONVICTED OF CERTAIN OFFENSES; 12 AND FOR OTHER PURPOSES. 13 14 15 Subtitle 16 TO AMEND LAW CONCERNING RETIREMENT 17 BENEFITS; AND TO PROHIBIT COLLECTION OF 18 BENEFITS BY MEMBERS, RETIRANTS, OR 19 BENEFICIARIES OF RETIREMENT SYSTEMS WHO 20 HAVE BEEN CONVICTED OF CERTAIN OFFENSES. 21 22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23 24 SECTION 1. Arkansas Code § 24 -1-301, concerning the definitions used 25 in the forfeiture of retirement benefits, is amended to add additional 26 subdivisions to read as follows: 27 (3)(A) "Benefit" means a monthly payment made to a retirant or 28 the beneficiary of a member or retirant by a retirement system. 29 (B) "Benefit" does not include employee contributions to a 30 retirement system; 31 (4) "Member" means a person who is included in the membership of 32 a retirement system; 33 (5)(A) "Public office" means an office created by or under the 34 authority of the laws of the State of Arkansas or a subdivision thereof that 35 is filled by a person who is elected by the voters of the State of Arkansas. 36 SB151 2 01/30/2025 1:01:52 PM LJH110 (B) "Public office" does not include an office created by 1 or under the authority of any federal law; 2 (6) "Public trust crime" means a crime prohibited under Arkansas 3 Constitution, Article 5, § 9; and 4 (7) "Retirant" means a member who retires with a benefit payable 5 from funds of a retirement system. 6 7 SECTION 2. Arkansas Code § 24 -1-302 is amended to read as follows: 8 24-1-302. Forfeiture of benefits. 9 (a)(1) A member or retirant forfeits his or her right to benefit 10 payments under a retirement system if he or she pleads guilty or nolo 11 contendere to or is found guilty of a public trust crime while holding public 12 office in this state. 13 (2) A beneficiary forfeits his or her right to benefit payments 14 under a retirement system if he or she: 15 (A) Is convicted by a court of competent jurisdiction of 16 the unlawful killing of the member or retirant Pleads guilty or nolo 17 contendere to or is found guilty of the unlawful killing of a member or 18 retirant; 19 (B) Pleads guilty or nolo contendere to the unlawful 20 killing of the member or retirant Pleads guilty or nolo contendere to or is 21 found guilty of a public trust crime while holding public office in this 22 state, unless he or she is participating in a retirement system defined under 23 § 24-1-301(2)(F); or 24 (C) Is found liable by a court of competent jurisdiction 25 for the unlawful killing wrongful death of the member or retirant by a 26 preponderance of the evidence in a civil action ; 27 (D) Is acquitted by a court of competent jurisdiction for 28 the unlawful killing of the member or retirant by reason of insanity, mental 29 defect or disease, or any other mental incapacity; or 30 (E) Is found by a court of competent jurisdiction to lack 31 the capacity to understand or effectively assist in defending a criminal 32 proceeding against him or her for the unlawful killing of the member or 33 retirant. 34 (2)(3)(A) If a retirement system finds that a member, retirant, 35 or beneficiary has forfeited his or her right to benefit payments from the 36 SB151 3 01/30/2025 1:01:52 PM LJH110 retirement system under subdivision (a)(1) subsection (a) of this section, 1 the retirement system shall treat the beneficiary as if he or she is 2 deceased: 3 (i) and shall not Not make benefit payments to the 4 member, retirant, or beneficiary.; and 5 (ii) Refund the employee contributions accumulated 6 with interest as defined by the retirement system that were made by the 7 member or retirant to the retirement system to: 8 (a) The member or retirant; or 9 (b) If deceased, the estate of the member or 10 retirant if the member or retirant does not have a contingent beneficiary who 11 may receive benefit payments under this section. 12 (B) If a retirant is already receiving benefits, then his 13 or her employee contributions, less benefits received by the retirant through 14 the retirement system, shall be refunded to him or her in full. 15 (4)(A) A retirement system may make the refund of employee 16 contributions accumulated with interest as defined by the retirement system 17 to a member or retirant by a: 18 (i) Lump-sum payment to the member or retirant; or 19 (ii) Series of monthly payments to the member or 20 retirant in amounts equal to the amount the individual paid in to the 21 retirement system with an interest rate as defined by the retirement system. 22 (B) A retirement system shall make the refund of employee 23 contributions to the estate of a member or retirant by a lump -sum payment to 24 the estate of the member or retirant. 25 (C) Payments made under subdivision (a)(4)(A) of this 26 section shall cease when the member or retirant is fully reimbursed for his 27 or her employee contributions paid in to the retirement system with an 28 interest rate as defined by the retirement system. 29 (b)(1) If a member, retirant, or beneficiary appeals his or her 30 conviction for an offense or a judgment described under subdivision (a)(1) 31 subdivision (a)(1) or (a)(2) of this section, benefit payments shall not be 32 paid to the member, retirant, or beneficiary unless the appeal results in a 33 reversal of the conviction or judgment. 34 (2)(A) If the conviction of a member, retirant, or beneficiary 35 for an offense or a judgment described under subdivision (a)(1) subdivision 36 SB151 4 01/30/2025 1:01:52 PM LJH110 (a)(1) or (a)(2) of this section is reversed, the retirement system may make 1 benefit payments to the member, retirant, or beneficiary upon repayment of 2 accumulated contributions with interest to the system . 3 (B) If the conviction of a member, retirant, or 4 beneficiary for an offense or a judgment described under subdivision (a)(1) 5 subdivision (a)(1) or (a)(2) of this section is affirmed, the retirement 6 system shall not make benefit payments to the member, retirant, or 7 beneficiary. 8 (c) If a member or retirant does not have a contingent beneficiary who 9 may receive benefit payments under this section, the member or retirant's 10 contributions to the retirement system shall be refunded to the estate of the 11 member or retirant. 12 13 SECTION 3. DO NOT CODIFY. Legislative intent. 14 It is the intent of the General Assembly that this act not be construed 15 to apply retroactively to a member or retirant of a retirement system, and 16 shall only apply to a member who begins making employee contributions 17 following the effective date of this act. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36