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 if they were not receiving the compensation benefits.

Additionally, the bill modifies the treatment of annual compensation by disregarding any amounts that exceed the limitations set forth in the Internal Revenue Code, specifically updating the reference date from January 1, 2011, to January 1, 2025. This change aims to clarify the calculation of benefits under the retirement system and ensure compliance with federal regulations.

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)