This bill amends the Arkansas Local Police and Fire Retirement System by updating the contribution rates for members and adjusting the annuity benefits for retired members. Specifically, starting July 1, 2023, the contribution rate for covered members will increase from 8.5% to 9.5% of their pay, while the contribution for paid service members not defined in a specific subdivision will rise from 2.5% to 3.5%. Additionally, the bill modifies the annuity calculation for retired members, increasing the percentage of final average pay for various service scenarios, such as from 2.94% to 3% for positions not covered by Social Security and from 1.94% to 2% for those covered by Social Security.

The bill also includes an emergency clause, stating that the changes are necessary for the effective administration of the retirement system and to ensure that the benefits align with sound public pension policy and actuarial requirements. The emergency declaration emphasizes the importance of these updates for the members of the Arkansas Local Police and Fire Retirement System and the citizens of Arkansas, allowing the act to take effect on July 1, 2023.

Statutes affected:
Old version HB1260 Original - 1-25-2023 05:02 PM: 24-10-602(a)
Old version HB1260 V2 - 3-13-2023 10:00 AM: 24-10-404(b), 24-10-602(a), 03-13-2023
HB 1260: 24-10-404(b), 24-10-602(a), 03-13-2023
Act 536: 24-10-404(b), 24-10-602(a), 03-13-2023