The bill amends the provisions regarding delinquent payments by political subdivisions under the Arkansas Local Police and Fire Retirement System. It changes the terminology from "Delinquent payments" to "Delinquency" and specifies that if a political subdivision fails to make a payment or reporting due to the Arkansas Local Police and Fire Retirement System within five calendar days of the due date, it will be considered delinquent. The delinquency will be certified according to the rules established by the Board of Trustees of the Arkansas Local Police and Fire Retirement System to the Treasurer of State. Additionally, the Treasurer is authorized to withhold all moneys due to the political subdivision by the state until the delinquency is resolved.

The bill also includes an emergency clause, stating that the management of delinquent payments for municipal firemen's and policemen's pension funds needs to be transferred from the Arkansas Local Police and Fire Retirement System to the Department of Finance and Administration for improved financial security and efficiency. It establishes an effective date of July 1, 2025, to allow time for necessary programming and educational notices to be sent to covered employers regarding the new procedures.