HB1260

House Bill 1260 modifies the Arkansas Local Police and Fire Retirement System (LOPFI) to increase both employee contribution rates and retirement benefit formulas. Specifically, it raises the member contribution rates by 1% across various employment categories effective July 1, 2023. Additionally, it incrementally increases the percentage of final average pay used to calculate annuities for both Benefit Program 1 and Benefit Program 2 members. The bill clarifies provisions regarding temporary annuities for members retiring before reaching Social Security's minimum age for unreduced benefits and mandates the retroactive application of certain temporary annuity benefits for eligible retirees dating back to October 1, 1989. An emergency clause is included to ensure the changes take effect by July 1, 2023, to ensure the pension system remains actuarially sound.