HB1195
To Amend The Laws Concerning Employees Of A Municipality That Participates In The Arkansas Public Employees' Retirement System And The Election To Instead Participate In A Local Retirement Plan.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1195 amends Arkansas code regarding municipal employee participation in the Arkansas Public Employees' Retirement System (APERS). It clarifies the timeline for municipal employees, such as mayors or city clerks, to opt out of APERS in favor of a local retirement plan. Specifically, the bill stipulates that written notice of this election must be submitted within 90 days of assuming office, applicable to both a first term and any subsequent term. Additionally, the bill includes a temporary provision granting eligible employees a one-time, 90-day window from the act's effective date to exercise this election if they have not already done so. This measure ensures that municipal officials have clear statutory guidance on when they may choose between state-level and local retirement benefit systems.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are municipal employees in Arkansas, specifically elected officials like mayors and city clerks, who may prefer to participate in local retirement plans over the state-managed Arkansas Public Employees' Retirement System (APERS). By clarifying the opt-out timeline and providing a temporary window for action, the bill offers these individuals greater flexibility and security in managing their retirement planning during their terms of office.
Who Might Suffer?
The Arkansas Public Employees' Retirement System (APERS) could be negatively impacted by a reduction in the number of active members and the associated employer and employee contributions, which could affect the system's long-term funding projections. Additionally, municipalities that manage their own local retirement plans may face increased administrative responsibilities or financial liabilities depending on the funding status and benefit structure of those local plans compared to the state system.
Get Notified
Receive an email when this bill's status changes.