Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S2/14/23 S3/28/23
2 94th General Assembly A Bill
3 Regular Session, 2023 SENATE BILL 150
4
5 By: Senators M. Johnson, C. Tucker
6 By: Representatives G. Hodges, Rye
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8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING RETIREMENT
10 BENEFITS; TO PROHIBIT COLLECTION OF BENEFITS BY
11 MEMBERS, RETIRANTS, OR BENEFICIARIES OF RETIREMENT
12 SYSTEMS WHO ARE CONVICTED OF CERTAIN OFFENSES; AND
13 FOR OTHER PURPOSES.
14
15
16 Subtitle
17 TO AMEND THE LAW CONCERNING RETIREMENT
18 BENEFITS; AND TO PROHIBIT COLLECTION OF
19 BENEFITS BY MEMBERS, RETIRANTS, OR
20 BENEFICIARIES OF RETIREMENT SYSTEMS WHO
21 ARE CONVICTED OF CERTAIN OFFENSES.
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23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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26 SECTION 1. Arkansas Code § 24-1-301, concerning the definitions used
27 in the forfeiture of retirement benefits, is amended to add additional
28 subdivisions to read as follows:
29 (3)(A) "Benefit" means a monthly payment made to a retirant or
30 the beneficiary of a member or retirant by a retirement system.
31 (B) "Benefit" does not include employee contributions to a
32 retirement system;
33 (4) "Member" means a person who is included in the membership of
34 a retirement system;
35 (5)(A) "Public office" means an office created by or under the
36 authority of the laws of the State of Arkansas or a subdivision thereof that
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1 is filled by a person who is elected by the voters of the State of Arkansas.
2 (B) "Public office" does not include an office created by
3 or under the authority of any federal law;
4 (6) "Public trust crime" means a crime prohibited under Arkansas
5 Constitution, Article 5, § 9; and
6 (7) "Retirant" means a member who retires with a benefit payable
7 from funds of a retirement plan.
8
9 SECTION 2. Arkansas Code § 24-1-302 is amended to read as follows:
10 24-1-302. Forfeiture of benefits.
11 (a)(1) A member or retirant forfeits his or her right to benefit
12 payments under a retirement system if he or she pleads guilty or nolo
13 contendere to or is found guilty of a public trust crime while holding public
14 office in this state.
15 (2) A beneficiary forfeits his or her right to benefit payments
16 under a retirement system if he or she:
17 (A) Is convicted by a court of competent jurisdiction of
18 the unlawful killing of the member or retirant Pleads guilty or nolo
19 contendere to or is found guilty of the unlawful killing of a member or
20 retirant;
21 (B) Pleads guilty or nolo contendere to the unlawful
22 killing of the member or retirant Pleads guilty or nolo contendere to or is
23 found guilty of a public trust crime while holding public office in this
24 state, unless he or she is participating in a retirement system defined under
25 § 24-1-301(2)(F);
26 (C) Is found liable by a court of competent jurisdiction
27 for the unlawful killing wrongful death of the member or retirant by a
28 preponderance of the evidence in a civil action;.
29 (D) Is acquitted by a court of competent jurisdiction for
30 the unlawful killing of the member or retirant by reason of insanity, mental
31 defect or disease, or any other mental incapacity; or
32 (E) Is found by a court of competent jurisdiction to lack
33 the capacity to understand or effectively assist in defending a criminal
34 proceeding against him or her for the unlawful killing of the member or
35 retirant.
36 (2)(3) If a retirement system finds that a member, retirant, or
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1 beneficiary has forfeited his or her right to benefit payments from the
2 retirement system under subdivision (a)(1) subsection (a) of this section,
3 the retirement system shall treat the beneficiary as if he or she is
4 deceased:
5 (A) and shall not Not make benefit payments to the member,
6 retirant, or beneficiary.; and
7 (B) Refund the employee contributions accumulated with
8 interest as defined by the retirement system that were made by the member or
9 retirant to the retirement system to the:
10 (i) Member or retirant; or
11 (ii) If deceased, the estate of the member or
12 retirant if the member or retirant does not have a contingent beneficiary who
13 may receive benefit payments under this section.
14 (C) If a retirant is already receiving benefits, then his
15 or her employee contributions, less benefits received by the retirant through
16 the retirement system, shall be refunded to him or her in full.
17 (4)(A) A retirement system may make the refund of employee
18 contributions accumulated with interest as defined by the retirement system
19 to a member or retirant by a:
20 (i) Lump-sum payment to the member or retirant; or
21 (ii) Series of monthly payments to the member or
22 retirant in amounts equal to the amount the individual paid in to the
23 retirement system with an interest rate as defined by the retirement system.
24 (B) A retirement system shall make the refund of employee
25 contributions to the estate of a member or retirant by a lump-sum payment to
26 the estate of the member or retirant.
27 (C) Payments made under subdivision (a)(4)(A) of this
28 section shall cease when the member or retirant is fully reimbursed for his
29 or her employee contributions paid in to the retirement system with an
30 interest rate as defined by the retirement system.
31 (b)(1) If a member, retirant, or beneficiary appeals his or her
32 conviction for an offense or a judgment described under subdivision (a)(1)
33 subdivision (a)(1) or (a)(2) of this section, benefit payments shall not be
34 paid to the member, retirant, or beneficiary unless the appeal results in a
35 reversal of the conviction or judgment.
36 (2)(A) If the conviction of a member, retirant, or beneficiary
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1 for an offense or a judgment described under subdivision (a)(1) subdivision
2 (a)(1) or (a)(2) of this section is reversed, the retirement system may make
3 benefit payments to the member, retirant, or beneficiary upon repayment of
4 accumulated contributions with interest to the system.
5 (B) If the conviction of a member, retirant, or
6 beneficiary for an offense or a judgment described under subdivision (a)(1)
7 subdivision (a)(1) or (a)(2) of this section is affirmed, the retirement
8 system shall not make benefit payments to the member, retirant, or
9 beneficiary.
10 (c) If a member or retirant does not have a contingent beneficiary who
11 may receive benefit payments under this section, the member or retirant's
12 contributions to the retirement system shall be refunded to the estate of the
13 member or retirant.
14
15 SECTION 3. DO NOT CODIFY. Legislative intent.
16 It is the intent of the General Assembly that this act not be construed
17 to apply retroactively to a member or retirant of a retirement system, and
18 shall only apply to a member or retirant who begins making employee
19 contributions following this act's enactment.
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21 /s/M. Johnson
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Statutes affected:
Old version SB150 V2 - 2-14-2023 09:28 AM: 24-1-301
Old version SB150 V3 - 3-28-2023 10:23 AM: 24-1-301
SB 150: 24-1-301