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 work-related injuries or illnesses to remit their compensation to their employer, who must then report this total pay to the retirement system. The reported pay for any month cannot exceed what the member would have earned had they not been receiving the temporary benefits.

Additionally, the bill clarifies that annual compensation exceeding the limits set by the Internal Revenue Code will be disregarded, with the previous cutoff date of January 1, 2011, being updated to January 1, 2025. This change aims to ensure that the retirement system's calculations remain compliant with federal regulations while providing clarity on how temporary compensation impacts reported pay.

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)