SB79
To Amend The Law Concerning The Arkansas Public Employees' Retirement System And The State Police Retirement System.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 79 amends Arkansas law regarding two public retirement systems: the Arkansas Public Employees' Retirement System (APERS) and the State Police Retirement System. The bill provides a mechanism for non-contributory members who hold service in both systems to correct an erroneous retirement date that occurred during a change in covered employment. Specifically, it allows such members to file an affidavit to adjust their retirement date to match their actual final date of employment, with provisions for calculating accrued interest on benefits. Additionally, the bill amends the APERS Deferred Retirement Option Plan (DROP) to allow members to change their selection of a retirement annuity one time after their initial election. This change is subject to the submission of an affidavit within specified timeframes and requires the member to repay any difference in monetary benefits received under the initial election.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are public employees and elected officials who are participants in the Arkansas Public Employees' Retirement System (APERS) or the State Police Retirement System, particularly those who have experienced administrative errors regarding their retirement dates or those who wish to adjust their annuity selection under the Deferred Retirement Option Plan (DROP) after their initial election.
Who Might Suffer?
The primary entity negatively impacted is the Arkansas Public Employees' Retirement System (APERS) itself, as the bill increases administrative complexity and potentially increases the risk of financial liabilities or actuarial adjustments due to the retroactive correction of retirement dates and the allowance of annuity selection changes. Additionally, members utilizing the annuity change option may be negatively impacted by the requirement to make a lump-sum payment to cover the difference in benefits already received.
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