The bill amends existing laws regarding special allowances to encourage early retirement for employees of publicly supported colleges and universities in Arkansas. It allows the presidents and chancellors of these institutions, with board approval, to negotiate special allowances for both tenured faculty and staff to facilitate early retirement. The previous language limiting these allowances to tenured faculty has been removed, expanding eligibility. Additionally, the bill eliminates the cap on the total amount of allowances that can be paid in a fiscal year, which was previously set at five percent of the aggregate personnel costs from the preceding year.

Furthermore, the bill introduces provisions for managing early retirement window incentives for qualified faculty and staff who voluntarily separate from their institutions. It specifies that the boards of trustees can provide special allowances to achieve savings in personnel costs, with criteria for participation being established by the boards. The bill also includes an emergency clause, stating that immediate action is necessary to negotiate contracts regarding retirement plans before the end of the spring 2025 semester. This urgency underscores the need for timely implementation of the changes proposed in the bill.