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 members to facilitate their early retirement. The previous language that limited these negotiations to tenured faculty has been expanded to include staff, and the requirement for the amount of allowances to not exceed five percent of the previous fiscal year's personnel costs has been removed. Additionally, the bill mandates that the boards of trustees report the disposition of these allowances to the Legislative Joint Auditing Committee annually.

Furthermore, the bill introduces provisions for managing early retirement window incentives for qualified faculty and staff who voluntarily separate from their institutions. The criteria for eligibility have been updated to include all full-time employees who meet the requirements of any state-sponsored retirement program, rather than just those aged fifty-five or older. An emergency clause is included, stating that immediate action is necessary to negotiate contracts before the end of the spring 2025 semester, ensuring that the act takes effect promptly upon approval.