SB151
To Amend Law Concerning Retirement Benefits; And To Prohibit Collection Of Benefits By Members, Retirants, Or Beneficiaries Of Retirement Systems Who Have Been Convicted Of Certain Offenses.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 151 amends Arkansas law regarding the forfeiture of retirement benefits for members, retirants, or beneficiaries convicted of 'public trust crimes' committed while holding public office. The bill defines key terms such as 'benefit,' 'public office,' and 'public trust crime.' It establishes that individuals convicted of such crimes forfeit their right to ongoing benefit payments. If a forfeiture occurs, the bill requires the retirement system to stop benefit payments and refund the individual's accumulated employee contributions, plus interest. It specifies that these refunds can be paid in a lump sum or in installments. The bill also includes provisions for handling appeals and ensures that if a conviction is reversed, the individual may be eligible for payments upon repayment of the previously refunded contributions. Finally, the bill explicitly states that it is not intended to apply retroactively to vested members, applying only to those who have not yet reached vested status as of the effective date.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are the state's public retirement systems and the taxpayers of Arkansas, as the bill protects public funds by preventing the payment of retirement benefits to individuals who have breached the public trust through criminal activity.
Who Might Suffer?
The primary groups negatively impacted are state or local government employees and officials who are not yet vested in a retirement system and who subsequently commit or are convicted of a 'public trust crime.' These individuals would lose their eligibility for future retirement benefit payments, receiving only a refund of their own contributions rather than the full pension benefits they might have otherwise accrued.
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