The bill amends the Arkansas Local Police and Fire Retirement System by updating the definition of "pay" to include new provisions regarding temporary workers' compensation benefits. Specifically, it allows active members receiving these benefits for injuries or illnesses incurred during covered employment to remit their compensation to their employer. The employer is then required to report this total pay to the retirement system, ensuring that the reported pay does not exceed what the member would have earned without the compensation benefits.

Additionally, the bill modifies the existing law by removing the previous limitation date of January 1, 2011, for disregarding annual compensation that exceeds the limits set by the Internal Revenue Code, and instead sets this date to January 1, 2025. This change aims to align the retirement system's regulations with current federal standards and provide clarity on how compensation is calculated for retirement benefits.

Statutes affected:
Old version HB1341 V2 - 3-17-2025 12:32 PM: 24-10-102(26)
Old version HB1341 V3 - 3-31-2025 01:17 PM: 24-10-102(26)
Act 522: 24-10-102(26)