1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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2 | 2 | | *LJH110* 01/30/2025 1:01:52 PM LJH110 |
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3 | 3 | | State of Arkansas 1 |
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4 | 4 | | 95th General Assembly A Bill 2 |
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5 | 5 | | Regular Session, 2025 SENATE BILL 151 3 |
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6 | 6 | | 4 |
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7 | 7 | | By: Senators M. Johnson, C. Tucker 5 |
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8 | 8 | | By: Representatives Andrews, Rye 6 |
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9 | 9 | | 7 |
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10 | 10 | | For An Act To Be Entitled 8 |
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11 | 11 | | AN ACT TO THE AMEND LAW CONCERNING RETIREMENT 9 |
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12 | 12 | | BENEFITS; TO PROHIBIT COLLECTION OF BENEFITS BY 10 |
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13 | 13 | | MEMBERS, RETIRANTS, OR BENEFICIARIES OF RETIREMENT 11 |
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14 | 14 | | SYSTEMS WHO HAVE BEEN CONVICTED OF CERTAIN OFFENSES; 12 |
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15 | 15 | | AND FOR OTHER PURPOSES. 13 |
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16 | 16 | | 14 |
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17 | 17 | | 15 |
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18 | 18 | | Subtitle 16 |
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19 | 19 | | TO AMEND LAW CONCERNING RETIREMENT 17 |
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20 | 20 | | BENEFITS; AND TO PROHIBIT COLLECTION OF 18 |
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21 | 21 | | BENEFITS BY MEMBERS, RETIRANTS, OR 19 |
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22 | 22 | | BENEFICIARIES OF RETIREMENT SYSTEMS WHO 20 |
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23 | 23 | | HAVE BEEN CONVICTED OF CERTAIN OFFENSES. 21 |
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24 | 24 | | 22 |
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25 | 25 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23 |
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26 | 26 | | 24 |
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27 | 27 | | SECTION 1. Arkansas Code § 24 -1-301, concerning the definitions used 25 |
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28 | 28 | | in the forfeiture of retirement benefits, is amended to add additional 26 |
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29 | 29 | | subdivisions to read as follows: 27 |
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30 | 30 | | (3)(A) "Benefit" means a monthly payment made to a retirant or 28 |
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31 | 31 | | the beneficiary of a member or retirant by a retirement system. 29 |
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32 | 32 | | (B) "Benefit" does not include employee contributions to a 30 |
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33 | 33 | | retirement system; 31 |
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34 | 34 | | (4) "Member" means a person who is included in the membership of 32 |
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35 | 35 | | a retirement system; 33 |
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36 | 36 | | (5)(A) "Public office" means an office created by or under the 34 |
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37 | 37 | | authority of the laws of the State of Arkansas or a subdivision thereof that 35 |
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38 | 38 | | is filled by a person who is elected by the voters of the State of Arkansas. 36 SB151 |
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41 | 41 | | (B) "Public office" does not include an office created by 1 |
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42 | 42 | | or under the authority of any federal law; 2 |
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43 | 43 | | (6) "Public trust crime" means a crime prohibited under Arkansas 3 |
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44 | 44 | | Constitution, Article 5, § 9; and 4 |
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45 | 45 | | (7) "Retirant" means a member who retires with a benefit payable 5 |
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46 | 46 | | from funds of a retirement system. 6 |
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47 | 47 | | 7 |
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48 | 48 | | SECTION 2. Arkansas Code § 24 -1-302 is amended to read as follows: 8 |
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49 | 49 | | 24-1-302. Forfeiture of benefits. 9 |
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50 | 50 | | (a)(1) A member or retirant forfeits his or her right to benefit 10 |
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51 | 51 | | payments under a retirement system if he or she pleads guilty or nolo 11 |
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52 | 52 | | contendere to or is found guilty of a public trust crime while holding public 12 |
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53 | 53 | | office in this state. 13 |
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54 | 54 | | (2) A beneficiary forfeits his or her right to benefit payments 14 |
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55 | 55 | | under a retirement system if he or she: 15 |
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56 | 56 | | (A) Is convicted by a court of competent jurisdiction of 16 |
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57 | 57 | | the unlawful killing of the member or retirant Pleads guilty or nolo 17 |
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58 | 58 | | contendere to or is found guilty of the unlawful killing of a member or 18 |
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59 | 59 | | retirant; 19 |
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60 | 60 | | (B) Pleads guilty or nolo contendere to the unlawful 20 |
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61 | 61 | | killing of the member or retirant Pleads guilty or nolo contendere to or is 21 |
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62 | 62 | | found guilty of a public trust crime while holding public office in this 22 |
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63 | 63 | | state, unless he or she is participating in a retirement system defined under 23 |
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64 | 64 | | § 24-1-301(2)(F); or 24 |
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65 | 65 | | (C) Is found liable by a court of competent jurisdiction 25 |
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66 | 66 | | for the unlawful killing wrongful death of the member or retirant by a 26 |
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67 | 67 | | preponderance of the evidence in a civil action ; 27 |
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68 | 68 | | (D) Is acquitted by a court of competent jurisdiction for 28 |
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69 | 69 | | the unlawful killing of the member or retirant by reason of insanity, mental 29 |
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70 | 70 | | defect or disease, or any other mental incapacity; or 30 |
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71 | 71 | | (E) Is found by a court of competent jurisdiction to lack 31 |
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72 | 72 | | the capacity to understand or effectively assist in defending a criminal 32 |
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73 | 73 | | proceeding against him or her for the unlawful killing of the member or 33 |
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74 | 74 | | retirant. 34 |
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75 | 75 | | (2)(3)(A) If a retirement system finds that a member, retirant, 35 |
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76 | 76 | | or beneficiary has forfeited his or her right to benefit payments from the 36 SB151 |
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79 | 79 | | retirement system under subdivision (a)(1) subsection (a) of this section, 1 |
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80 | 80 | | the retirement system shall treat the beneficiary as if he or she is 2 |
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81 | 81 | | deceased: 3 |
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82 | 82 | | (i) and shall not Not make benefit payments to the 4 |
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83 | 83 | | member, retirant, or beneficiary.; and 5 |
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84 | 84 | | (ii) Refund the employee contributions accumulated 6 |
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85 | 85 | | with interest as defined by the retirement system that were made by the 7 |
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86 | 86 | | member or retirant to the retirement system to: 8 |
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87 | 87 | | (a) The member or retirant; or 9 |
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88 | 88 | | (b) If deceased, the estate of the member or 10 |
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89 | 89 | | retirant if the member or retirant does not have a contingent beneficiary who 11 |
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90 | 90 | | may receive benefit payments under this section. 12 |
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91 | 91 | | (B) If a retirant is already receiving benefits, then his 13 |
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92 | 92 | | or her employee contributions, less benefits received by the retirant through 14 |
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93 | 93 | | the retirement system, shall be refunded to him or her in full. 15 |
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94 | 94 | | (4)(A) A retirement system may make the refund of employee 16 |
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95 | 95 | | contributions accumulated with interest as defined by the retirement system 17 |
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96 | 96 | | to a member or retirant by a: 18 |
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97 | 97 | | (i) Lump-sum payment to the member or retirant; or 19 |
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98 | 98 | | (ii) Series of monthly payments to the member or 20 |
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99 | 99 | | retirant in amounts equal to the amount the individual paid in to the 21 |
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100 | 100 | | retirement system with an interest rate as defined by the retirement system. 22 |
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101 | 101 | | (B) A retirement system shall make the refund of employee 23 |
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102 | 102 | | contributions to the estate of a member or retirant by a lump -sum payment to 24 |
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103 | 103 | | the estate of the member or retirant. 25 |
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104 | 104 | | (C) Payments made under subdivision (a)(4)(A) of this 26 |
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105 | 105 | | section shall cease when the member or retirant is fully reimbursed for his 27 |
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106 | 106 | | or her employee contributions paid in to the retirement system with an 28 |
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107 | 107 | | interest rate as defined by the retirement system. 29 |
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108 | 108 | | (b)(1) If a member, retirant, or beneficiary appeals his or her 30 |
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109 | 109 | | conviction for an offense or a judgment described under subdivision (a)(1) 31 |
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110 | 110 | | subdivision (a)(1) or (a)(2) of this section, benefit payments shall not be 32 |
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111 | 111 | | paid to the member, retirant, or beneficiary unless the appeal results in a 33 |
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112 | 112 | | reversal of the conviction or judgment. 34 |
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113 | 113 | | (2)(A) If the conviction of a member, retirant, or beneficiary 35 |
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114 | 114 | | for an offense or a judgment described under subdivision (a)(1) subdivision 36 SB151 |
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117 | 117 | | (a)(1) or (a)(2) of this section is reversed, the retirement system may make 1 |
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118 | 118 | | benefit payments to the member, retirant, or beneficiary upon repayment of 2 |
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119 | 119 | | accumulated contributions with interest to the system . 3 |
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120 | 120 | | (B) If the conviction of a member, retirant, or 4 |
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121 | 121 | | beneficiary for an offense or a judgment described under subdivision (a)(1) 5 |
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122 | 122 | | subdivision (a)(1) or (a)(2) of this section is affirmed, the retirement 6 |
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123 | 123 | | system shall not make benefit payments to the member, retirant, or 7 |
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124 | 124 | | beneficiary. 8 |
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125 | 125 | | (c) If a member or retirant does not have a contingent beneficiary who 9 |
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126 | 126 | | may receive benefit payments under this section, the member or retirant's 10 |
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127 | 127 | | contributions to the retirement system shall be refunded to the estate of the 11 |
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128 | 128 | | member or retirant. 12 |
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129 | 129 | | 13 |
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130 | 130 | | SECTION 3. DO NOT CODIFY. Legislative intent. 14 |
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131 | 131 | | It is the intent of the General Assembly that this act not be construed 15 |
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132 | 132 | | to apply retroactively to a member or retirant of a retirement system, and 16 |
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133 | 133 | | shall only apply to a member who begins making employee contributions 17 |
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134 | 134 | | following the effective date of this act. 18 |
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