Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas               As Engrossed:      S3/9/21 S3/23/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             SENATE BILL 231
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 By: Senator M. Johnson
 By: Representative Richardson
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                                   For An Act To Be Entitled
                AN ACT TO AMEND THE LAW CONCERNING RETIREMENT
                BENEFITS; TO PROHIBIT COLLECTION OF BENEFITS BY
                MEMBERS AND RETIRANTS OF RETIREMENT SYSTEMS WHO ARE
                CONVICTED OF CERTAIN OFFENSES; AND FOR OTHER
                PURPOSES.
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                                               Subtitle
                         TO AMEND THE LAW CONCERNING RETIREMENT
                         BENEFITS; AND TO PROHIBIT COLLECTION OF
                         BENEFITS BY MEMBERS AND RETIRANTS OF
                         RETIREMENT SYSTEMS WHO ARE CONVICTED OF
                         CERTAIN OFFENSES.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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        SECTION 1.        Arkansas Code  24-1-301, concerning the definitions used
 in the forfeiture of retirement benefits, is amended to add additional
 subdivisions to read as follows:
                (3)(A)      "Benefit" means a monthly payment made to a retirant or
 the beneficiary of a member or retirant by a retirement system in this state.
                          (B)    "Benefit" does not include employee contributions to a
 retirement system in this state;
                (4)      "Member" means a person who is included in the membership of
 a retirement plan;
                (5)      "Public trust crime" means a crime prohibited under Arkansas
 Constitution, Article 5,  9; and
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     As Engrossed:         S3/9/21 S3/23/21                                           SB231
                 (6)    "Retirant" means a member who retires with a benefit payable
 from funds of a retirement plan.
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        SECTION 2.       Arkansas Code  24-1-302 is amended to read as follows:
        24-1-302. Forfeiture of benefits.
        (a)(1)     A beneficiary forfeits his or her right to benefit payments
 under a retirement system if he or she:
                         (A)   Is convicted by a court of competent jurisdiction of
 the:
                               (i)    The unlawful killing of the member or retirant;
 or
                               (ii)   Committing a public trust crime while
 performing his or her duties as an elected official;
                         (B)   Pleads guilty or nolo contendere to the:
                               (i)    The unlawful killing of the member or retirant;
 or
                               (ii)   Committing a public trust crime while
 performing his or her duties as an elected official;
                         (C)   Is found liable by a court of competent jurisdiction
 for the unlawful killing of the member or retirant by a preponderance of the
 evidence in a civil action;
                         (D)   Is acquitted by a court of competent jurisdiction for
 the unlawful killing of the member or retirant by reason of insanity, mental
 defect or disease, or any other mental incapacity; or
                         (E)   Is found by a court of competent jurisdiction to lack
 the capacity to understand or effectively assist in defending a criminal
 proceeding against him or her for the unlawful killing of the member or
 retirant.
                 (2)    A member or retirant forfeits his or her right to benefit
 payments under a retirement system if he or she:
                         (A)   Is convicted by a court of competent jurisdiction of
 committing a public trust crime while performing his or her duties as an
 elected official; or
                         (B)   Pleads guilty or nolo contendere to committing a
 public trust crime while performing his or her duties as an elected official.
                 (3)    If a retirement system finds that a member, retirant, or
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     As Engrossed:    S3/9/21 S3/23/21                                                 SB231
 beneficiary has forfeited his or her right to benefit payments from the
 retirement system under subdivision (a)(1) of this section subdivision (a)(1)
 or (a)(2) of this section, the retirement system shall:
                        (A)   treat Treat the member, retirant, or beneficiary as if
 he or she is deceased;
                        (B)   and shall not Not make benefit payments to the member,
 retirant, or beneficiary; and
                        (C)   Refund any employee contributions, excluding interest,
 made by the member or retirant to the retirement system to the:
                              (i)    Member or retirant; or
                              (ii)   If deceased, the estate of the member or
 retirant if the member or retirant does not have a contingent beneficiary who
 may receive benefit payments under this section.
               (4)(A)     A retirement system may make the refund of employee
 contributions to a member or retirant by a:
                              (i)    Lump-sum payment to the member or retirant; or
                              (ii)   Series of monthly payments to the member or
 retirant in amounts equal to the amount the retirement system would have paid
 to the member or retirant had he or she not forfeited his or her benefits.
                        (B)   A retirement system shall make the refund of employee
 contributions to the estate of a member or retirant by lump-sum payment to
 the estate of the member or retirant.
                        (C)   Payments made under subdivision (a)(4)(A) of this
 section shall cease when the member or retirant is fully reimbursed for his
 or her employee contributions, excluding interest, to the retirement system.
      (b)(1)     If a member, retirant, or beneficiary appeals his or her
 conviction for an offense described under subdivision (a)(1) of this section
 subdivision (a)(1) or (a)(2) of this section, benefit payments shall not be
 paid to the member, retirant, or beneficiary unless the appeal results in a
 reversal of the conviction.
               (2)(A)     If the conviction of a member, retirant, or beneficiary
 for an offense described under subdivision (a)(1) of this section subdivision
 (a)(1) or (a)(2) of this section is reversed, the retirement system may make
 benefit payments to the member, retirant, or beneficiary.
                        (B)   If the conviction of a member, retirant, or
 beneficiary for an offense described under subdivision (a)(1) of this section
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     As Engrossed:    S3/9/21 S3/23/21                                          SB231
 subdivision (a)(1) or (a)(2) of this section is affirmed, the retirement
 system shall not make benefit payments to the member, retirant, or
 beneficiary.
      (c)   If a member or retirant does not have a contingent beneficiary who
 may receive benefit payments under this section, the member or retirant's
 contributions to the retirement system shall be refunded to the estate of the
 member or retirant.
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      SECTION 3.     Arkansas Code  24-1-303  24-1-305 are amended to read as
 follows:
      24-1-303. Suspension of benefit payments.
      (a)   A retirement system may suspend benefit payments to a retirant or
 beneficiary if the retirement system:
            (1)    Receives the written notice required under  24-1-304  24-
 1-304(a)(1) from a prosecuting attorney; or
            (2)    Has reasonable cause to believe that the retirant or
 beneficiary will be charged with the unlawful killing of the member or
 retirant any offense described under  24-1-302.
      (b)   If benefit payments are suspended under this section, the
 suspension shall continue until:
            (1)    A final adjudication of the criminal or civil proceeding; or
            (2)(A)     The retirement system receives written confirmation from
 the prosecuting attorney that the retirant or beneficiary will not be charged
 with the unlawful killing of the member or retirant an offense described
 under  24-1-302.
                     (B)   The retirement system shall request written
 confirmation from the prosecuting attorney stating that the retirant or
 beneficiary will not be charged with the unlawful killing of the member or
 retirant an offense described under  24-1-302.
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      24-1-304. Notice to retirement system.
      (a)   A prosecuting attorney shall send written notice by certified
 mail, return receipt requested, to the executive director or executive
 secretary of the applicable retirement system when a member, retirant, or
 beneficiary:
            (1)    Is charged with an offense described under  24-1-302; or
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     As Engrossed:           S3/9/21 S3/23/21                                          SB231
                   (2)(A)     Will not be charged with an offense described under  24-
 1-302.
                            (B)   If the prosecuting attorney receives a request under 
 24-1-303 from a retirement system and a decision on whether the member,
 retirant, or beneficiary will be or will not be charged with an offense
 described under  24-1-302 has not been made, the prosecuting attorney shall
 notify the retirement system that a decision is pending.
          (b)   The clerk of the court in which the proceeding against the member,
 retirant, or beneficiary is being conducted shall send written notice by
 certified mail, return receipt requested, to the executive director or
 executive secretary of the applicable retirement system when:
                   (1)    A member, retirant, or beneficiary is convicted of an
 offense described under  24-1-302;
                   (2)    A member, retirant, or beneficiary appeals his or her
 conviction for an offense described under  24-1-302; and
                   (3)    The appellate court issues a final ruling upholding or
 reversing the conviction of the member, retirant, or beneficiary for an
 offense described under  24-1-302.
          (c)   A written notice required under this section shall include any
 information that the applicable retirement system determines necessary for
 the retirement system to identify the account of the member or retirant and
 implement this subchapter.
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          24-1-305. Notice to member, retirant, or beneficiary.
          (a)(1)     The executive director or executive secretary of the applicable
 retirement system or his or her designee shall notify a member, retirant, or
 beneficiary when benefits shall not be paid as provided under  24-1-302.
                   (2)    The notice provided under subdivision (a)(1) of this section
 shall advise the member, retirant, or beneficiary of:
                            (A)   The specific facts supporting the retirement system's
 nonpayment of benefits; and
                            (B)   His or her right to request a waiver of the forfeiture
 before the board of trustees of the retirement system.
          (b)(1)     A member, retirant, or beneficiary shall request a waiver of
 the forfeiture by the board of trustees of the retirement system within
 thirty (30) days of receiving the notice required under subsection (a) of
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     As Engrossed:    S3/9/21 S3/23/21                                          SB231
 this section.
            (2)    A waiver request made under subdivision (b)(1) of this
 section shall be submitted to the board of trustees of the retirement system
 in the manner specified by the applicable retirement system.
      (c)   Upon receiving a waiver request submitted under subdivision (b)(1)
 of this section, the board of trustees of the retirement system shall set and
 notify the member, retirant, or beneficiary of the waiver hearing date.
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                                     /s/M. Johnson
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Statutes affected: 
Old version SB231 Original - 1-27-2021 01:55 PM: 24-1-301
Old version SB231 V2 - 3-9-2021 10:47 AM: 24-1-301
Old version SB231 V3 - 3-23-2021 11:13 AM: 24-1-301
SB 231: 24-1-301