Local Police And Fire Pension And Relief Funds

Ark. Code Ann. tit. 24, ch. 11

in effect

Ark. Code Ann. § 24-11-101 Legislative intent.

(a) The provisions of this subchapter are intended to establish procedures whereby the benefits to members and beneficiaries under the firemen's relief and pension funds and the policemen's pension and relief funds within the respective municipalities of this state may be increased on an orderly basis without a deterioration of actuarial soundness and are further intended to establish procedures for review and certification in order that the proposed increase in pension and relief fund benefits will not result in a deterioration of actuarial soundness prior to the adoption or implementation thereof. (b) It is not the intent of this subchapter to repeal or modify any of the existing firemen's relief and pension fund or policemen's pension and relief fund laws of this state, and this subchapter shall be construed to supplement and to be in addition to any of those laws in effect.

Ark. Code Ann. § 24-11-102 Increase in benefits.

(a) The board of trustees of a municipal firemen's relief and pension fund and the board of trustees of a policemen's pension and relief fund are authorized to increase benefits for future or current retired members and beneficiaries of the firemen's relief and pension fund or policemen's pension and relief fund. (b) Any proposed increase by the board of trustees shall be in strict compliance with the following conditions: (1) The board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund shall adopt a resolution approved by not less than three-fourths (¾) of the membership of the board of trustees, outlining the proposed increase in benefits; (2)(A) The action proposed by the board of trustees under the resolution shall be determined by an actuarial valuation to be actuarially feasible to the extent that the unfunded liabilities resulting from the proposed increase in member or beneficiary benefits under the fund will be funded over a period of not more than thirty (30) years, pursuant to rules promulgated by the Arkansas Fire and Police Pension Review Board, based on the current available and known revenue or income sources available to the retirement and pension fund. (B) The actuarial valuations shall be made by an actuary who is a member of the American Academy of Actuaries and who is employed by the review board. (C) The Executive Director of the Arkansas Fire and Police Pension Review Board shall state the actuarial findings in writing to the board of trustees and shall certify the appropriate action to be taken; (3)(A) A copy of the resolution adopted by the board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund outlining the proposed increase in member or beneficiary benefits is filed with the executive director, who shall determine that an actuarial valuation has been made in accordance with the provisions of this subchapter and that the actuarial valuation had determined that the proposed increase in benefits may be funded, over a period of time set forth in subdivision (b)(2)(A) of this section, based on available or defined revenue sources of the relief fund, in which event the executive director may approve the proposed increase to member beneficiary benefits under the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund. (B) The board of trustees of the firemen's relief and pension fund or policemen's pension and relief fund shall comply with the appropriate action as approved by the executive director; and (4)(A) A copy of the resolution adopted by the board of trustees, a copy of the actuarial valuation, and a copy of the action taken by the executive director are filed with the circuit clerk and the city clerk of the county and city in which the firemen's relief and pension fund or policemen's pension and relief fund is located. (B) All actions taken by the executive director shall be subject to review and acceptance by the Arkansas Fire and Police Pension Review Board. (c) If it is determined by the review board that a local pension plan is not complying with the provisions of law governing benefit increases, the executive director shall certify that noncompliance to the Secretary of the Department of Finance and Administration who shall withhold all moneys otherwise due the plan from the state until compliance is achieved.

Ark. Code Ann. § 24-11-103 Actuarial valuation.

(a) The cost of actuarial valuation made under the provisions of § 24-11-102 shall be paid by the board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund which proposes to increase member or beneficiary benefits under the fund. (b) The actuarial valuation shall include: (1) The current financial and actuarial status of the income and liabilities of the firemen's relief and pension fund or policemen's pension and relief fund; (2) A detailed statement of the proposed benefit increases; (3) A comparison reflecting that the level of contributions and other income under the pension and relief fund is sufficient to amortize the unfunded liabilities resulting from the benefit increase over a thirty-year period; and (4) A valuation determining whether, in the opinion of the actuary, the benefit increase, in conjunction with the addition of resources to reserves to increase actuarial soundness, will result in a deterioration of the actuarial soundness of the fund.

Ark. Code Ann. § 24-11-104 Rules.

The Department of Finance and Administration is authorized to promulgate such reasonable rules as are necessary to carry out the provisions of §§ 24-11-301 and 24-11-809 .

Ark. Code Ann. § 24-11-105 Survivor benefits for spouses who remarry.

The board of trustees of the local firemen's relief and pension fund or the board of trustees of the local policemen's pension and relief fund may elect to continue paying survivor benefits to spouses who remarry after they begin receiving benefits under the plan. However, before the election is effective, the election shall be approved by a majority vote of the governing body of the political subdivision, if any, after the plan meets the requirements for benefit increases under § 24-11-102 .

Ark. Code Ann. § 24-11-201 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Accountant” means an accountant who is authorized by Arkansas law to practice public accounting in Arkansas; (2) “Actuary” means an actuary: (A) Who is a member of the American Academy of Actuaries or who meets other criteria for qualification which may be established by the General Assembly; and (B) Who is experienced in retirement plan financing; and (3) “Plan” means any Arkansas municipal policemen's pension and relief fund or any Arkansas municipal firemen's relief and pension fund, including relief and pension funds of volunteer fire departments.

Ark. Code Ann. § 24-11-202 Noncompliance with subchapter.

(a) If it is determined that a plan is not complying with the provisions of this subchapter, the Executive Director of the Arkansas Fire and Police Pension Review Board shall certify the noncompliance to the Secretary of the Department of Finance and Administration, who shall withhold all moneys otherwise due the plan from the state until compliance is achieved. (b) All actions taken by the executive director shall be subject to review and acceptance by the Arkansas Fire and Police Pension Review Board.

Ark. Code Ann. § 24-11-204 General financial objective of plan.

(a) The general financial objective of each plan shall be to establish and receive contributions, expressed as percentages of active employee payroll or, in the case of volunteer fire department pension plans, expressed in dollar amounts, which will remain approximately level from year to year and which will not have to be increased for future generations of citizens. (b) More specifically, contributions received each year shall be sufficient both: (1) To fully cover the costs of benefit commitments being made to employees for their service being rendered in each year; and (2) To make a level payment which, if paid annually over a reasonable period of future years, will fully cover the unfunded costs of benefit commitments for service previously rendered.

Ark. Code Ann. § 24-11-205 Actuarial valuation.

(a)(1) The Executive Director of the Arkansas Fire and Police Pension Review Board shall cause an actuarial valuation of each plan to be made annually to determine how well the plan is meeting the objectives set forth in § 24-11-204. (2) The actuarial valuation shall be prepared by an actuary under the supervision of the executive director, who shall establish and implement procedures for securing actuarial services. (3) Valuations shall be prepared each year or as required by the Arkansas Fire and Police Pension Review Board for all or certain plans. (4) The executive director shall submit one (1) copy of the actuarial study to the local pension board and a summary of the findings to the Joint Committee on Public Retirement and Social Security Programs. (5) Expenses incurred for performing the actuarial valuations shall be paid from the revenues derived from the premium taxes levied on insurers for the support of fire and police retirement programs. (6) The method and amount of the payment shall be made under § 24-11-203. (b) The report of each actuarial valuation shall include at least the following: (1) A summary of the plan benefits evaluated; (2) The level normal cost of plan benefits, expressed as a percent of active employee payroll or, in the case of volunteer fire department pension plans, expressed in dollar amounts, computed in accordance with generally accepted actuarial funding methods which produce a normal cost rate at least as high as the entry age normal cost funding method; (3) The accrued liabilities of the plan, which shall be equal to the present value of all future benefits for present plan participants minus the present value of all future normal cost contributions for present plan participants; (4) The contribution required to amortize unfunded accrued liabilities over a period not to exceed thirty (30) years. Unfunded accrued liabilities shall be equal to the accrued liabilities minus the plan's accrued assets, which are the plan's cash and investments; (5) The employer contribution required to provide for the normal cost of the plan plus the amount required to amortize the unfunded accrued liability of the plan; (6)(A) Assumptions of future experiences that are appropriate for the fund in pursuing the general financial objective established by this subchapter. (B) Assumptions shall be made with respect to at least the following: (i) Investment return; (ii)(a) Pay increase assumptions. (b) If the pay increase assumption is a constant percentage for all active employee ages, the investment return rate percentage shall not exceed the pay increase percentage by more than two percent (2%) annually, compounded annually, and preferably not by more than one and one-half percent (1.5%). (c) If the pay increase assumptions are the total of a constant percent plus a changing percentage that decreases as age increases, the investment return rate percentage shall not exceed the constant percent of the pay increase assumptions by more than three percent (3%) annually, compounded annually, and preferably not by more than two percent (2%); (iii) Mortality; (iv) Withdrawal or turnover; (v) Disability; (vi) Retirement ages; and (vii)(a) Change in active employee group size. (b) If the entire employee group size is assumed to increase, the increase shall be assumed to occur within the five-year period after the valuation date, and to an eventual active employee group size no more than one hundred fifteen percent (115%) of present size; (7) Changes in each assumption since the last actuarial valuation shall be noted; and (8) The actuary shall certify that, in his or her opinion, the assumptions used for the valuation produce results which, in the aggregate, are reasonable.

Ark. Code Ann. § 24-11-206 Annual financial report.

(a) Each plan shall cause to be prepared an annual financial report following the close of each fiscal year. The financial report shall contain at least the following information: (1) A summary of the benefits available to covered persons; and (2) The accounting information specified in § 24-11-207. (b) The annual financial report shall be filed with the Executive Director of the Arkansas Fire and Police Pension Review Board.

Ark. Code Ann. § 24-11-207 Annual financial report — Duty of board of trustees.

(a)(1) The board of trustees of each plan shall annually cause a financial report to be prepared covering each plan fiscal year. (2) The annual financial report shall be prepared at the direction of the board of trustees and in accordance with reporting procedures established by the Arkansas Fire and Police Pension Review Board. (b) Each annual financial report shall include at least the following: (1)(A) The plan's revenues and expenditures during the year. (B) The revenues shall include at least the annual total for each of the following items: (i) Employee contributions; (ii) Employer contributions from the state; (iii) Employer contributions, other; (iv) Investment income: (a) Interest and dividends; (b) Gain or loss on sales; (c) Other (specify); and (d) The total of subdivisions (b)(1)(B)(i)-(iii) of this section; (v) The change in unrealized gain or loss from the previous year; (vi) Other (specify); and (vii) The total of subdivisions (b)(1)(B)(i)-(vi) of this section. (C) The expenditures shall include at least the annual total for each of the following items: (i) Refunds of employee contributions; (ii) Benefits paid; (iii) Administrative expenses; (iv) Other (specify); and (v) The total of subdivisions (b)(1)(C)(i)-(iv) of this section. (D) The difference between revenues and expenditures is the change in plan reserve assets for the year; and (2)(A) The plan reserve assets. (B) The reserve assets at year's end shall include at least the total for each of the following items: (i) Cash and bank checking accounts, noninterest-earning; (ii) Bank deposits, interest-earning; (iii) Savings and loan deposits, interest-earning; (iv) Other cash equivalents, maturing in one (1) year or less; (v) United States Government securities; (vi) Non-United States Government securities; (vii) Mortgages; (viii) Corporate bonds; (ix) Corporate common and preferred stock; (x) Other (specify); and (xi) The total of subdivisions (b)(2)(B)(i)-(x) of this section. (C) For actuarial valuation purposes, the assets will be valued on the method determined by the Arkansas Fire and Police Pension Review Board in consultation with its actuary. (c) The individual who prepares the annual financial reports and the chair of the board of trustees shall certify that the information contained in the report is an accurate statement of these activities and was prepared in accordance with the provisions of this subchapter and by using the same method of accounting used in previous years.

Ark. Code Ann. § 24-11-208 Administration of underfunded plans.

(a) The purpose of this section is to provide a method for the funding of benefits in certain underfunded plans. Some of the municipal fire and police pension funds established under §§ 14-52-106, 24-11-401 — 24-11-403, 24-11-405 — 24-11-413, 24-11-416, 24-11-417, 24-11-422, 24-11-423, 24-11-425, 24-11-428 — 24-11-430, 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, may run out of funds before all of the promised benefits have been paid to their members, retirants, and beneficiaries. (b)(1) Annually, in conjunction with the actuarial valuations required by § 24-11-205, the Arkansas Fire and Police Pension Review Board shall identify those plans that are projected to deplete their assets within ten (10) years after the valuation date. (2) A plan so identified shall be declared a projected insolvent fund. (c) The Arkansas Fire and Police Pension Review Board shall notify the board of trustees of each projected insolvent fund of its funded status and the options that are available to the fund to protect the benefits of its members, retirants, and beneficiaries.

Ark. Code Ann. § 24-11-210 Requirements for qualified plans under Internal Revenue Code.

(a) This section shall be considered a part of the plan of each firemen's relief and pension fund and policemen's pension and relief fund that is subject to this subchapter. Each plan is intended to qualify under the Internal Revenue Code, 26 U.S.C. § 401(a), and is for the exclusive benefit of its members, retired members, and their survivors. (b)(1) A member, retired member, or survivor of a member or retired member of a firemen's relief and pension fund or a policemen's pension and relief fund may not accrue a retirement pension, disability retirement allowance, death benefit allowance, Deferred Retirement Option Plan benefit, or any other benefit under the fund in excess of the benefit limits applicable to the fund under the Internal Revenue Code, 26 U.S.C. § 415. The Arkansas Fire and Police Pension Review Board shall reduce the amount of any benefit that exceeds those limits by the amount of the excess. (2) If total benefits under this fund and the benefits and contributions to which any member is entitled under any other qualified plans maintained by the employer that employs the member would otherwise exceed the applicable limits under the Internal Revenue Code, 26 U.S.C. § 415, the benefits the member would otherwise receive from the fund shall be reduced to the extent necessary to enable the benefits to comply with the Internal Revenue Code, 26 U.S.C. § 415, unless the employer has provided other rules that satisfy those requirements. (c) Any member or survivor who receives any distribution that is an eligible rollover distribution as defined by the Internal Revenue Code, 26 U.S.C. § 402(c)(4), is entitled to have that distribution transferred directly to another eligible retirement plan of the member's or survivor's choice on providing direction to the firemen's relief and pension fund or any policemen's pension and relief fund regarding that transfer in accordance with procedures established by the board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund. (d) The total salary taken into account for any purpose for any member or retired member who is an ineligible participant under any firemen's relief and pension fund or any policemen's pension and relief fund may not exceed one hundred fifty thousand dollars ($150,000) a year. This dollar limit shall be adjusted from time to time in accordance with guidelines provided by the United States Secretary of the Treasury. For purposes of this subsection, an “eligible participant” is a person who first became a member before 1996, and an “ineligible participant” is a member who is not an eligible participant. (e) In the event that a firemen's relief and pension fund or a policemen's pension and relief fund is terminated or partially terminated or employer contributions to the fund are discontinued completely, the rights of the members to their accrued benefits to the extent funded shall be nonforfeitable. (f)(1) Distributions of benefits shall begin no later than April 1 of the year following the calendar year during which the member attains the applicable age or terminates employment with the employer, whichever is later, and shall otherwise conform to the Internal Revenue Code, 26 U.S.C. § 401(a)(9). (2) In the case of a participant who attains seventy-two (72) years of age after December 31, 2022, and seventy-three (73) years of age before January 1, 2033, the applicable age is seventy-three (73) years of age. (3) In the case of a participant who attains seventy-four (74) years of age after December 31, 2032, the applicable age is seventy-five (75) years of age. (g) If the amount of any benefit is to be determined on the basis of actuarial assumptions that are not otherwise specifically set forth for that purpose in this subchapter, the actuarial assumptions to be used are those earnings and mortality assumptions being used on the date of the determination by the fund's actuary and approved by the board. The actuarial assumptions being used at any particular time shall be treated for all purposes as a part of the rules of the firemen's relief and pension fund or the policeman's pension and relief fund. The actuarial assumptions may be changed by the actuary if approved by the board, but a change in actuarial assumptions may not result in any decrease in benefits accrued as of the effective date of the change. (h)(1) Notwithstanding any other provision in this subchapter to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with the Internal Revenue Code, 26 U.S.C. § 414(u). (2) Subdivision (h)(1) of this section shall not preclude any person from receiving more generous treatment for military service pursuant to state law or the provisions of any firemen's relief and pension fund or any policemen's pension and relief fund if such treatment is not inconsistent with the tax qualification requirements.

Ark. Code Ann. § 24-11-212 Future Supplement Fund.

(a) A Future Supplement Fund is created for the purpose of providing cost-of-living assistance and minimum-benefit-amount assistance to policemen's pension and relief funds and firemen's relief and pension funds. (b) The Future Supplement Fund shall be administered by the Department of Finance and Administration. (c) Each year the Future Supplement Fund shall receive moneys from the premium tax allocation under § 24-11-214 based on the total of the amounts listed in subdivision (d)(1) of this section. (d)(1) Beginning on June 30, 2019, and continuing on June 30 of each following year, the Future Supplement Fund may distribute to local policemen's pension and relief funds and local firemen's relief and pension funds to pay retired members, beneficiaries, or members of a deferred retirement option plan the following: (A) Two thousand two hundred and forty dollars ($2,240) to each retired member, beneficiary, or member of the deferred retirement option plan of a policemen's pension and relief fund; (B) One thousand six hundred and twenty dollars ($1,620) to each retired member, beneficiary, or member of the deferred retirement option plan who was a paid member of a firemen's relief and pension fund; and (C) Three hundred dollars ($300) to each retired member or beneficiary who was a volunteer member of a firemen's relief and pension fund. (2) Beginning on June 30, 2020, and continuing each following year, the amounts listed in subdivision (d)(1) of this section shall be increased by a two-and-five-tenths-percent compound cost-of-living adjustment. (3) Beginning on June 30, 2020, and continuing each following year, the amount distributed to a paid member of the firemen's relief and pension fund shall be increased in seven (7) installments until the amount, beginning on June 30, 2026, is equal to the amount distributed to each member of the policemen's pension and relief fund. (e) At the time that there are no longer any members covered by local policemen's pension and relief funds and local firemen's relief and pension funds, any remainder of the Future Supplement Fund shall be transferred to the Arkansas Local Police and Fire Retirement System to be used solely by a covered employer to defray the covered employer's employer contribution costs to the system. (f) The department may use an amount allocated in previous years that has not been distributed for the Future Supplement Fund to: (1) Ensure the distribution of an amount listed in subdivision (d)(1) of this section; and (2) Help offset a reduction described in § 24-11-215.

Ark. Code Ann. § 24-11-213 Allocation of insurance premium tax — Apportionments.

(a)(1)(A) The premium taxes collected under § 24-11-301 shall be placed in a fund combined with the premium taxes collected pursuant to § 24-11-809. (B) The combined fund shall be entitled the “Firemen's and Police Officers' Pension and Relief Fund”. (C) The Firemen's and Police Officers' Pension and Relief Fund shall consist of a “fire portion” and a “police portion”. (2) The remaining revenues collected under §§ 23-60-102, 24-11-301, 24-11-809, 26-57-601 — 26-57-605, and 26-57-607 shall be distributed to the Firemen's and Police Officers' Pension and Relief Fund and to the State of Arkansas as general revenues. (3) Revenues distributed to the State of Arkansas as general revenues are subject to the allocations under § 24-11-215. (b) The allocation of funds between the Firemen's and Police Officers' Pension and Relief Fund and the General Revenue Fund Account under this section is subject to the following conditions: (1) The Department of Finance and Administration shall review annually the distribution of funds to each qualified city, town, or fire protection district made in the previous calendar year before disbursing funds to an area qualified under § 24-11-214; and (2) The department shall consider as part of the annual assessment of the allocation of the disbursement of funds under § 24-11-214: (A) The certification of a new city, town, or fire protection district for participation in the Firemen's and Police Officers' Pension and Relief Fund; and (B) A change in the legal description of a city, town, or fire protection district, which shall be reported to the department annually by December 14. (c)(1) The portion of revenues that may be distributed to the Firemen's and Police Officers' Pension and Relief Fund under this section shall be: (A) Forty percent (40%) of the total actuarial cost for a paid group covered by the Arkansas Local Police and Fire Retirement System; (B) One hundred percent (100%) of the actuarial cost for a volunteer group covered by the Arkansas Local Police and Fire Retirement System minus required employer contributions; and (C) Thirty percent (30%) of the consolidation and local pension and relief fund actuarial costs as provided under § 24-11-214. (2) The remaining portion of revenues shall be distributed to the General Revenue Fund Account of the State Apportionment Fund. (3) The portion of revenues distributed in accordance with subdivision (c)(1) of this section is subject to the requirements of § 24-11-215. (d) The amount of revenues allocated to the Firemen's and Police Officers' Pension and Relief Fund for the fire portion and the amount of revenues allocated to the Firemen's and Police Officers' Pension and Relief Fund for the police portion shall be kept separate.

Ark. Code Ann. § 24-11-215 Allocation of insurance premium tax — Special provisions.

(a) Revenues distributed to the State of Arkansas as general revenue are subject to the allocations in this section. (b)(1) All taxes that are levied on insurers that are allocated to general revenues under § 24-11-213 may be allocated to the Fire Protection Premium Tax Fund, underfunded plans under § 24-11-217, and then to general revenues. (2)(A) For the 1999-2000 state fiscal year, six hundred thousand dollars ($600,000) of the fire portion of funds transferred to general revenues under this section and § 24-11-213 shall be transferred to the Fire Protection Premium Tax Fund. (B) In all subsequent years fifty percent (50%) of the percentage increase in the amount allocated to general revenues under this section and § 24-11-213, using the dollar amount allocated in fiscal year 1999-2000 as the baseline, shall be transferred to the Fire Protection Premium Tax Fund in addition to the six hundred thousand dollars ($600,000) per year until the time that a cap of two million dollars ($2,000,000) annually is transferred to the Fire Protection Premium Tax Fund. (C) Thereafter, the annual transfer shall be set at two million dollars ($2,000,000). (c) After transfers are made to cover funds distributed under subsection (b) of this section and the portion of those premium taxes set aside for transfer to the State Police Retirement Fund under § 24-6-209(b), the Secretary of the Department of Finance and Administration is directed to make annual transfers from the police portion of the revenues to the Policemen's Pension Supplement Program Fund on or before July 1 each year as the amount needed to pay the expenses of and to make payments to the eligible retired police officers and survivors under the Arkansas Policemen's Pension Supplement Program for the coming year of the program. (d) The amounts under § 24-11-217 shall be reduced proportionately so that the remainder portion for general revenue does not fall below four million dollars ($4,000,000). (e)(1)(A) The factor applied to groups allocated under § 24-11-214(j) is forty percent (40%). (B) The factor applied to groups allocated under § 24-11-214(k) is thirty percent (30%). (2) The factors under subdivision (e)(1) of this section may be reduced proportionately to meet the following criteria: (A) The general revenue portion resulting from this subsection does not fall below four million dollars ($4,000,000); and (B) If the amount resulting from the application of the percentages under subdivision (e)(1) of this section, the amounts in subsections (b) and (c) of this section, and the amounts described in § 24-11-217 in total reduce the general revenue portion of the allocation below four million dollars ($4,000,000), the amounts resulting from the percentages in this subsection take precedence.

Ark. Code Ann. § 24-11-216 Minimum asset management standards.

(a) A local firemen's relief and pension fund or a local policemen's pension and relief fund shall meet the minimum asset management standards established under this section. (b)(1) A local firemen's relief and pension fund or a local policemen's pension and relief fund shall be deemed to have met the minimum asset management standards if: (A) The local firemen's relief and pension fund or the local policemen's pension and relief fund has a legally constituted board of trustees under §§ 24-11-405 and 24-11-801; (B) The board of trustees of the firemen's relief and pension fund or the board of trustees of the local policemen's pension and relief fund meets at least two (2) times annually; (C) The local firemen's relief and pension fund or the local policemen's pension and relief fund is actuarially sound as defined by the Arkansas Fire and Police Pension Review Board; (D)(i) The rate of return earned by the local firemen's relief and pension fund or the local policemen's pension and relief fund over the most recent three-year period is at least equal to the rate of return for one-year United States Treasury notes over the most recent three-year period. (ii) A higher standard for rate of return may be set by rule of the Arkansas Fire and Police Pension Review Board; and (E) The local firemen's relief and pension fund or the local policemen's pension and relief fund has been in compliance with this subchapter under § 24-11-202 in two (2) of the past three (3) years. (2) A local firemen's relief and pension fund or a local policemen's pension and relief fund shall meet the requirements of this section on or before December 31, 2008, and each year thereafter. (c) If the Arkansas Fire and Police Pension Review Board determines that a local firemen's relief and pension fund or a local policemen's pension and relief fund does not meet the minimum asset management standard under subsection (b) of this section, the Arkansas Fire and Police Pension Review Board shall: (1) Notify the local firemen's relief and pension fund or the local policemen's pension and relief fund and the sponsoring municipality of the local firemen's relief and pension fund or the local policemen's pension and relief fund of that fact and advise the local firemen's relief and pension fund or the local policemen's pension and relief fund of the steps necessary to comply with the standards; and (2) Require the local firemen's relief and pension fund or the local policemen's pension and relief fund to: (A) Establish a written investment policy that incorporates the rate of return established under subdivision (b)(1)(D) of this section and other requirements in accordance with rules promulgated by the Arkansas Fire and Police Pension Review Board; and (B) Obtain professional investment management in accordance with rules promulgated by the Arkansas Fire and Police Pension Review Board. (d) If the local firemen's relief and pension fund or the local policemen's pension and relief fund or its sponsoring municipality does not comply with subsection (c) of this section within six (6) months of the notification by the Arkansas Fire and Police Pension Review Board, then the local firemen's relief and pension fund or the local policemen's pension and relief fund shall develop a written plan of action in conjunction with the Arkansas Fire and Police Pension Review Board in accordance with rules promulgated by the Arkansas Fire and Police Pension Review Board. (e) The Arkansas Fire and Police Pension Review Board shall promulgate rules necessary to implement the provisions of this section.

Ark. Code Ann. § 24-11-217 Additional allocation for certain underfunded plans.

(a) An additional allocation for certain underfunded plans as described in this section is created. (b) The allocation shall be based on fifteen percent (15%) of the actuarial cost under § 24-11-214 and shall be available for certain policemen's pension and relief funds and firemen's relief and pension funds, including the portion of the actuarial cost for policemen's pension and relief funds and firemen's relief and pension funds that are administered by the Arkansas Local Police and Fire Retirement System. (c) The policemen's pension and relief funds and firemen's relief and pension funds shall qualify for the additional allocation after meeting the following criteria: (1) The policemen's pension and relief fund or the firemen's relief and pension fund is in compliance with all applicable laws and rules; (2) The policemen's pension and relief fund or the firemen's relief and pension fund shall receive employer contributions other than premium tax allocations that are at least eighty percent (80%) of the actuarial cost under § 24-11-214 during the calendar year before an allocation; and (3)(A) A firemen's relief and pension fund that provides benefits to volunteer members shall receive funding without meeting the employer contribution requirement described in subdivision (c)(2) of this section if the firemen's relief and pension fund is: (i) Less than fifty percent (50%) funded as of the most recent actuarial valuation; and (ii) Administered by the Arkansas Local Police and Fire Retirement System. (B) The funding under this subsection shall be eliminated to meet the criteria of § 24-11-215(e)(2)(A) notwithstanding the requirement of § 24-11-215(d). (d) An amount that is not distributed due to a policemen's pension and relief fund's or firemen's relief and pension fund's not meeting the requirements of subsection (c) of this section shall be retained and used to supplement the amounts needed for future years when the reductions under subsection (e) of this section apply. (e) The amounts provided under this allocation are subject to the limits under § 24-11-215. (f) Funds distributed to underfunded local pension programs through appropriation by the General Assembly for the purpose of payment of Firemen’s and Police Officers’ Pension and Relief Fund taxes for municipal fire and police relief and pension funds shall not be used to enhance benefits of the recipients.

Ark. Code Ann. § 24-11-301 Appropriation of tax revenues from foreign insurers.

(a)(1) Sixty-six and two-thirds percent (662/3%) of the total tax revenues derived from premium taxes paid to the State of Arkansas by alien and foreign insurance companies upon premiums collected by the insurance companies upon insurance contracts written on motor vehicles, the licensed addresses of which are qualified cities or towns wherein the motor vehicles are insured against the perils of physical damage or the owner or operators of the motor vehicles are insured against legal liability arising out of the use, ownership, or operation of the motor vehicles, is appropriated and set aside for the: (A) Use and benefit of all duly qualified police officers' pension and relief funds; (B) Administrative and actuarial expenses of the Arkansas Fire and Police Pension Review Board; and (C) Arkansas Policemen's Pension Supplement Program. (2) The premium taxes collected in this subsection shall be placed in a fund combined with the premium taxes collected pursuant to § 24-11-809. The combined fund shall be entitled the “Firemen's and Police Officers' Pension and Relief Fund”. (b) The amount of the tax revenues attributable to the fire peril of physical damage insurance shall not be included.

Ark. Code Ann. § 24-11-401 Applicability.

This subchapter shall not apply to any city that had a policemen's pension and relief fund on June 10, 1937.

Ark. Code Ann. § 24-11-402 Vote to effect subchapter.

(a) The provisions of this subchapter shall be suspended and inoperative in any city affected by the provisions of this subchapter until made available by a vote favorable thereto of the majority of qualified electors of the cities participating in any election on the question and held at a special election in accordance with § 7-11-201 et seq. for the purpose of voting on the question. (b) The election may be held in connection with the first general city election following the passage and approval of this subchapter, but the failure to submit at that city or other election shall not defeat the right of submission at any subsequent election. (c) Upon filing with the county board of election commissioners not later than seventy (70) days before the date of the election the petition signed by twenty (20) or more qualified electors of the city affected and praying that the question of policemen's pension be submitted, it shall be the duty of the county board of election commissioners to place the question upon the ballot. (d) In the event that for any reason the question of policemen's pension was not voted upon in the next general city election after June 10, 1937, the question may be submitted at a special election in accordance with § 7-11-201 et seq. held in the city as provided in this section. (e) The question on the ballot shall be as follows: “FOR Policemen's Pension AGAINST Policemen's Pension Click to view form.

Ark. Code Ann. § 24-11-403 Creation of fund — Tax levy.

(a) Annually, a tax not to exceed one (1) mill on the dollar of all taxable property in any cities or towns in this state is levied as a fund for pensioned and superannuated members of the police department, for the surviving spouses and minor children or dependent parents of deceased members of the police department, and to relieve the members in case of temporary disability. (b) This fund shall be known as the “policemen's pension and relief fund” and shall be collected as other taxes are collected and shall be turned over to the board of trustees of the policemen's pension and relief fund, as provided in this section. (c) In those cities which do not have a policemen's pension and relief fund but which cover their police officers under the Arkansas Local Police and Fire Retirement System, the tax, once approved by a majority of those voting on the question, shall be collected annually as other taxes are collected and shall be turned over to each city to be applied to each city's account in that system, in such manner and amounts as determined by the board of trustees of that system.

Ark. Code Ann. § 24-11-404 Tax levy for pensions in cities of first and second class.

(a)(1) After being once approved by a majority of those voting on the question at any general or special election in any city of the first class or city of the second class, a tax not to exceed one (1) mill on the dollar upon the assessed value of the real and personal property of the city shall be levied annually by the city for the purpose of paying police officers' retirement salaries and pensions, as well as pensions to the surviving spouses and minor children of deceased police officers and the surviving spouses and minor children of deceased retired police officers. (2) The levy shall be made by the city council or other governing body of the city on or before the time fixed by law for levying county taxes, and the city council or other governing body shall make out and certify to the county clerk the rate of taxation levied by the municipal corporation on the real and personal property within the city. (3) The amount so certified shall be placed upon the tax book by the county clerk of the county and collected in the same manner that state and county taxes are collected and shall be turned over to the board of trustees of the policemen's pension and relief fund of the city. (b)(1) In those cities that do not have a policemen's pension and relief fund but that cover their police officers under the Arkansas Local Police and Fire Retirement System, the tax shall also be allowed when approved by a majority of qualified electors of the cities participating in any election on the question and held at a special election in accordance with § 7-11-201 et seq. for the purpose of voting on the question. (2) The election may be held in connection with the first general city election following March 6, 1989, but the failure to submit at a city or other election shall not defeat the right of submission at any subsequent election. (3) Upon the filing with the county board of election commissioners not later than ninety (90) days before the date of the election requested in a petition signed by twenty (20) or more qualified electors of the city affected and praying that the question of a policemen's pension be submitted, it shall be the duty of the county board of election commissioners to call the election in accordance with § 7-11-201 et seq. (4) In the event that for any reason the question of the policemen's pension is not voted upon in the next general city election after March 6, 1989, the question may be submitted at a special election held in the city as provided in this subsection. (5) The question on the ballot shall be as follows: (6) The tax so levied shall not exceed one (1) mill on the dollar upon the assessed value of the real and personal property of the city or town. (c) Once so approved, the tax shall be levied and certified in the same manner as provided in this section and shall be collected and turned over to the city or town for the sole purpose of making payment for coverage of employees under the Arkansas Local Police and Fire Retirement System. (d) A vote on the question of the tax provided for in this section shall be had in the same manner that the Arkansas Constitution and laws of this state provide for the initiation of measures in municipalities. (e) The funds provided for in this section shall be supplemental and in addition to any funds provided for by any laws in effect at the time of passage of this section and shall become part of the policemen's pension and relief fund of the city and be administered by the board of trustees of the policemen's pension and relief fund for the same class of beneficiaries and in the same manner as prescribed by law. (f) In those cities that cover their police officers under the Arkansas Local Police and Fire Retirement System, the funds shall be applied to each city's account in that system, in such manner and amounts as determined by the Board of Trustees of the Arkansas Local Police and Fire Retirement System, if: (1) The city does not have a policemen's pension and relief fund; or (2) The city has consolidated administration of its policemen's pension and relief fund with the Arkansas Local Police and Fire Retirement System, even if there are no longer any members or beneficiaries remaining under the city's policemen's pension and relief fund. “FOR Policemen's Pension [ ] AGAINST Policemen's Pension .....[ ]”.

Ark. Code Ann. § 24-11-405 Board of trustees.

(a) The board of trustees of the policemen's pension and relief fund shall consist of seven (7) members as follows: (1) The chief executive officer of the city, who shall be chair of the board; (2) The city treasurer, who shall be treasurer of the fund; (3)(A)(i) Five (5) active or retired members of the pension fund. (ii)(a) The active pension fund members shall elect the active members by secret written ballot in May of each year, with the member or members to be chosen in alternating years. (b) The retired member or members shall be chosen in May of each year by a method to be determined by the board, with the member or members to be chosen in alternating years. (c) All member trustees shall serve two-year terms. (d) In the event of a vacancy in a board position, the board of trustees shall appoint a replacement to serve the remainder of the unexpired term. (iii) If there are no active members of the pension fund, all five (5) employee members shall be elected by the retired membership of the pension fund and the surviving spouses of deceased members currently receiving benefits. (B) The board shall select one (1) of the police members as secretary of the board to serve for a period of two (2) years or until his or her successor is elected and qualified. (C) However, if no retirant is available to serve on the board, all five (5) employee positions shall be held by active members of the pension fund and shall be elected by secret ballot by the active members of the pension fund for two-year terms as provided in subdivision (a)(3)(A) of this section. (D) The board shall have the power to make all rules needful for its guidance to implement the provisions regarding board composition; and (4) The number of active members or retired members to serve on the board shall be determined by the proportionate number of active members to retired members as follows: (A) When the number of active members equals seventy-five percent (75%) of the total of retired members and active members, the board shall be composed of four (4) active members and one (1) retired member; (B) When the number of active members equals fifty percent (50%) of the total of retired members and active members, the board shall be composed of three (3) active members and two (2) retired members; and (C) When the number of retired members equals seventy-five percent (75%) of the total of retired members and active members, the board shall be composed of one (1) active member and four (4) retired members. (b) The police officer members of the board shall serve for a period of two (2) years or until their successors are elected and qualified. (c) The board shall have the absolute control and management of the funds provided for in this subchapter and of all moneys donated, paid, or assessed for the relief or pension of disabled, superannuated, and retired members of the police department, their surviving spouses and minor children, or dependent parents solely dependent upon members for their support. (d)(1) The board shall make all necessary rules for its government and the discharge of its duties and shall hear and decide all applications for pension and relief under this subchapter. (2) All decisions upon applications shall be final and conclusive and not subject to review or reversal except by the board. (3) The board shall keep a record of all its meetings and proceedings. (e)(1) Each member of the board of trustees of the policemen's pension and relief fund who receives gifts or other compensation that in total exceeds one hundred dollars ($100), including, but not limited to, trips and meals, from current or potential investment advisors or managers of the policemen's pension and relief fund shall prepare an annual statement listing: (A) Each item received; (B) The estimated value of each item; and (C) From whom each item was received. (2)(A) Each member of the board of trustees of the policemen's pension and relief fund shall attest by written affidavit that the member's annual statement is true and current to the best of his or her knowledge. (B)(i) An annual statement and affidavit from each member of the board of trustees of the policemen's pension and relief fund shall be collected by the board of trustees of the policemen's pension and relief fund or the municipal treasurer. (ii) One (1) copy of the statement and affidavit shall be filed with the Secretary of State. (iii) A second copy of each statement and affidavit shall be retained on file by the board of trustees of the policemen's pension and relief fund or the municipal treasurer and shall be available for review by any plan participant. (C)(i) As part of the annual report to the Arkansas Fire and Police Pension Review Board, the chair of each board of trustees of the policemen's pension and relief fund for each plan shall certify that the statements and affidavits as described in this subsection have been completed and appropriately filed. (ii) Each plan's annual report shall not be considered complete without this certification.

Ark. Code Ann. § 24-11-406 Administration of small funds by Arkansas Local Police and Fire Retirement System.

(a)(1) In those local police pension and relief funds that cover fewer than five (5) members, a local board of trustees may no longer exist, and the fund shall be designated as inactive by the employer. (2) As used in this section, “member” includes an active member or a retired member of the fund described in subdivision (a)(1) of this section but does not include beneficiaries. (b) Administrative responsibility for the fund shall be assigned to the Arkansas Local Police and Fire Retirement System, as allowed by §§ 24-10-301 and 24-10-302 and as provided in the following procedure: (1)(A) The actuary under contract to the system shall compute the retirement reserve for vested and active members and for eligible beneficiaries of the inactive fund. After receiving the report of the actuary, the employer shall transfer the computed reserve to the system to be held in an account designated as the retirement reserve for the inactive fund and from which the system shall pay eligible beneficiaries. (B) The retirement reserve and any additional employer contributions shall include such amounts as are necessary to provide administrative expenses for the system, but such expenses shall not exceed a total of one-half of one percent (0.5%) of active member payroll, if any, plus one percent (1%) of annual reserve assets; (2) Any excess assets of the fund remaining after the retirement reserve is created shall be transferred to an account designated by the employer, to be used solely for the purpose of making payments to the system for employee coverage administered under the system and for no other purpose; (3) If a former member of the local pension fund returns to service in which the employee would have again become a member of the local fund, the past service credit may be purchased by the employer for the employee under the system, and the purchase costs shall be amortized in the same manner as other service credit purchases are amortized under the system; (4)(A) Retired members and beneficiaries of any inactive fund under administration of the system that was actuarially sound before being designated inactive shall be eligible for annual redetermination of benefits as defined in § 24-10-612. (B) Should the law mandate an increase in benefits to retired members or their beneficiaries, the increases shall be payable from the retirement reserve of the inactive fund. (C) No prorating of benefits shall be allowed in inactive funds under the administration of the system. (D) If the retirement reserve of an inactive fund shall become inadequate to pay full benefits to eligible recipients, the system shall require of the employer, and the employer shall remit, such actuarially computed amounts as are necessary to pay full benefits to current and future eligible recipients; (5)(A) Once a fund becomes inactive and a retirement reserve is created as required by this section, the employer may continue to collect such millages, fines, fees, state insurance tax turnback, and other revenues as allowed by law for the support of police retirement programs. (B) The revenues shall be deposited locally in an account designated by the employer solely for making payments to the system and shall be used for no other purpose; and (6)(A) All employer contributions for inactive funds shall be made in such amounts, and in such manner, form, and frequency, as the Board of Trustees of the Arkansas Local Police and Fire Retirement System shall require. (B) The pension records of inactive funds, and other materials and reports as may be required by the board to administer the inactive funds, shall be provided to the Arkansas Local Police and Fire Retirement System in such manner as the board shall require.

Ark. Code Ann. § 24-11-407 List of retired police officers.

(a) There shall be kept in the office of the board of trustees by the secretary a book known as the list of retired police officers. (b) This book shall give the full and complete history and record of action of the board of trustees in retiring any and all persons under this subchapter. (c) The record shall give the name, date of joining the department, date of retirement and reason thereof, and the date and finding of the physician of each examination made of disabled members of the department retired under the provisions of this subchapter.

Ark. Code Ann. § 24-11-408 Treasurer as custodian of fund.

(a) The treasurer shall be the custodian of the pension fund and shall keep his or her books and accounts concerning the funds in such manner as may be prescribed by the board. (b) The books and accounts shall be subject to the inspection of any member of the board. (c)(1) Within ten (10) days after his or her selection, the treasurer shall execute a bond to the board of trustees with good and sufficient securities, in such penal sum as the board shall direct, conditioned for the faithful performance of the duties of his or her office and that, on the expiration or retirement of his or her term of office, he or she shall surrender and deliver to his or her successor all unexpended moneys and all property which may have come into his or her hands as treasurer of the fund. (2) The bond shall be filed in the office of the board of trustees, and, in case of a breach of the bond, suit may be brought on the bond in the name of the board or in the name of any person or persons injured by the breach.

Ark. Code Ann. § 24-11-409 Deposit of moneys.

The board shall deposit all moneys in the bank selected as the fiscal agent of the city in which it is located, but only if the moneys draw the same rate of interest as the city receives on its deposits. Otherwise, the board shall make its own selection of the bank.

Ark. Code Ann. § 24-11-410 Investment.

(a) The board of trustees of the policemen's pension and relief fund shall have the power to draw sums from its treasury, only upon warrants signed by the chair of the board of trustees of the policemen's pension and relief fund and countersigned by the policemen's pension and relief fund, to invest in the name of the board in interest-bearing bonds of the United States, of the State of Arkansas, or of the city in which the board is located, in a local government joint investment trust pursuant to the Local Government Joint Investment Trust Act, § 14-79-101 et seq., in the Arkansas Local Police and Fire Retirement System, or in savings and loan associations duly established and authorized to do business in this state. (b) Except as provided in subsection (c) of this section, all securities shall be deposited with the treasurer of the board of trustees of the policemen's pension and relief fund and shall be subject to the order of the board. (c)(1) In those policemen's pension and relief funds in which assets exceed one hundred thousand dollars ($100,000), the board may employ: (A) An investment advisor as defined in § 24-10-402(a)(2)(A)(ii) to invest the assets, subject to the terms, conditions, limitations, and restrictions imposed by law upon the Arkansas Local Police and Fire Retirement System, as provided by § 24-10-401 et seq.; and (B) A trustee or custodian to hold the assets. (2) Investments shall not be limited to interest-bearing bonds. (3) The total amount of fees paid for investment advisors, investment advisory services, investment educational services, trustee services, custodial and administrative services, and investment management services when the managers are required to perform security trades on a best execution basis shall be: (A) Limited to no more than three percent (3%) annually of the first five hundred thousand dollars ($500,000) of plan assets, plus no more than two percent (2%) annually of the next five hundred thousand dollars ($500,000) of plan assets, plus no more than one percent (1%) annually of plan assets over one million dollars ($1,000,000); and (B) Clearly stated, in total, on all monthly, quarterly, and annual statements prepared for the board. (d) A decision on whether to invest, not invest, or withdraw from investment moneys provided for the policemen's pension and relief fund shall not be based on a consideration that the location of the investment, fund, company, or any other type of investment vehicle is in the State of Israel.

Ark. Code Ann. § 24-11-411 Payments.

(a) Except as provided in subsection (c) of this section, all moneys paid from the pension and relief fund shall be paid by the treasurer only upon warrants signed by the chair and countersigned by the secretary thereof. (b) Except as provided in subsection (c) of this section, no warrant shall be drawn except by order of the board, and interest accruing from the fund while on deposit or otherwise shall constitute a part of the fund. (c) In a policemen's pension and relief fund in which the board has employed a trustee or custodian under § 24-11-410(c) to hold the assets, the trustee or custodian may pay benefits to persons and beneficiaries entitled to benefits under the fund as directed by the board.

Ark. Code Ann. § 24-11-412 Report on condition of fund.

The board of trustees shall report to the council or city commission the condition of the pension fund on the first regular meeting in January of each year.

Ark. Code Ann. § 24-11-413 Moneys added to fund — Contributions.

(a) There shall be added to the policemen's pension and relief fund the following moneys: (1) All forfeitures and fines imposed upon any member of the police department by way of discipline; (2) All money given or donated to the fund; (3) All money deducted from the salary of any member of the police department on account of absence or loss of time; (4) All rewards paid for any purpose; (5) Ten percent (10%) of all fines and forfeitures, not including court costs, collected by the county or city official, agency, or department designated pursuant to § 16-13-709 as primarily responsible for the collection of fines assessed in the district courts of this state for violation of ordinances or state law that pursuant to law would be deposited into the city general fund and are not designated by law as payable to the county or state agencies or entities; and (6)(A) Six percent (6%) of the monthly salary of each member of the department, to be deducted each month by the city and immediately paid to the board of trustees of the policemen's pension and relief fund. (B) However, the monthly deduction shall be four percent (4%) for police officers contributing to Social Security unless increased, but not to exceed six percent (6%), by the majority vote of the contributing members of a police department covered by Social Security. (b) All cities and towns in which a policemen’s pension and relief fund is established shall contribute to the fund an amount not less than six percent (6%) of the police officers’ salary. (c) The contributions by cities and towns shall not exceed the amount contributed by the police officers, except where authorized by appropriation of the city’s or town’s governing body. (d) A policemen's pension and relief fund that has assigned administrative responsibility for the fund to the Arkansas Local Police and Fire Retirement System under § 24-11-406 continues to be eligible to collect and deposit the amounts under subsection (a) of this section as contributions.

Ark. Code Ann. § 24-11-415 Proceeds derived from sale of confiscated goods.

(a)(1)(A) In all cities and towns, all goods confiscated by a police officer of the city, by the sheriff, or by an officer of the Department of Arkansas State Police within the city and that are no longer needed as evidence shall be sold at auction or Internet auction. (B) The auction or Internet auction shall be held at least annually or more often if the city determines appropriate. (C) The proceeds derived from the sale of all confiscated goods shall be deposited into the city's policemen's pension and relief fund. (2) Subdivision (a)(1) of this section shall not supersede any existing provisions of law governing the disposition of confiscated goods. (b)(1) Until such time as the policemen's pension and relief fund is actuarially sound as determined by the actuary under contract with the Arkansas Fire and Police Pension Review Board, in all cities and towns all moneys confiscated by a police officer of the city, by the sheriff, or by an officer of the Department of Arkansas State Police within the city shall be deposited into the city's policemen's pension and relief fund. (2) Subdivision (b)(1) of this section shall not supersede any existing provisions of law governing the disposition of confiscated moneys. (3) At the time that the policemen's pension and relief fund is actuarially sound, all moneys received under this subsection shall be retained by the city. (c) A policemen's pension and relief fund that has assigned administrative responsibility for the fund to the Arkansas Local Police and Fire Retirement System under § 24-11-406 continues to be eligible to collect and deposit these amounts as contributions until the unfunded liability as a result of the consolidation has been fully amortized.

Ark. Code Ann. § 24-11-416 Proration where fund insufficient.

If at any time there should not be sufficient money in the fund to pay each person a full amount to which he or she may be entitled, the beneficiaries shall be paid by prorating the fund available among them.

Ark. Code Ann. § 24-11-417 Subjection of fund to legal process.

(a) No portion of the policemen's pension and relief fund shall at any time be subject to seizure or levy under any process whatsoever for the payment of any claim or debt held against any disabled member or the surviving spouse, dependent parent, or child of a deceased or retired member. (b) The fund shall be securely held and distributed for the purpose of pensioning the persons mentioned in this subchapter and for no other person or purpose whatsoever.

Ark. Code Ann. § 24-11-418 Former military service credit purchase.

(a) Any active member of a policemen's pension and relief fund may purchase credited service in the pension fund equivalent to a period not to exceed five (5) years for service rendered by the member while on active duty in the United States Armed Forces before the member's employment covered by the pension fund, if the member: (1) Received an honorable discharge from the armed forces; (2) Has at least twenty (20) years of actual service in the pension fund; and (3)(A) Contributes to the pension fund an amount that is the actuarial equivalent of the value of the credited service to be purchased. (B) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the Arkansas Fire and Police Pension Review Board or for a pension fund under administration of the Arkansas Local Police and Fire Retirement System, the actuary for that system. (b) The board of trustees of the policemen's pension and relief fund shall make the final determination as to the: (1) Length of purchased service credit; (2) Amount of regular interest to be charged; and (3) Manner in which payment is made to the pension fund. (c) Service credit purchased under this section shall be used to determine the member's total credited service under the pension fund but shall not be used to determine his or her final average pay under the pension fund.

Ark. Code Ann. § 24-11-421 Credited service — Restoration.

(a)(1) In the event a former member again becomes an employee of the same police department where previously employed, the police officer shall again become a member of the system, and the credited service forfeited by him or her shall be restored to his or her credit, but only if he or she returns to the fund the amount refunded to him or her plus interest from the date of withdrawal to the date of repayment. (2) The interest rate to be paid shall be equal to the fund's average investment rate of return as indicated in the last three (3) annual accountant's reports, but in no case less than six percent (6%). (3) The repayment shall be made according to such rules as the board shall adopt. (b) Any police officer who has become a member of the Arkansas Local Police and Fire Retirement System shall remain a member of that system.

Ark. Code Ann. § 24-11-422 Benefits — Voluntary retirement.

(a)(1)(A) Any member of a police department who has performed faithful service for a period of at least twenty (20) years shall be eligible for voluntary retirement. (B) Upon written application by the member, the member shall be entitled to receive from the fund a monthly pension equal to one-half (½) the actual salary based upon his or her highest salary year during his or her time of service. (2)(A)(i) The term “salary” means regular salary only and does not include, except as otherwise provided in subdivision (a)(2)(A)(ii) of this section, overtime pay, payments for unused accrued sick or annual leave, or the cash value of any nonrecurring or unusual remuneration. (ii)(a) The term “salary” may include the payments to a police officer for unused accrued sick leave not to exceed ninety (90) work days recorded on the records of the city or town as of the officer's date of retirement, provided the municipality agrees by ordinance to make adequate contributions to the fund to cover the additional costs for the benefits from the increased salary and the fund is judged by an actuarial determination to be actuarially sound. (b) The board of trustees of the local fund shall determine the actuarial costs of the payments for the unused accrued sick leave to the fund. (B) The overtime exclusion shall not apply to a benefit computed at any time on a salary year prior to June 28, 1985. (b)(1)(A) Any police officer who has more than twenty (20) years of service at the time of retirement shall be entitled to receive the sum of twenty dollars ($20.00) per month in addition to his or her regular retirement pay for each full year worked over and above twenty (20) years. (B) In no instance shall he or she receive more than one hundred dollars ($100) per month in addition to his or her regular benefit. (2) The increase in benefit levels provided in this subsection for service beyond twenty (20) years shall apply only to those police officers who retire on or after January 1, 1987. (3) If a deceased officer receives the benefit provided under this subsection at the time of his or her death, the benefit shall be included in the amount paid to a surviving spouse or surviving child under § 24-11-425(a)(1)(A)(ii). (c)(1) Any member of a department of a city which is divided by a street state line from an incorporated city or town in an adjoining state who is eligible for voluntary retirement and who shall continue to work for the department may receive the sum of twenty dollars ($20.00) per month upon retirement in addition to his or her regular monthly retirement pay for each continuous year that he or she shall work over and above his or her twenty (20) years. (2) In no instance shall he or she receive more than three hundred dollars ($300) per month in addition to his or her regular retirement pay.

Ark. Code Ann. § 24-11-423 Benefits — Disability retirement.

(a)(1)(A) If any member of a police department becomes physically or mentally permanently disabled and this fact is certified by a physician named by the local board of trustees, he or she shall be entitled to retire and receive a pension as provided herein. A member of the police department shall not be retired for disability for natural causes unless he or she has served at least five (5) years. (B) If the disabling injury or disease occurred while not actually performing work in gainful employment for the police department, the monthly benefit shall be equal to the benefit paid to normal service retirants. (C)(i) If, however, a police officer is injured in the line of duty, the monthly disability benefit shall either be equal to sixty-five percent (65%) of the salary attached to the rank held by the member of the police department or shall be equal to the benefit paid to normal service retirants, whichever is greater. (ii) For purposes of this section, “injured in the line of duty” means to have sustained a disabling injury or disease that occurs while the member of the police department is conducting official police department operations or training to become a police officer. (iii) The local board of trustees shall determine whether the disability occurred in the line of duty and may require any medical evidence, official reports, expert testimony, or other information to be supplied by the applicant in addition to the required physician's examination. The additional benefits provided in this subdivision (a)(1)(C) shall be effective for all qualifying applications first received by the local board of trustees on or after January 1, 1987. (2) For purposes of computing all benefits under this section, the term “salary” means regular salary only and shall not include overtime pay, payments for unused accrued sick leave or annual leave, or the cash value of any nonrecurring or unusual remuneration. (b) A police officer retired for reasons of disability who has more than twenty (20) years of service shall also be entitled to receive any supplementary benefit for which he or she would otherwise be qualified under this section and § 24-11-422. (c)(1) If a member of the police department is retired because of any disability and, if he or she shall have recovered from the disability, and this fact is certified by a physician, it shall be the duty of the local board of trustees to stop the payment of the pension and to place the member back in service in the police department. (2) The time of the member's retirement shall be considered as continuous service in the police department. (d)(1) In addition to the examination under subsection (c) of this section, the local board of trustees may require the member of the police department to have an examination by a physician named by the local board of trustees no more often than one (1) time every six (6) months, and, if the physician determines that the member of the police department has recovered from the disability, it shall be the duty of the local board of trustees to stop the payment of the pension and to place the member back in service in the police department. (2) The time of the member's retirement shall be considered as continuous service in the police department. (3) The local board of trustees shall pay for the cost of the additional physician's examination.

Ark. Code Ann. § 24-11-424 Benefits — Retirant receiving less than one-half salary.

Retired police officers who are eligible to receive benefits from a policemen's pension and relief fund shall receive from the policemen's pension and relief fund a minimum monthly benefit of no less than three hundred fifty dollars ($350).

Ark. Code Ann. § 24-11-425 Benefits — Death of active or retired member.

(a)(1)(A) If any active police officer or any retired member dies from any cause, leaving a surviving spouse, then the board of trustees shall direct a monthly pension during the surviving spouse's life in an amount equal to the lesser of the: (i) Pension attached to the rank of the deceased police officer at the time of his or her death; or (ii) Monthly pension amount being paid to the deceased police officer at the time of his or her death. (B) In no event shall the benefit of the surviving spouse be less than three hundred fifty dollars ($350) per month. (2) If any active police officer or any retired member dies from any cause and leaves no surviving spouse but has a surviving child or children under the age of eighteen (18) who have not completed high school, then the board shall direct a monthly pension benefit to the surviving child or children under the age of eighteen (18) in an aggregate amount to the children equal to the pension attached to the rank of the deceased police officer at the time of his or her death, but in no event shall the benefits to the surviving children be less than three hundred fifty dollars ($350) per month. However, if any child enrolls in an institution of higher learning after completing high school, then the payment shall continue as long as the child is a full-time student but not beyond the child's twenty-third birthday unless he or she is a dependent child who is physically or mentally permanently disabled. (3)(A) The board may continue a benefit for life for a dependent child who is physically or mentally permanently disabled and this fact is certified to the board by a physician. (B) The board may first require that a second evaluation be performed by another physician to be named by the board, and they shall review the child's disabled status from time to time, but at least every five (5) years. (4)(A)(i) Beginning July 1, 2007, if a retired member dies from any cause and leaves a surviving former spouse who was receiving a portion of the retired member's retirement benefit and also leaves a surviving spouse entitled to benefits under subdivision (a)(1) of this section, then until the surviving former spouse or surviving spouse dies or remarries, the surviving former spouse shall continue to receive the same benefit he or she was receiving when the retired member died. (ii) Upon the death or remarriage of the surviving former spouse, the monthly pension of the surviving spouse shall be increased to the pension attached to the rank of the deceased police officer at the time of his or her death. (B) A surviving former spouse shall not be entitled to any benefit increases approved by the board for its members. (b) If the police officer leaves no surviving spouse or children but does leave a dependent parent, the board shall pay the dependent parent the sum of one hundred twenty-five dollars ($125) monthly as long as the dependent parent remains unmarried. (c) The minimum benefit provided in this section shall be paid to all qualified survivors regardless of whether they were already receiving benefits or become eligible for the first time after June 17, 1981. (d)(1) If any police officer marries after retirement, that surviving spouse may be entitled to a pension under this subchapter if he or she has been married to the police officer for a period of at least five (5) years, if the board of trustees for the fund decides to extend this benefit for its members and if the pension fund will be actuarially sound as determined by the actuary for the Arkansas Fire and Police Pension Review Board after this benefit increase is extended to members. (2) If any police officer who retired after June 12, 1964, and before June 20, 1964, marries after retirement, that surviving spouse shall be entitled to a pension under this subchapter if he or she has been married to the police officer for a period of at least two (2) years and if the actuarial soundness of the fund will not be adversely affected. (e)(1) In addition to the monthly pension provided in subsections (a) and (b) of this section, the board shall order and direct the payment of the sum of one hundred twenty-five dollars ($125) per month to each child under eighteen (18) years of age. However, the payment shall continue to each child over eighteen (18) years of age as long as the child is a full-time student but not beyond the child's twenty-third birthday unless he or she is a dependent child who is physically or mentally permanently disabled. (2) The board may continue a benefit for life for a dependent child who is physically or mentally permanently disabled and this fact is certified to the board by a physician on the board. The board may first require that a second evaluation be performed by another physician to be named by the board, and it shall review the child's disabled status from time to time, but at least every five (5) years. (f)(1) The sum total of the pension to be paid the surviving spouse or the qualifying child of the deceased police officer shall not exceed one-half (½) of the salary attached to the rank the police officer held at the time of his or her death or the monthly pension amount being paid to the deceased police officer at the time of his or death, whichever is greater. (2) However, the limit on the sum total amount under subdivision (f)(1) of this section may be exceeded through benefit increases authorized under § 24-11-102. (g)(1) If any surviving spouse, surviving former spouse, or child shall marry, he or she shall thereafter receive no further pension under this subchapter except that if he or she is a surviving spouse of a police officer who is killed while in the official performance of his or her duties, then any such surviving spouse's or former spouse's benefits shall continue. (2) Benefits may be restored to a surviving spouse whose benefits had been terminated prior to or after August 1, 1997, upon his or her application to and approval by the board. (h)(1) When entitled to a pension as provided by this subchapter, a surviving spouse, child, or dependent parent shall make application to the board through the secretary of the board on a form to be provided by the board. (2) Accompanying the application shall be proof of the marriage of the decedent to the surviving spouse claimant. (3) Proof of the birth of children shall be shown by the baptismal or board of health certificates. (4) All applications and proof shall be retained in the custody of the board, and due notice of that action shall be registered by the secretary in his or her office. (i) Every member of the department must file with the secretary the names of those persons to whom death benefits are to be paid and the relationship of the beneficiary to the decedent.

Ark. Code Ann. § 24-11-426 Optional vesting rights policy.

(a)(1) Upon an actuarial determination that the policemen's pension and relief fund will remain actuarially sound, the board of trustees of a local policemen's pension and relief fund of cities of the first class shall have the option to establish a vesting rights policy in its policemen's pension and relief fund. (2) The required actuarial valuation shall be made by the actuary employed by the Arkansas Fire and Police Pension Review Board, who shall then report the actuarial findings in writing to the board of trustees. (3) All costs for the actuarial valuation shall be borne by the local funds. (b)(1) If approved, the vesting policy shall provide that in the event a member with ten (10) years or more of credited service in the system ceases to be employed as a member of the department and does not withdraw his or her accumulated employee contributions to the system, the member shall be entitled to receive a pension upon reaching fifty-five (55) years of age and making application to the board of trustees. (2) The pensions shall be computed at two and one-half percent (2.5%) of salary at the time of separation from the department, multiplied by the number of years of credited service, not to exceed twenty (20) years. (c) Any member may elect to withdraw his or her accumulated contributions to the system at the time of separation from the department and to waive any pension rights the member may have earned in the system. (d) This section shall not affect any other section of the policemen's pension and relief funds of cities of the first class.

Ark. Code Ann. § 24-11-428 Return of salary deductions.

In the event of resignation or discharge from the police department of any member thereof, all moneys deducted from his or her salary shall be immediately returned to him or her without interest.

Ark. Code Ann. § 24-11-430 Death benefit.

(a) When an active or retired police officer dies, the board of trustees shall pay from the fund a sum of not less than one hundred dollars ($100) nor more than six thousand five hundred dollars ($6,500) to pay the death benefits of the decedent to: (1) The surviving spouse of the police officer; (2) The police officer's estate if there is no surviving spouse; or (3)(A) A beneficiary chosen by the police officer if before death the police officer executed a beneficiary form. (B) The board of trustees shall provide a beneficiary form to active and retired police officers. (b) Each board of trustees shall adopt a policy establishing the amount to be paid for death benefits under this section, and the amount shall be awarded uniformly to all eligible persons. (c) The board of trustees may change the amount of death benefits payable under this section, but in that instance the amount shall be uniformly distributed likewise.

Ark. Code Ann. § 24-11-432 Additional benefits for certain officers hired prior to January 1, 1983.

(a) Beginning July 1, 1987, in addition to the monthly pension benefits as set forth in §§ 24-11-401 — 24-11-403, 24-11-405 — 24-11-413, 24-11-416, 24-11-417, 24-11-422, 24-11-423, 24-11-425, 24-11-428 — 24-11-430, 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, for those police officers hired prior to January 1, 1983, and who continue to work beyond their twenty-fifth year, the member shall receive at age sixty (60) and thereafter a benefit on the amount equal to one and one-fourth percent (1.25%) of final salary attached to the rank which the member may have held in the department preceding the date of retirement multiplied by the number of years of service in excess of twenty-five (25) years up to a maximum total benefit of seventy-five percent (75%) of final salary, provided that the maximum seventy-five percent (75%) of final salary shall no longer apply to benefits payable on April 30, 1993, and thereafter to persons retiring henceforth and to those persons who retired on or after July 1, 1987. (b) This benefit shall be payable to the member only and not to surviving spouses or dependent children. (c)(1) For the purposes of this section, “salary” means recurring pays which are received for a regularly scheduled work week and shall not include, except as otherwise provided in this subsection, payments for unused accrued sick leave or annual leave or the cash value of any nonrecurring or unusual remunerations. (2) The term “salary” may include the payments to those police officers under this section for unused accrued sick leave not to exceed ninety (90) work days recorded on the records of the city or town as of the officer's date of retirement, provided the municipality agrees by ordinance to make adequate contributions to the fund to cover the additional costs for the benefits from the increased salary and the fund is judged by an actuarial determination to be actuarially sound. The board of trustees shall determine the actuarial costs of the payments for the unused accrued sick leave to the fund.

Ark. Code Ann. § 24-11-433 Police pension funds — Partial disability pensions.

(a)(1) If a member of a police department of a city of the first class with a population in excess of one hundred seventy thousand (170,000) persons as determined by the 1990 population totals as published by the United States Bureau of the Census becomes physically or mentally permanently partially disabled and this fact is certified by a physician named by the local board of trustees, the member of the police department shall be entitled to retire and receive a pension as provided in this section. (2) A member of the police department shall not be retired for disability for natural causes unless he or she has served at least five (5) years. (b)(1) The physician's certification shall state whether the disability is total or partial. (2) In the event such disability is partial, the physician shall state the extent of such partial disability, apportioned to the body as a whole, in percentage terms. (3)(A) If the disability injury or disease occurred while not actually performing work in gainful employment for the police department and the physician certifies that such disability is total, the monthly benefit shall be equal to the benefit paid to normal service retirants. (B) If the physician certifies that such disability is partial, the monthly benefits shall be equal to the benefit paid to normal service retirants multiplied by the percentage the member is disabled, as certified by the physician. (4)(A) If, however, a police officer is injured in the line of duty and the physician certifies that such disability is total, the monthly disability benefit shall either be equal to sixty-five percent (65%) of the salary attached to the rank held by the member in the police department or shall be equal to the benefit paid to normal service retirants, whichever is greater. (B) If the physician certifies that such disability is partial, the monthly benefit shall be equal to sixty-five percent (65%) of the salary attached to the rank held by the member in the police department or shall be equal to the benefit paid to normal service retirants, whichever is greater, multiplied by the percentage the member is disabled, as certified by the physician. (c) The local board of trustees shall determine whether the disability occurred in the line of duty and may require any medical evidence, official reports, expert testimony, or other information to be supplied by the police officer in addition to the required physician's examination. (d) The additional benefits provided in this section shall be effective for all qualifying applications first received by the local board of trustees on or after January 1, 1987. (e) For purposes of this section, “injured in the line of duty” means to have sustained a disabling injury or disease while the member of the police department is conducting official police department operations or training to become a police officer.

Ark. Code Ann. § 24-11-434 Deferred retirement option plan.

(a)(1) In lieu of terminating employment and accepting a service retirement pension under this subchapter, a police officer who is a member of a policemen's pension and relief fund who has not less than twenty (20) years of credited service and who is eligible to receive a service retirement pension may elect to participate in the Arkansas Police Officers' Deferred Retirement Option Plan and defer the receipt of benefits in accordance with the provisions of this section, provided that the board of trustees of the local policemen's pension and relief fund approves the participation in the plan. (2) For purposes of this section, credited service includes service credit recognized pursuant to this subchapter. (b)(1) The duration of participation in the plan for active police officers shall not exceed five (5) years. (2) The five-year limit may be extended if: (A) The extension does not cause the limit to exceed ten (10) years; (B) The extension applies to all active members and all members on the plan; (C) The extension is approved by a majority of votes of the board of trustees of the policemen's pension and relief fund or of the Arkansas Local Police and Fire Retirement System for funds whose administrative responsibility has been assigned to the system as provided in § 24-11-406(b); (D) The interest credited after the first five (5) years on the plan shall be two (2) percentage points below the rate of return of the investment portfolio of the fund and shall not be determined under subdivision (e)(2) of this section, but in no event shall the interest rate credited be less than zero percent (0%); and (E) The extension is approved by a majority vote of the governing body of the sponsoring municipality. (c)(1) Except under subdivisions (c)(2) and (3) of this section, at the conclusion of a member's participation in the plan, the member shall terminate employment with all participating municipalities as a police officer and shall start receiving the member's accrued monthly retirement benefit from the policemen's pension and relief fund. (2) If a member is at the conclusion of a member's participation in the plan, the member may continue employment by a municipality under the following conditions: (A) The municipality makes continued employment available to all similarly situated members; (B) The availability of continued employment is approved by a majority vote of the governing body of the sponsoring municipality after receiving approval for an increase in benefits under § 24-11-102; (C) The monthly benefit that is credited to the member's plan account is discontinued and the member shall not receive a monthly benefit until the member actually ceases employment; (D) The interest rate credited to the plan account is the same paid as under subdivision (e)(2) of this section, except that the minimum rate is zero percent (0%); (E) The employer's matching contribution of six percent (6%) shall cease, but all other employer contributions shall continue and be credited to the policemen's pension and relief fund; and (F) The employee contributions of six percent (6%) shall discontinue. (3)(A) A member may enter into employment with a participating municipality so long as the member has a break of service from his or her previous employment of at least thirty (30) days as a police officer, begins employment in a law enforcement position, and becomes a member of the Arkansas Local Police and Fire Retirement System. (B)(i) Subdivision (c)(3)(A) of this section applies to a member of a local policemen's pension and relief fund after the break in service regardless of the original date of hire of the member by a municipality that participates in the Arkansas Local Police and Fire Retirement System. (ii) Retroactive application applies only if the member and employer contributions have been made under this chapter. (d)(1) When a member begins participation in the plan, the contribution of the police officer and the employer contribution shall continue to be paid. (2)(A) In a municipality having a population of over twenty thousand (20,000) persons, municipal matching contributions for employees who elect the plan shall be credited equally to the policemen's pension and relief fund and to the plan, or at the option of the local pension and relief fund board of trustees, credited in the manner provided in subdivision (d)(2)(B) of this section. (B) In a municipality having a population of twenty thousand (20,000) persons or less, municipal matching contributions for employees who elect the plan shall be credited in full to the policemen's pension and relief fund, and the contribution of the employee shall be credited to the member's plan account. (3) The monthly retirement benefits that would have been payable had the member elected to cease employment and receive service retirement and pension supplement payments made by the Arkansas Policemen's Pension Supplement Program shall be paid into the plan account. (e)(1) The member's monthly retirement benefit shall not change unless the plan receives a benefit increase. (2)(A) A member who participates in this plan shall earn interest at a rate of two (2) percentage points below the rate of return of the investment portfolio of the policemen's pension and relief fund as certified by the actuary under contract with the Arkansas Fire and Police Pension Review Board in accordance with generally accepted actuarial practices and § 24-11-207, but no less than the actuarial assumed interest rate as certified by the actuary. (B) The interest shall be credited to the individual account balance of the member on an annual basis. (f)(1) At the option of the participant, a participant in the plan shall receive a lump-sum payment from the account equal to the payments to the account or a true annuity based upon the account of the participant or may elect any other method of payment if approved by the board of trustees. (2) If approved by a majority vote of the governing body of the sponsoring municipality and the board of trustees, a participant in the deferred retirement option plan may defer receiving payment of the participant's account and continue with the funds deposited into the plan. (3)(A) Interest credited to the continuing deposit of funds in the plan under subdivision (f)(2) of this section shall be calculated in the same manner as interest under subdivision (e)(2) of this section. (B) However, the minimum interest rate shall not be less than zero percent (0%). (4)(A) The payment of funds accumulated while participating in the deferred retirement option plan may be deferred only one (1) time. (B)(i) These funds shall be distributed or annuitized by April 1 of the year following the calendar year in which a member attains the applicable age. (ii) In the case of a participant who attains seventy-two (72) years of age after December 31, 2022, and seventy-three (73) years of age before January 1, 2033, the applicable age is seventy-three (73) years of age. (iii) In the case of a participant who attains seventy-four (74) years of age after December 31, 2032, the applicable age is seventy-five (75) years of age. (g) If the participant dies during the period of participation in the plan, a lump-sum payment equal to the account balance of the participant shall be paid. (h) A participant in the plan shall not receive any benefits under the plan unless he or she participates in the plan for a minimum of one (1) year, absent death or disability. (i) The Arkansas Fire and Police Pension Review Board may promulgate rules to make the plan under this section comply with the requirements of this section and with the applicable portions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2003. (j) Although the police officer may remain employed by the participating municipality, any member who opts to participate in the plan shall be considered to be retired for all retirement purposes, including, but not limited to, benefit increase purposes and the extension of benefits to the spouses of deceased members.

Ark. Code Ann. § 24-11-436 Military service.

(a) If a member of a policemen's pension and relief fund who while an employee enters the United States Armed Forces during any period of compulsory or voluntary military service, the service shall be credited under this subchapter. (b)(1) In any case of doubt as to the period of armed service to be so credited a member under this section, the board of trustees of the pension fund shall determine the period. (2) Except for service credited under subsection (d) of this section, a member of a policemen's pension and relief fund shall not be credited with a total of more than five (5) years of armed service. (c) During the period of armed service and until the member's return as an employee, his or her contributions to the pension fund shall be suspended, and any balance remaining to the member's credit in the pension fund shall be accumulated at regular interest. (d)(1)(A) Under the requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, in effect October 13, 1996, a member who leaves covered employment to serve in the uniformed services of the United States after giving notice to the employer and who returns to employment shall be treated as not having incurred a break in service with the employer. (B) The employer shall certify to the pension fund that reemployment was in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, as in effect October 13, 1996. (2) Under this subsection, the uniformed services of the United States are limited to the United States Armed Forces, the Army National Guard and Air National Guard when engaged in active duty for training, state active duty, inactive duty training, or full-time National Guard duty, the United States Commissioned Corps of the Public Health Service, and any other category of persons designated by the President of the United States in time of war or national emergency. (3) The cumulative length of the absence from a position of employment with the employer by reason of service in the uniformed services for which service credit shall be given shall not exceed five (5) years. (4) A member of a policemen's pension and relief fund whose uniformed service is honorably terminated and who reports for reemployment under this subsection within the time provided in the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, shall be entitled to accrue benefits for the time he or she served in the uniformed services by paying the employee contributions required by § 24-11-413, if any, within the time provided in the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, and by repaying any amount he or she may have previously withdrawn from the pension fund, with interest. (5)(A) An employer reemploying a member of a policemen's pension and relief fund under this subsection shall pay to the pension fund the employer contributions due for the time he or she served in the uniformed services as required under § 24-11-413. (B) However, if a member of a policemen's pension and relief fund does not pay the employee contributions due, then no employer contributions are due. (6) For the purposes of determining the employee and employer contributions due, the compensation for a member of a policemen's pension and relief fund during the period of service in the uniformed services shall be computed at: (A) The rate he or she would have received if the member of a policemen's pension and relief fund had not served in the uniformed services; or (B) The average compensation level for the member of a policemen's pension and relief fund during the twelve-month period, or shorter if applicable, immediately preceding the service. (7) Unless both employee and employer contributions are paid, the member of a policemen's pension and relief fund shall not be entitled to any accrued benefits for the time served in the uniformed services. (8)(A) If a member dies on or after January 1, 2007, while performing qualified military service under the Uniformed Services Employment and Reemployment Rights Act, Pub. L. No. 103-353, he or she shall be treated as though he or she resumed covered employment on the day before the day of death. (B) For a member of a policemen's pension and relief fund who had not attained a vested status in the pension fund, sufficient service credit shall accrue to permit him or her to become vested. (C) For a member of a policemen's pension and relief fund who had attained a vested status, additional service credit accrual shall not occur. (D) In all cases, the eligible benefit awarded by the pension fund under this section shall be a nonduty death benefit.

Ark. Code Ann. § 24-11-437 Credited service — Purchase of former law enforcement service.

(a) If the local board of trustees for a policemen's pension and relief fund decides to extend this benefit for its members and if the pension fund will be actuarially sound as determined by the actuary for the Arkansas Fire and Police Pension Review Board after this benefit increase is extended to members, any member of the policemen's pension and relief fund as established by this subchapter shall be entitled to purchase credited service in the system, not to exceed five (5) years, for service rendered by the member as a law enforcement officer in this state prior to the member's employment covered by the policemen's pension and relief fund. (b) The member may purchase the credited service if: (1) The member is an active member with at least twenty (20) years' actual service in the policemen's pension and relief fund and contributes to the pension fund an amount that is the actuarial equivalent of the value of the credited service to be purchased; and (2) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the Arkansas Fire and Police Pension Review Board, or for a pension fund under administration of the Arkansas Local Police and Fire Retirement System by the actuary for that system. (c) Service that is or will be eligible for benefit payment from another plan shall not be eligible for purchase under the pension fund. (d) The board of trustees of the pension fund shall make the final determination as to the: (1) Length of purchased service credit; (2) Amount of regular interest to be charged; and (3) Manner in which payment is made to the pension fund. (e) Service credit purchased under this section shall be used to determine the member's total credited service under the pension fund but shall not be used to determine his or her final average pay under the pension fund.

Ark. Code Ann. § 24-11-438 Police-related service.

(a) Any member of a policemen's pension and relief fund who has police-related service with the municipal government shall be entitled to purchase credited service in the system equivalent to the amount of employment service he or she has with the municipal police department in a position as police-related employment service up to a maximum of three (3) years of credited service, provided that the member contributes to the system an amount the Arkansas Fire and Police Pension Review Board determines would be actuarially equivalent to the value of the service purchased. (b) The board shall have the final power to determine the value of the service purchased. (c) Service credit purchased under this section may be used to determine the member's total credited service for the amount upon retirement and shall not be used to determine his or her final average pay for service under the system. (d) As used in this section, “police-related service” means service with a municipality that has police officers covered under a policemen's pension and relief fund in a job or in a paid position within a covered police department or fire department where the person performs duties that are related to the delivery of police and law enforcement services, including service such as a police department radio dispatcher or other similar service.

Ark. Code Ann. § 24-11-801 Board of trustees — Members.

(a) The board of trustees of every firemen's relief and pension fund established in a city, incorporated town, or duly qualified fire protection district under this subchapter shall be composed of the following: (1) The chief executive, who shall serve as chair of the board; (2) The city or district clerk or recorder, who shall serve as secretary of the board; (3) The fire chief or, if the fire chief is not a member of the fund, the highest ranking member of the fire department who is a member and who is willing to serve, or, if there is no active member of the fire department, a retired member of the fire department; and (4)(A) Four (4) active or retired members of the pension fund. (B) As used in this section, “member” includes an active or retired member of the fund but does not include a beneficiary of the fund. (b) The board thus created shall provide for the disbursement of the firemen's relief and pension fund and shall designate its beneficiaries as directed in this act. (c) The active and retired members shall elect the member trustees by secret written ballot in May of each year by a method to be determined by the board. (d) All member trustees shall serve two-year terms without compensation. (e) The board may make all rules needful for its guidance to implement the provisions regarding board composition. (f) The chief executive in the cities, incorporated towns, or fire protection districts shall be the chair, the city or town clerk or recorder or clerk of the fire protection district shall be ex officio secretary, and the city, town, or fire protection district treasurer shall be ex officio treasurer of the board of trustees during his or her respective term of office as the official of the city, incorporated town, or fire protection district. (g) The secretary and treasurer of each board of trustees shall report annually, at the same time annual reports are required as clerk, recorder, or treasurer, the precise status of the firemen's relief and pension fund, showing all receipts and disbursements on account with a full and complete list of all beneficiaries of the fund and the amount paid each beneficiary. (h)(1) Each member of the board of trustees of the firemen's relief and pension fund who receives gifts or other compensation that in total exceeds one hundred dollars ($100), including, but not limited to, trips and meals, from current or potential investment advisors or managers of the firemen's relief and pension fund shall prepare an annual statement listing: (A) Each item received; (B) The estimated value of each item; and (C) From whom each item was received. (2)(A) Each member of the board of trustees of the firemen's relief and pension fund shall attest by written affidavit that the member's annual statement is true and current to the best of his or her knowledge. (B)(i) An annual statement and affidavit from each board member shall be collected by the board of trustees of the firemen's relief and pension fund or the municipal treasurer. (ii) One (1) copy of the statement and affidavit shall be filed with the Secretary of State. (iii) A second copy of each statement and affidavit shall be retained on file by the board of trustees of the firemen's relief and pension fund or the municipal treasurer and shall be available for review by any plan participant. (C)(i) As part of the annual report to the Arkansas Fire and Police Pension Review Board, the chair of the board of trustees of the firemen's relief and pension fund for each plan shall certify that the statements and affidavits as described in this subsection have been completed and appropriately filed. (ii) Each plan's annual report shall not be considered complete without this certification.

Ark. Code Ann. § 24-11-802 Board of trustees — Proceedings.

(a) Meetings of the board of trustees may be called by the chair or by a majority of the members in a manner established by the board. (b) The board shall issue orders signed by the chair and secretary to the persons entitled thereto for the amount of money ordered paid to the persons from the fund by the board. The order shall state for what purpose the payment is made. (c) The board shall keep a record of its proceedings. The record shall be a public record. (d)(1) At each meeting, the board shall send to the treasurer of the city or town a written or printed list of all persons entitled to payment from the fund provided for in this subchapter. (2) This list shall state the amount of the payment and for what granted and shall be certified to and signed by the chair and secretary of the board and attested under oath. (e)(1) The treasurer of the city or town shall thereupon enter a copy of the list upon the book to be kept for that purpose. The book shall be known as “The Firemen's Relief and Pension Fund Book”. (2) The board shall direct payment of the amounts named therein to the persons entitled thereto out of those funds. (f) A majority of all the members of the board shall constitute a quorum and shall have the power to transact business. (g)(1) Money belonging to the fund shall not be disbursed for any purpose without a vote of a majority of all the members of the board of trustees, which shall be taken by the “yeas” and “nays”. (2) The vote of each member so voting shall be entered upon the proceedings of the board.

Ark. Code Ann. § 24-11-803 Board of trustees — Powers.

(a) In addition to the other powers granted in this subchapter, the board of trustees of a firemen's relief and pension fund shall have the power to: (1)(A) Compel witnesses to attend and testify before it upon all matters connected with the operation of this act and in the same manner as provided by law for the taking of testimony before a notary public. (B) The chair or any member of the board may administer oaths to the witnesses; (2)(A) Provide for the payment from the fund of all its necessary expenses. (B) However, no compensation shall be paid to any member of the board for any duties performed under this act; and (3) Make all rules needful for compliance with the provisions of this act. (b) The board shall have the power to accept and disburse according to the provisions of this act any and all sums which may come into its hands through appropriation, gift, or devise. (c) Members of the board of trustees of the firemen's relief and pension fund of incorporated cities and towns in Arkansas shall have the power, in their discretion, to expend moneys from the firemen's relief and pension fund for the purpose of paying premiums and purchasing group insurance covering the members of the fire departments of the cities and towns against accidental injury or death occurring within the line of duty of the firefighters.

Ark. Code Ann. § 24-11-804 Administration of small funds by Arkansas Local Police and Fire Retirement System.

(a)(1) In those local firemen's relief and pension funds that cover fewer than five (5) members, a local board of trustees may no longer exist, and the fund shall be designated as inactive by the employer. (2) As used in this section, “member” includes an active member or a retired member of the fund described in subdivision (a)(1) of this section but does not include beneficiaries. (b) Administrative responsibility for the fund shall be assigned to the Arkansas Local Police and Fire Retirement System as allowed by §§ 24-10-301 and 24-10-302 and as provided in the following procedure: (1)(A) The actuary under contract to the system shall compute the retirement reserve for vested and active members and for eligible beneficiaries of the inactive fund. After receiving the report of the actuary, the employer shall transfer the computed reserve to the system to be held in an account designed as the retirement reserve for the inactive fund and from which the system shall pay eligible beneficiaries. (B) The retirement reserve and any additional employer contributions shall include such amounts as are necessary to provide administrative expenses for the system, but such expenses shall not exceed a total of one-half of one percent (0.5%) of active member payroll plus one percent (1%) of annual reserve assets. (2) Any excess assets of the fund remaining after the retirement reserve is created shall be transferred to an account designated by the employer, to be used solely for the purpose of making payments to the system for employee coverage administered under the system, and for no other purpose. (3)(A) If a former member of the local pension fund returns to service in which the employee would have again become a member of the local fund, the past service credit may be purchased by the employer for the employee under the system and the purchase costs shall be amortized in the same manner as other service credit purchases are amortized under the system. (B) Retired members and beneficiaries of any inactive fund under administration of the system that was actuarially sound before being designated inactive shall be eligible for annual redetermination of benefits as defined in § 24-10-612. (C) Should the law mandate an increase in benefits to retired members or their beneficiaries, the increases shall be payable from the retirement reserve of the inactive fund. (D) No prorating of benefits shall be allowed in inactive funds under the administration of the system. (E) If the retirement reserve of an inactive fund shall become inadequate to pay full benefits to eligible recipients or if active members are still covered by the fund, the system shall require of the employer and the employer shall remit such actuarially computed amounts as are necessary to pay full benefits to current and future recipients. (4)(A) Once a fund becomes inactive and a retirement reserve is created as required by this section, the employer may continue to collect such millages, state insurance tax turnback, and other revenues allowed by law for the support of firefighter retirement programs. (B) The revenues shall be deposited locally into an account designated by the employer solely for making payments to the system for employee coverage administered under the system, and for no other purpose. (5)(A) All employer contributions for inactive funds shall be made in such amounts and in such manner, form, and frequency as the Board of Trustees of the Arkansas Local Police and Fire Retirement System shall require. (B) The pension records of inactive funds and other materials and reports as may be required by the board to administer the inactive funds shall be provided to the system in such manner as the board shall require.

Ark. Code Ann. § 24-11-805 Investment.

(a)(1) All moneys provided for the firemen's relief and pension fund by this act shall be paid over to and received by the treasurer of the city or town for the sole use and benefit of the firemen's relief and pension fund, and the firemen's relief and pension fund shall be used for no other purpose. (2) The additional duties imposed upon the treasurer shall be and comprise additional duties for which he or she shall be liable under his or her oath and bond as the city or town treasurer. (b) The board of trustees of the firemen's relief and pension fund shall have the power with the consent of a majority of the firefighters at the time employed, expressed in writing and filed with the city clerk, to authorize the treasurer to draw sums from its treasury to invest in the name of the board in interest-bearing bonds of the United States, of the State of Arkansas, or of the city where the board is located, in a local government joint investment trust pursuant to the Local Government Joint Investment Trust Act, § 14-79-101 et seq., the Arkansas Local Police and Fire Retirement System, in certificates of deposit or time deposits in banks duly established and authorized to do business in this state, or in savings and loan associations duly established and authorized to do business in this state. (c) Except as provided in subsection (d) of this section, all securities shall be deposited with the treasurer of the board and shall be subject to the orders of the board. (d)(1) However, in those firemen's relief and pension funds in which assets exceed one hundred thousand dollars ($100,000), the board of trustees may employ: (A) An investment advisor as defined in § 24-10-402(a)(2)(A)(ii) to invest the assets, subject to the terms, conditions, limitations, and restrictions imposed by law upon the system, as provided by § 24-10-401 et seq.; and (B) A trustee or custodian to hold the assets. (2) Investments shall not be limited to interest-bearing bonds, certificates of deposit, and time deposits. (3) The total amount of fees paid for investment advisors, investment advisory services, investment educational services, trustee services, custodial and administrative services, and investment management services when the managers are required to perform security trades on a best execution basis shall be: (A) Limited to no more than three percent (3%) annually of the first five hundred thousand dollars ($500,000) of plan assets, plus no more than two percent (2%) annually of the next five hundred thousand dollars ($500,000) of plan assets, plus no more than one percent (1%) annually of plan assets over one million dollars ($1,000,000); and (B) Clearly stated, in total, on all monthly, quarterly, and annual statements prepared for the board. (e) A decision on whether to invest, not invest, or withdraw from investment moneys provided for the firemen's relief and pension fund shall not be based on a consideration that the location of the investment, fund, company, or any other type of investment vehicle is in the State of Israel.

Ark. Code Ann. § 24-11-806 Payments generally.

(a) Except as provided in subsection (b) of this section, payments provided for in this act shall be made monthly upon proper vouchers and in such manner as provided for in other disbursements of the city or town. (b) In a firemen's relief and pension fund in which the board of trustees of the firemen's relief and pension fund has employed a trustee or custodian under § 24-11-805(d) to hold the assets, the trustee or custodian may pay benefits to persons and beneficiaries entitled to benefits under the fund as directed by the board.

Ark. Code Ann. § 24-11-807 Minimum payments generally — Proration upon insufficiency of fund — Supplemental pensions.

(a) For volunteer firefighters, in no case shall the payment to any retired member be less than one hundred dollars ($100) per month, and the payment shall be made in accordance with the justice and equity of each case as determined by the board of trustees of the firemen's relief and pension fund. (b) Should the fund provided for in this subchapter be insufficient to make full payment of the amount of pensions to all persons entitled thereto, then the fund shall be prorated among those entitled by the proper authorities as may be deemed just and equitable. (c) The payment provided for in this section shall not be made until after the payment in full of all claims or demands against the fund arising or accruing under the provisions of § 24-11-819(c). (d) For the purpose of determining how to prorate benefits, the proration shall be considered just and equitable if: (1) The board pays the full minimum benefit each month to all eligible beneficiaries until assets in the fund are depleted for the fiscal year, at which time all payments shall cease until revenues are received for the next fiscal year; or (2) The board decreases all payments to all eligible beneficiaries by an equal proportion for the fiscal year and does not allow the assets in the fund to become fully depleted. (e) In cities having a population of twenty thousand (20,000) or more, if the board of the firemen's relief and pension fund shall determine that the balances in the fund together with estimated income thereto will provide an amount sufficient to pay additional minimum pensions to volunteer firefighters entitled to the pensions. Then, by adoption of a resolution by majority vote of the full membership of the board, the board may provide for the payment of supplemental, additional minimum pensions in an amount not to exceed twenty-five dollars ($25.00) per month per retired volunteer firefighter, or such lesser amount as the board shall determine can be paid from fund balances and estimated income without jeopardizing or reducing other benefits payable from the fund.

Ark. Code Ann. § 24-11-809 Apportionment of insurance premium tax generally.

(a)(1) There is apportioned and set aside for the use and benefit of duly constituted firemen's relief and pension funds and for the administrative and actuarial expenses of the Arkansas Fire and Police Pension Review Board the annual taxes of two and one-half percent (2.5%) on all foreign and alien premiums collected by all property and casualty insurance companies, corporations, or associations incorporated under the laws of any state or nation and doing business in the State of Arkansas after all cancellations and dividends to policyholders are deducted as provided by §§ 23-60-102, 24-11-809, 26-57-601 — 26-57-605, and 26-57-607 upon real and personal property insured against the perils of fire and extended coverage, tornado, windstorm, cyclone, and hail, except upon growing crops, and located in or at cities, towns, and fire protection districts in the State of Arkansas coming within the provisions of this act. (2) The premium taxes collected in this subsection shall be placed in a fund combined with the premium taxes collected pursuant to § 24-11-301. The combined fund shall be entitled the “Firemen's and Police Officers' Pension and Relief Fund”. (b) In the case of multiperil policies with a single premium for both the property and casualty coverages, the portion of the taxable premium shall be as follows: (1) In the case of commercial multiperil policies, seventy percent (70%); (2) In the case of homeowners' policies, forty-five percent (45%); (3) In the case of automobile physical damage policies, nine percent (9%); and (4) In the case of inland marine policies, fifteen percent (15%). (c) All additional revenues collected as a result of the levy of the insurance premium tax on domestic insurers, other than for premiums or copayments for life, disability, legal, wet marine, and foreign trade, and health maintenance organization insurance or contracts shall be special revenues and shall be apportioned and remitted to the Firemen's and Police Officers' Pension and Relief Fund.

Ark. Code Ann. § 24-11-811 Appropriations of insurance premium tax — Planned community property owners' associations.

(a) As used in this section, “planned community property owners' association” means an incorporated nonprofit organization operating under recorded land agreements through which each lot owner in a planned unit or other described land area is automatically a member and each lot is automatically subject to a charge for a proportionate share of the expenses for the organization's activities, such as maintaining common properties, and which acts as the directing or governing body of a real estate development developed by a single developer, containing not fewer than five thousand (5,000) acres, which has been or is being developed under a comprehensive plan for a community containing streets and other public services, parks, and other recreational facilities for common use by the residents thereof; which has been subdivided into sufficient lots for residential use to accommodate a projected population of no fewer than one thousand (1,000) persons; which is not incorporated as a city or town; and for which a statement of record has been filed with the Secretary of Housing and Urban Development under the Interstate Land Sales Full Disclosure Act, 15 U.S.C. § 1701 et seq. (b) Any planned community property owners' association with a firemen's relief and pension fund established prior to July 1, 1981, under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, shall participate in the distribution of insurance premium tax revenues to the same extent as fire departments and fire protection districts under §§ 24-11-809, 24-11-810, 24-10-401 — 24-10-409, and any other laws providing for the distribution of insurance premium tax moneys to fire departments or fire protection districts.

Ark. Code Ann. § 24-11-812 Tax levy by city council.

(a)(1) After being once approved by a majority of those voting on the question at any general or special election of any city of the first class or city of the second class, a tax not to exceed one (1) mill on the dollar upon the assessed value of the real and personal property in the city shall be levied annually by the city for the purpose of paying firefighters' retirement salaries and pensions and pensions to the surviving spouses and minor children of deceased firefighters and the surviving spouses and minor children of deceased retired firefighters. (2) The levy shall be made by the city council or other governing body of the city on or before the time fixed by law for levying county taxes, and the city council or other governing body shall make out and certify to the county clerk the rate of taxation levied by the municipal corporation on the real and personal property within the city. (3) The amount so certified shall be placed upon the tax book by the county clerk of the county and collected in the same manner that state and county taxes are collected. This amount shall be turned over to the board of trustees of the firemen's relief and pension fund of the city, as created under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820. (b)(1) However, in those cities that do not have a firemen's relief and pension fund but that cover their firefighters under the Arkansas Local Police and Fire Retirement System, the levy shall also be allowed when approved by a majority of the qualified electors of the cities or towns participating in a special election for the purpose of voting on the question. (2) The election may be held in connection with the first general city election following the passage and approval of this subsection, but the failure to submit at the city or other election shall not defeat the right of submission at any subsequent election. (3) Upon the filing with the county board of election commissioners not later than ninety (90) days before the date of the election requested in a petition signed by twenty (20) or more qualified electors of the city or town affected, stating the amount of tax to be voted on, not to exceed one (1) mill on the dollar, and praying that the question of a firemen's pension be submitted, it shall be the duty of the county board of election commissioners to call the election in accordance with § 7-11-201 et seq. (4) In the event that for any reason the question of a firemen's pension is not voted upon in the next general city election after the passage and approval of this subsection, the question may be submitted at any other general or special election held in the city or town as provided in this subsection. (5) The ballot shall state the amount of tax being voted on and the purpose thereof, and the question on the ballot shall be as follows: (c) Once so approved, the levy shall be certified in the same manner as provided in this section and shall be collected and turned over to the city for the sole purpose of payment for coverage of employees under the Arkansas Local Police and Fire Retirement System. (d) A vote on the question of the tax provided for in this section shall be had in the same manner that the Arkansas Constitution and laws of this state provide for the initiation of measures in municipalities. (e) The funds provided for in this section shall be supplemental to and in addition to any funds provided for by any laws in effect at the time of the passage of this section, shall become part of the firemen's relief and pension fund of the city, as created under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, and shall be administered by the board of trustees created by those sections, for the same class of beneficiaries and in the same manner as the funds provided for in §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, since it is the specific intention of this section not to repeal §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, or any amendments thereto, but rather to provide additional money for the firemen's relief and pension fund. (f) In those cities that cover their firefighters under the Arkansas Local Police and Fire Retirement System, the funds shall be applied to each city's account in that system in such manner and amounts as determined by the Board of Trustees of the Arkansas Local Police and Fire Retirement System, if: (1) The city does not have a firemen's relief and pension fund; or (2) The city has consolidated administration of its firemen's relief and pension fund with the Arkansas Local Police and Fire Retirement System, even if there are no longer any members or beneficiaries remaining under the city's firemen's relief and pension fund. “FOR Firemen's Pension AGAINST Firemen's Pension

Ark. Code Ann. § 24-11-813 Clerk's report to pension review board.

It is made the duty of the clerk of each city, town, or fire improvement district in which an organized firemen's relief and pension fund is maintained to file following each fiscal year a report with the Arkansas Fire and Police Pension Review Board of the number of firefighters with their names, dates of appointment, dates of retirement, birth dates, amounts of pensions paid, and other information as required by the Arkansas Fire and Police Pension Review Board.

Ark. Code Ann. § 24-11-814 Subjection of fund to legal process.

(a) Either before or after its order of disbursement by the board to disabled members of the fire department, or to the surviving spouse, guardian of any minor children, or dependent parent of the deceased or retired member of the department, no portion of the firemen's relief and pension fund shall be held, seized, taken, subjected to, detained, or levied on by virtue of any attachment, garnishment, execution, injunction, or other order or decree, or any process or proceeding whatever, issued out of or by any court of this state, for the payment or satisfaction, in whole or part, of any debt, damages, claim, demand, or judgment against a member, his or her surviving spouse, the guardian of his or her minor children, or the dependent parent of any deceased member, nor shall the fund or any claim thereto be directly or indirectly assigned or transferred, and any attempt to so assign or transfer shall be void. (b) The fund shall be sacredly held, kept, and distributed for the purpose of pensioning the persons named in this act and for no other purpose whatever.

Ark. Code Ann. § 24-11-815 Appeals.

Any person possessing the qualifications required under this act who deems himself or herself aggrieved by the decision of any board of trustees of the firemen's relief and pension fund, either in rejecting his or her claim or in the amount allowed by the board, or any city or town feeling itself aggrieved by any such decision, may appeal from the decision to the circuit court of the county in which the town or city liable for the claim may be located in the same manner and within the same time as provided for appeals from justices of the peace to circuit courts in civil cases.

Ark. Code Ann. § 24-11-816 Membership — Contributions.

(a)(1) Within sixty (60) days from July 1, 1975, each full-paid firefighter and each part-paid firefighter whose salary is fifty dollars ($50.00) or more per month, each part-paid firefighter whose salary is less than fifty dollars ($50.00) per month, and each active volunteer firefighter employed in the fire department of any city or town in this state, who desires that he or she and his or her beneficiaries participate in the firemen's relief and pension fund of the city or town, as created under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, shall file a statement with the secretary of the board of trustees of the firemen's relief and pension fund of the city or town. This statement, in writing under oath, shall state that he or she desires that he or she and his or her beneficiaries participate in the benefits from the fund. (2) The statement shall include the name and age of those persons immediately dependent upon him or her and shall authorize the governing body of the city to deduct from his or her salary such percentage, not less than six percent (6%) thereof, as may be approved for deduction by the local firemen's pension board. (3) The statement of an active volunteer fire fighter shall include a promise and an obligation to pay to the board of trustees of the firemen's relief and pension fund the sum of twelve dollars ($12.00) per year. (4) Any municipality or fire protection district in which a firemen's relief and pension fund is established shall contribute to the firemen's relief and pension fund an amount: (A) Not less than six percent (6%) of the firefighter's salary; or (B) Equal to the contribution paid by any volunteer firefighters who are members of the fund. (b)(1) In the event a former member again becomes an employee of the same fire department where previously employed, the firefighter shall again become a member of the system and the credited service forfeited by him or her shall be restored to his or her credit if he or she returns to the fund the amount refunded to him or her plus interest from the date of withdrawal to the date of repayment. (2)(A) The interest rate to be paid shall be equal to the fund's average investment rate of return as indicated in the last three (3) annual accountant's reports, but in no event less than six percent (6%). (B) The repayment shall be made according to such rules as the board shall adopt from time to time. (3) Any employee who has become a member of the Arkansas Local Police and Fire Retirement System shall remain a member of that system. (c)(1) Any firefighter who fails or refuses to make and file the statement required by this section to allow deductions from his or her salary or to pay the amount required by this section shall forfeit his or her right to participate in the benefits provided by the firemen's relief and pension fund of the city or town. (2) This section shall not apply to any firefighter heretofore retired who has a vested right to participate in the fund because he or she has completed the required length of service or because of physical or mental disability incurred in the performance of his or her duty, nor shall this section apply to any firefighter who has a vested right to participate in the fund because he or she has completed the required length of service and who has elected to continue in active service. (d)(1) If any firefighter shall elect not to participate in the fund, his or her salary shall not be liable for any deductions nor shall he or she be required to pay as provided in this section. (2) In the event of the resignation or discharge from the fire department of any member, all moneys deducted from the salary of the person or voluntarily paid by the person shall immediately be returned to him or her without interest. However, there shall be deducted from the refund the amount which has been expended by the board, as authorized under § 24-11-803(c), for the purchase of group insurance and payment of premiums thereon for the benefit of the firefighter. (e)(1) All moneys provided for the fund by this section shall be paid to and received by the treasurer of the city or town for the sole use and benefit of the fund, and the fund shall be used for no other purpose. (2) The additional duties thus imposed upon the treasurer shall be and comprise additional duties for which he or she shall be liable under his or her oath and bond as the city or town treasurer. (f)(1) The funds provided for by this section shall be supplemental to and in addition to any fund provided for by any laws in effect at the time of the passage of this section, shall become a part of the firemen's relief and pension fund, as created under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, and shall be administered by the board created by those sections, in the same manner as the funds provided therein. (2) It is the specific intention of this section not to repeal §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, but rather to provide additional money for the firemen's relief and pension fund, as created under Acts 1921, No. 491.

Ark. Code Ann. § 24-11-817 Military service.

(a) In the event that a member of a firemen's relief and pension fund, while an employee, enters the United States Armed Forces during any period of compulsory or voluntary military service, the armed service actually served by him or her shall be credited him or her as service under this subchapter. (b)(1) In any case of doubt as to the period of armed service to be so credited a member under this section, the board of trustees of the firemen's relief and pension fund shall have final power to determine the period. (2) Except for service credited under subsection (d) of this section, a member shall not be credited with a total of more than five (5) years of armed service. (c) During the period of armed service and until the member's return as an employee, his or her contributions to the fund shall be suspended, and any balance remaining to his or her credit in the fund shall be accumulated at regular interest. (d)(1)(A) Under the requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, as in effect October 13, 1996, a member who leaves covered employment to serve in the uniformed services of the United States after giving notice to the employer and who returns to employment shall be treated as not having incurred a break in service with the employer. (B) The employer shall certify to the pension fund that reemployment was in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, as in effect October 13, 1996. (2) Under this subsection, the uniformed services of the United States are limited to the United States Armed Forces, the Army National Guard and Air National Guard when engaged in active duty for training, state active duty, inactive duty training, or full-time National Guard duty, the United States Commissioned Corps of the Public Health Service; and any other category of persons designated by the President of the United States in time of war or national emergency. (3) The cumulative length of the absence from a position of employment with the employer by reason of service in the uniformed services for which service credit will be given shall not exceed five (5) years. (4) A member whose uniformed service is honorably terminated and who reports for reemployment under this subsection within the time provided in the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, as in effect October 13, 1996, shall be entitled to accrue benefits for the time the member served in the uniformed services by paying the employee contributions required by § 24-11-816, if any, within the time provided in the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4312, and by repaying any amount the member may have previously withdrawn from the pension fund, with interest. (5)(A) An employer reemploying a member under this subsection shall pay to the pension fund the employer contributions due for the time the member served in the uniformed services as required by § 24-11-816. (B) However, if a member does not pay the employee contributions due, then no employer contributions are due. (6) For the purposes of determining the employee and employer contributions due, the member's compensation during the period of service in the uniformed services shall be computed at: (A) The rate the member would have received if the member had not served in the uniformed services; or (B) The member's average compensation level during the twelve-month period, or shorter if applicable, immediately preceding the service. (7) Unless both employee and employer contributions are paid, the member shall not be entitled to any accrued benefits for the time served in the uniformed services. (8)(A) If a member dies on or after January 1, 2007, while performing military services qualified under the Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. No. 103-353, the member shall be treated as though he or she resumed covered employment on the day before the day of death. (B) For a member who had not attained a vested status in the pension fund, sufficient service credit shall accrue to permit the member to become vested. (C) For a member who had attained a vested status, additional service credit accrual shall not occur. (D) In all cases, the eligible benefit awarded by the pension fund under this section shall be a nonduty death benefit.

Ark. Code Ann. § 24-11-818 Benefits — Voluntary retirement.

(a)(1)(A) As used in this section, unless the context otherwise requires, the term “salary” shall mean recurring pays that are received for the firefighter's regularly scheduled workweek and shall not include, except as otherwise provided in subdivision (a)(1)(B) of this section, payments for unused accrued sick leave or annual leave or the cash value of any nonrecurring or unusual remunerations. (B)(i) The term “salary” may include the payments to a firefighter for unused accrued sick leave not to exceed ninety (90) workdays recorded on the records of the city or town as of the firefighter's date of retirement, provided the municipality agrees by ordinance to make adequate contributions to the fund to cover the additional costs for the benefits from the increased salary, and the fund is judged by an actuarial determination to be actuarially sound. (ii) The board of trustees shall determine the actuarial costs of the payments for the unused accrued sick leave to the fund. (2) Any pension fund member who has served in a fire department in the State of Arkansas for a period of twenty (20) years or more, the last five (5) years of which shall have been consecutive, shall be entitled to be retired and receive from the fund a monthly pension equal to one-half (½) of the salary attached to the rank he or she held as a volunteer, part-paid, or full-paid member. (b) Any firefighter who shall have completed the period of service as provided for in this section shall receive from the board a certificate showing that he or she has completed the term of service required and is entitled to participate in all the benefits provided for in this act upon compliance with, and subject to, all the other terms and conditions of this act, whether he or she severs his or her connections or continues in service at the expiration of the time as set out in subdivision (a)(2) of this section. The right to participate in the fund shall become a vested right and shall not be lost by the termination of his or her services with or without cause. (c) Any full-paid firefighter who is already retired shall not receive less than three hundred fifty dollars ($350) per month. (d)(1)(A)(i) Any full-paid firefighter who has more than twenty (20) years of service at the time of retirement shall be entitled to receive the sum of twenty dollars ($20.00) per month in addition to his or her regular retirement pay for each full year worked over and above twenty (20) years. (ii) In no instance shall he or she receive more than one hundred dollars ($100) per month in addition to his or her regular benefits. (B)(i) A volunteer or part-paid firefighter who has more than twenty (20) years of service at the time of retirement shall be entitled to receive the sum of ten dollars ($10.00) per month in addition to his or her regular retirement pay for each full year worked over and above twenty (20) years. (ii) In no instance shall he or she receive more than fifty dollars ($50.00) per month in addition to his or her regular benefits. (2) The increase in benefit levels provided in this subsection for service beyond twenty (20) years shall apply only to those firefighters who retire on or after January 1, 1987, and, notwithstanding the provisions of § 24-11-826, may exceed one hundred percent (100%) of final salary. (e) A volunteer or part-paid firefighter who becomes a full-paid member of his or her fire department shall be eligible to retire as a full-paid member only if he or she shall have been employed as a full-paid member for a period of at least five (5) years immediately prior to his or her retirement. (f)(1) For purposes of this subsection, the term “compensation” shall not include: (A) Any money received by the retired firefighter for replacement of personal clothing or equipment destroyed during the performance of active service to a fire department; or (B) Any expenditures by a municipality, as determined on a case-by-case basis, on behalf of the retired firefighter for hospitalization insurance benefits. (2) Notwithstanding the provisions of subsection (a) of this section or any other law to the contrary, a person retired from the service of a fire department may remain actively involved in the fire department, provided the person does not receive compensation for the service provided. (3) Service to a fire department under subdivision (f)(2) of this section shall not cause any suspension of retirement benefits payable under § 24-11-801 et seq., nor shall such service be interpreted by any board administering funds under this subchapter as a reinstatement of employment in a fire department.

Ark. Code Ann. § 24-11-819 Benefits — Disability retirement.

(a)(1) Any firefighter who becomes totally and permanently physically or mentally incapacitated for any suitable duty as an employee as a result of personal injury or disease may be retired by the board, upon written application filed by or on behalf of the member, if, after medical examination of the member made by or under the direction of a physician designated by the board, the physician reports in writing that the member is physically or mentally totally incapacitated for the further performance of any suitable duty, that the incapacity will probably be permanent, and that the firefighter should be retired. (2) The benefit amount shall be as follows: (A) If the disabling injury or disease occurred while not actually performing work in gainful employment for the fire department, the monthly benefit shall be equal to the benefit paid to normal service retirants; or (B)(i) For a full-paid firefighter who is injured in the line of duty, the monthly disability benefit shall either be equal to sixty-five percent (65%) of the salary attached to the rank held by the member in the fire department or shall be equal to the benefit paid to normal service retirants, whichever is greater. (ii)(a) For purposes of this section, “injured in the line of duty” means a disabling injury or disease that occurs while conducting official fire department operations or while in training to become a firefighter. (b) The board shall determine whether the disability occurred in the line of duty and may require any medical evidence, official reports, expert testimony, or other information to be supplied by the applicant in addition to the required physician's examination and report. (iii)(a) The additional benefits provided in this section shall be effective for all qualifying applications first received by the board on or after January 1, 1987, except that the board of trustees of any municipal firemen's relief and pension fund or of the Arkansas Local Police and Fire Retirement System may increase the benefits for any disabled firefighter injured in the line of duty before January 1, 1987, but after January 1, 1983, if the board adopts a resolution to extend the benefit retroactively to those firefighters and if the fund will remain actuarially sound as determined by an actuary for the Arkansas Fire and Police Pension Review Board or the Arkansas Local Police and Fire Retirement System. (b) The disability benefit provided in this section shall continue to be paid to the firefighter so long as he or she is retired and shall not be reduced to the regular service annuity amount, if less, when the retirant reaches the normal retirement age. (iv) Upon the death of the retirant, any survivor benefits shall be based upon the annuity amount received by the member at the time of his or her death, excepting any amount payable under § 24-11-826. (3) For purposes of computing all benefits, “salary” means recurring pays which are received for a regularly scheduled workweek and shall not include payments for unused accrued sick leave or annual leave or the cash value of any nonrecurring or unusual remunerations. (4) Any disability benefit approved under this section shall be effective the first day of the calendar month next following the latter of either the firefighter's termination of active membership or six (6) months before the date the written application was filed with the board. (5) In the event that a firefighter's disability ceases, his or her benefit shall also cease, and he or she shall be returned to active service at not less than the same salary he or she received at the time of his or her retirement. (b)(1) No person shall be retired as provided in this section or receive any pension from the fund unless there shall be filed with the board certificates of his or her disability. The certificates shall be subscribed and sworn to by the person and by the city or town physician, if there is one, and by the firemen's relief and pension fund physician. (2) The board may require other evidence of disability before ordering the retirement and payment as provided in this section. (c)(1) At least one (1) time each year during the first five (5) years, or as often as required by the board following a member's retirement for disability and at least one (1) time each three (3) years thereafter, the board may require any disability retirant who has not attained the normal retirement age to undergo a medical examination by or under the direction of a physician or physicians designated by the board. (2) If the retirant refuses to submit to the medical examination in any period, his or her disability annuity may be suspended by the board until he or she complies with the provisions of this section. (3) If his or her refusal continues for one (1) year, all his or her rights in and to a disability annuity may be revoked by the board. (4) If, upon such medical examination of the retirant, the physician reports to the board that the retirant is physically and mentally able and capable of resuming suitable duty as an employee, his or her disability retirement shall terminate.

Ark. Code Ann. § 24-11-820 Benefits — Death of active or retired member other than while employed outside department.

(a)(1) Whenever any member of a fire department of any city, town, or fire improvement district covered by this act shall have lost his or her life, except while actually performing work in gainful employment outside the fire department, or any retired member shall die, leaving a spouse or children under nineteen (19) years of age, then, upon satisfactory proof of those facts made to it, the board of trustees shall order and direct, in the case of volunteer or part-paid firefighters, that a monthly pension equal to the amount of the pension or retirement pay attached to the rank of the member of the fire department at the time of his or her death shall be paid for life to the spouse. The monthly pension shall not be less than one hundred dollars ($100). (2) In the case of full-paid firefighters' classifications, a monthly pension shall be paid for life to the spouse in the amount of the pension received by the retired firefighter at the time of his or her death, or the amount of the pension to which the member would have been entitled on the day he or she died had he or she been retired, but in no event shall the benefit of the spouse be less than three hundred fifty dollars ($350) per month, regardless of whether: (A) The spouse has already been receiving pension payments; and (B) The firefighter was on active duty or retired. (b)(1)(A) In addition to the monthly pension provided in subsection (a) of this section, the board of trustees may order and direct the payment of, in the case of volunteer or part-paid firefighters, the sum of twenty-five dollars ($25.00) per month for each child under nineteen (19) years of age who has not completed high school and, in the case of full-paid firefighters, the sum of one hundred twenty-five dollars ($125) per month for each child under nineteen (19) years of age who has not completed high school. (B) However, if the child enrolls in an institution of higher education after completing high school, the payments shall continue as long as the child is a full-time student, but in no instance beyond the child's twenty-third birthday. (2)(A) If there is no eligible spouse at the time of the member's death, then the total sums shall be paid to his or her children until they shall have reached nineteen (19) years of age or until the children have completed high school, whichever occurs first. (B) However, if a child enrolls in an institution of higher education after completing high school, the payments shall continue as long as the child is a full-time student, but in no instance beyond the child's twenty-third birthday. (3)(A) The sum total of the pension to be paid the spouse or the qualifying child or children of volunteer or part-paid firefighters shall not exceed one-half (½) of the salary attached to the rank the member held at the time of his or her death as an active member of a volunteer or part-paid fire department, nor shall it be less than one hundred dollars ($100) per month. (B) However, the limit on the sum total amount under subdivision (b)(3)(A) of this section may be exceeded through the benefit increases authorized under § 24-11-102. (4)(A) If any spouse or child shall marry, he or she shall thereafter receive no further pension under this subchapter. However, if he or she is a surviving spouse of a firefighter who is killed while in the official performance of his or her duties, then that surviving spouse’s benefits may be restored to the spouse whose benefits had been terminated before or after August 1, 1997, upon his or her application to and approval by the board of trustees. (B) The benefit restored under subdivision (b)(4)(A) of this section may include retroactive benefit increases to the last amount received by the surviving spouse upon approval of the board of trustees after obtaining results of an actuarial study to determine its effect on the fund. The benefit restoration shall not include any retroactive lump-sum payment. (5) If any retired firefighter shall marry after his or her retirement, the surviving spouse may be entitled to a pension under this subchapter if: (A) He or she has been married to the firefighter for a period of at least five (5) years and the marriage occurred within five (5) years of the retirement date; (B) The board of trustees for the fund decides to extend this benefit for its members; and (C) The pension fund will be actuarially sound as determined by the actuary for the Arkansas Fire and Police Pension Review Board after this benefit increase is extended to members. (c)(1) In computing service required under this section for eligibility to participate in benefits, service shall be computed from the day the person from whom benefits are derived was duly appointed and enrolled in some fire department in the State of Arkansas as a firefighter, and the service shall be considered in determining eligibility for benefits regardless of whether it was performed before or after the passage of §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820. (2) It is the intention of this act that all spouses and dependent children of full-paid, part-paid, and volunteer firefighters shall receive at least the minimum benefits prescribed in this section, regardless of whether the service upon which the spouses or dependent children derived the benefit was performed before or after the passage of §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820. (d) Any payment of benefits above the minimum amounts stated in this section shall not be made except upon determination that the fund will remain actuarially sound. (e)(1) It is the intention of this section to make eligible for benefits the spouses and dependent children of members who died from illness after leaving active service or who died after being retired for a duty-related injury, as described in this section, regardless if the service, retirement, or death occurred before or after the passage of this section. (2) However, payment to survivors made eligible by this section shall not be made retroactively but shall begin with the passage of this section. (f)(1) If a retirant and, if any, his or her eligible beneficiary both die before they have received in annuity payments a total amount equal to the accumulated contributions, including any interest credits, standing to the retirant's credit in the system at the time of his or her retirement, the difference between the accumulated contributions and the total amount of annuities received by them shall be paid to such person or persons as the retirant shall have nominated by written designation duly executed and filed with the board. (2) If no designated person survives the retirant and his or her beneficiary, the difference shall be paid to the estate of the survivor of the retirant and his or her beneficiary.

Ark. Code Ann. § 24-11-822 Benefits — Payments upon death of retirant or beneficiary.

(a)(1) If a retirant and his or her eligible beneficiary, if any, of a local firemen's relief and pension fund authorized by this subchapter, both die before they have received in annuity payments a total amount equal to the accumulated contributions, including any interest credits standing to the retirant's credit in the system at the time of his or her retirement, the difference between the accumulated contributions and the total amount of annuities received by them shall be paid to the estate of the retirant or the estate of the retirant's beneficiary. (2) If the retirant or the retirant's beneficiary dies intestate, the difference shall be paid to the heirs of the retirant or the retirant's beneficiary according to the Arkansas laws of descent and distribution, § 28-9-201 et seq., without regard to the residence of the retirant or the retirant's beneficiary at the time of death upon submission of sufficient proof of heirship to the board. (b) If an active member dies and does not leave a beneficiary entitled to an annuity payment, the difference between the accumulated contributions, including any interest credits standing to the member's credit in the system at the time of his or her death, and the total amount of annuities received by him or her shall be paid to the estate of the member, or if the member dies intestate, shall be distributed to his or her heirs according to the Arkansas laws of descent and distribution, § 28-9-201 et seq., without regard to the residence of the member at the time of his or her death upon submission of sufficient proof of heirship to the board. (c) The payments shall be made by the board in accordance with the order of the circuit court in cases involving an estate or directly to those authorized to receive payments according to the Arkansas laws of descent and distribution in cases of intestacy.

Ark. Code Ann. § 24-11-823 Increase in benefits for certain persons retired due to total permanent disability.

(a) The board of trustees of any municipal firemen's relief and pension fund may increase benefits to persons who have retired or may retire from the fire department of the municipality because of total and permanent disability and who qualify or may qualify for monthly benefits of less than five hundred dollars ($500). (b) The benefits of any such person shall not be increased to more than five hundred dollars ($500) per month, and the increase shall be subject to the following conditions: (1) The board of trustees shall adopt a resolution approved by not less than three-fourths (¾) of the membership of the board outlining the proposed increase in benefits; (2) The board shall obtain an actuarial valuation by an actuary stating that the fund will continue to be actuarially sound notwithstanding the effects of the resolution; and (3) A copy of the resolution adopted by the board and a copy of the actuarial valuation approving the resolution shall be filed with the circuit clerk of the county in which the fire department is located, with the Arkansas Fire and Police Pension Review Board, and, if the fire department is located within the incorporated boundaries of a city, with the city clerk of that city.

Ark. Code Ann. § 24-11-824 Fire protection districts.

(a) Any fire protection district in this state formed pursuant to §§ 14-284-101 — 14-284-121 and maintaining a fire department within that district is eligible to establish by resolution of the board of commissioners of the district a firemen's relief and pension fund covering the employees of that fire department. (b)(1) The board of commissioners of the district together with the chief of the fire department of the district shall constitute the board of trustees of the firemen's relief and pension fund of the district and shall designate the beneficiaries thereof in the same manner and with the same qualifications as specified in this subchapter for the designation of beneficiaries of firemen's relief and pension funds in cities and towns of this state. (2) The boards of trustees of firemen's relief and pension funds established pursuant to this section shall be operated in the same manner, have the same powers, and be subject to the same limitations imposed on, and granted to, those boards of trustees of firemen's relief and pension funds established by this subchapter. (c) In addition to the funds provided by § 24-11-809 from insurance premium taxes, there shall also be added the following moneys: (1) All money given or donated to the fund; and (2)(A) Six percent (6%) of the monthly salary of each full-paid firefighter and each part-paid firefighter of the department, to be deducted each month by the district and immediately paid to the board of trustees of the firemen's relief and pension fund. (B) However, in the event of resignation or discharge from the fire department of any member thereof, all money deducted from his or her salary shall be immediately returned to him or her without interest. (d)(1) In the event the fire protection district maintaining a firemen's relief and pension fund pursuant to this section should be merged with, and become a part of, any city or town of this state having a firemen's relief and pension fund pursuant to this subchapter, the fund of the district shall be merged into, and for all purposes become a part of, the firemen's relief and pension fund of the city or town, and the board of trustees of the firemen's relief and pension fund of the city or town shall operate the firemen's relief and pension fund of the district as a part of the fund of the city or town and shall assume all obligations and assets of the district fund as its own. (2) The board of trustees of the firemen's relief and pension fund of the merging district shall cease to exist upon the completion of the transfer and merger. (e) The board of trustees of the firemen's relief and pension fund of any fire protection district formed pursuant to §§ 14-284-101 — 14-284-121 may expend moneys from the firemen's relief and pension fund for the purpose of purchasing and paying the premiums on group insurance covering the members of the fire department of the district against accidental injury or death occurring in the line of duty.

Ark. Code Ann. § 24-11-825 Pensions for volunteer firefighters.

(a) Upon termination of volunteer firefighter service with all Arkansas fire departments, a firefighter whose covered volunteer employment has been with more than one (1) Arkansas fire department shall receive a pension based upon the volunteer service if all of the following conditions are satisfied: (1) His or her volunteer service with his or her last employing fire department was for five (5) or more consecutive years and ended with his or her retirement; (2) Previous volunteer service with each other fire department shall have been: (A) For five (5) or more consecutive years; (B) Covered by a local fire pension plan established by this subchapter; and (C) Requested in writing for service credit by the retiring firefighter; (3) Upon receipt of the request pursuant to subdivision (a)(2) of this section, each previous employing fire department shall certify the amount of the previous volunteer service to the local fire pension plan of the last employing fire department. The last local fire pension plan shall then cause to have performed at its expense an actuarial valuation to determine the single sum present value of the previous volunteer service being credited, based upon the benefit program the previous local fire pension plan had in effect at the time the firefighter terminated such previous service. The actuarial valuation shall be performed by the actuary of the Arkansas Fire and Police Pension Review Board. The dollar amount of the present value shall be promptly certified to the previous plan, which shall promptly pay that amount to the last pension plan; (4) No more than one (1) year of service shall be credited any firefighter for all covered employment rendered by him or her in any one (1) year, nor shall any firefighter be given credited service for any time he or she was not an active firefighter; (5) The firefighter shall cause to be transferred from each previous pension plan to the last pension plan the amount of his or her accumulated employee contributions with each previous pension plan; and (6) The total of all service to be credited as described in this subsection must be at least twenty (20) years. (b) The pension payable from the last pension plan shall be based upon the benefit program in effect for the last employing fire department. However, any pension fund that did not meet the actuarial standards for soundness as determined by the most recent actuarial valuation performed on the fund by the Arkansas Fire and Police Pension Review Board shall not transfer assets to another local pension fund for prior service of a former volunteer member, nor shall any volunteer member be given credited service time for which no transfer of assets is made. (c) Upon a member's termination of volunteer firefighter service with all Arkansas departments for a period of not less than ninety (90) days, the member may return to volunteer service with an employer covered by a firemen's relief and pension fund and may continue to draw the retiree's pension if the retiree desires to return to volunteer service with an employer covered by a pension fund and voluntarily agrees to sign a waiver to earning any further service credit in any firefighter-related pension fund.

Ark. Code Ann. § 24-11-826 Additional benefits for certain firefighters hired prior to January 1, 1983 — Definition.

(a)(1) Beginning July 1, 1987, in addition to the monthly pension benefits as set forth in §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-812 — 24-11-815, 24-11-818, and 24-11-820, for those firefighters hired prior to January 1, 1983, and who continue to work beyond their twenty-fifth year, the member of a firemen’s relief and pension fund shall receive at age sixty (60) and thereafter a benefit on the amount equal to one and one-fourth percent (1.25%) of final salary attached to the rank which he or she held in the department preceding the date of retirement multiplied by the number of years of service in excess of twenty-five (25) years, up to a maximum total benefit of seventy-five percent (75%) of final salary, provided that the maximum seventy-five percent (75%) of final salary no longer applies to benefits payable on April 30, 1991, and thereafter to persons retiring henceforth and to those persons who retired on or after July 1, 1987. (2) However, in no case shall the benefit payment exceed one hundred percent (100%) of final salary. (b) This benefit shall be payable to the member only and not to surviving spouses or dependent children. (c)(1) For the purposes of this section, “salary” means recurring pays that are received for a regularly scheduled workweek and does not include, except as otherwise provided in this subsection, payments for unused accrued sick leave or annual leave or the cash value of any nonrecurring or unusual remuneration. (2)(A) The term “salary” may include the payments to those firefighters under this section for unused accrued sick leave not to exceed ninety (90) workdays recorded on the records of the city or town as of the firefighter's date of retirement if the municipality agrees by ordinance to make adequate contributions to the fund to cover the additional costs for the benefits from the increased salary and the fund is judged by an actuarial determination to be actuarially sound. (B) The board of trustees of a firemen’s relief and pension fund shall determine the actuarial costs of the payments for the unused accrued sick leave to the fund.

Ark. Code Ann. § 24-11-827 Retired member returning to active status.

(a) Notwithstanding any other provision of the law to the contrary, should an age or service retirant return March 1, 1986, or later to employment in a position covered by the firemen's relief and pension fund from which he or she retired, no pension payments shall be paid to him or her for the period of the reemployment, and he or she shall make member contributions to the firemen's relief and pension fund as if he or she were an active member during the reemployment. (b) If reemployment terminates before the retirant has rendered sufficient reemployment to accumulate at least three (3) years of credited service had he or she been an active member during the reemployment, the payment of his or her pension shall resume upon termination, under the form of payment in force at the beginning of reemployment and in an amount as it would be had he or she not been reemployed. (c) If reemployment continues until the retirant has rendered sufficient reemployment to accumulate at least three (3) years of credited service, then effective upon completion of reemployment, his or her retirement shall be recalculated to account for the additional accrued service credit and salary.

Ark. Code Ann. § 24-11-829 Increase in surviving spouse benefits.

(a) Notwithstanding the other provisions of this chapter, the board of trustees of any municipal firemen's relief and pension fund for which a full one-mill tax is levied and which received in excess of five hundred thousand dollars ($500,000) from premium tax funds during the most recent year shall increase surviving spouse benefits payable from the firemen's relief and pension fund to the amount of the pension received by the retired firefighter at the time of his or her death, or the amount of the pension to which the member would have been entitled on the day he or she died had he or she been retired. (b) The board shall direct a monthly pension in the increased amount effective on or before August 1, 1993.

Ark. Code Ann. § 24-11-830 Deferred retirement option plan.

(a) In lieu of terminating employment and accepting a service retirement pension pursuant to this subchapter, any full-paid firefighter who is a member of a firemen's relief and pension fund who has not less than twenty (20) years of credited service and who is eligible to receive a service retirement pension may elect to participate in the Arkansas Fire Fighters Deferred Retirement Option Plan and defer the receipt of benefits in accordance with the provisions of this section, provided the local board of trustees of the local firemen's relief and pension fund approves the participation in the plan. (b) For purposes of this section, credited service shall include service credit recognized pursuant to this subchapter. (c)(1)(A) Except under subdivision (c)(1)(B) of this section, the duration of participation in the plan for active full-paid firefighters shall not exceed five (5) years. (B) The five-year limit may be extended if: (i) The extension does not cause the limit to exceed ten (10) years; (ii) The extension applies to all active full-paid firefighters and all members on the plan; (iii) The extension is approved by a majority of votes of the board of trustees of the firemen's relief and pension fund or of the Board of Trustees of the Arkansas Local Police and Fire Retirement System for funds whose administrative responsibility has been assigned to the system as provided in § 24-11-406(b); (iv) The interest credited after the first five (5) years on the plan shall be two (2) percentage points below the rate of return of the investment portfolio of the fund and shall not be determined under subdivision (e)(2) of this section, but the interest rate credited shall not be less than zero percent (0%); (v) Seventy-five percent (75%) of the monthly retirement benefits that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the plan account, or one hundred percent (100%) of the monthly retirement benefits that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the plan account if approved by a majority vote of the governing board of the sponsoring municipality; and (vi) The extension is approved by a majority vote of the governing body of the sponsoring municipality after receiving approval for an increase in benefits under § 24-11-102. (2)(A) Except under subdivision (c)(2)(B) of this section, at the conclusion of a member's participation in the plan, the member shall terminate employment with all participating municipalities as a firefighter and shall start receiving the member's accrued monthly retirement benefit from the firemen's relief and pension fund. (B) If a member is at the conclusion of a member's participation in the plan, then the member may continue employment by a municipality under the following conditions: (i) The municipality makes continued employment available to all similarly situated members; (ii) The availability of continued employment is approved by a majority vote of the governing body of the sponsoring municipality after receiving approval for an increase in benefits under § 24-11-102; (iii) The monthly benefit that is credited to the member's plan account is discontinued and the member shall not receive a monthly benefit until the member actually ceases employment; (iv) The interest rate credited to the plan account is the same as paid under subdivision (e)(2) of this section, except that the minimum rate is zero percent (0%); (v) The employer's matching contribution of six percent (6%) shall cease, but all other employer contributions shall continue and be credited to the firemen's relief and pension fund; and (vi) The employee contributions of six percent (6%) shall discontinue. (d)(1) When a member begins participation in the plan, the contribution of the firefighter and the employer contribution shall continue to be paid. (2)(A) In a municipality having a population of over twenty thousand (20,000) persons, municipal matching contributions for employees who elect the plan shall be credited equally to the firemen's relief and pension fund and to the plan, or at the option of the local firemen's relief and pension fund board of trustees, credited in the manner provided in subdivision (d)(2)(B) of this section. (B) In a municipality having a population of twenty thousand (20,000) persons or less, municipal matching contributions for employees who elect the plan shall be credited in full to the firemen's relief and pension fund, and the contribution of the employee shall be credited to the member's plan account. (3) The monthly retirement benefits that would have been payable had the member elected to cease employment and receive a service retirement shall be paid into the plan account. (e)(1) The member's monthly retirement benefit shall not change, unless the plan receives a benefit increase. (2)(A) A member who participates in this plan shall earn interest at a rate of two (2) percentage points below the rate of return of the investment portfolio of the firemen's relief and pension fund as certified by the actuary under contract with the Arkansas Fire and Police Pension Review Board in accordance with generally accepted actuarial practices and § 24-11-207, but no less than the actuarial assumed interest rate as certified by the actuary. (B) The interest shall be credited to the individual account balance of the member on an annual basis. (f)(1) A participant in the plan shall receive at the option of the participant a lump-sum payment from the account equal to the payments to the account or a true annuity based upon the account of the participant or may elect any other method of payment if approved by the board of trustees. (2) If approved by a majority vote of the governing body of the sponsoring municipality and the board of trustees, a participant in the deferred retirement option plan may defer receiving payment of the participant's account and continue with the funds deposited in the plan. (3)(A) Interest credited to the continuing deposit of funds in the plan under subdivision (f)(2) of this section shall be calculated in the same manner as interest under subdivision (e)(2) of this section. (B) However, the minimum interest rate shall not be less than zero percent (0%). (4)(A) The payment of funds accumulated while participating in the deferred retirement option plan may be deferred only one (1) time. (B)(i) These funds shall be distributed or annuitized by April 1 of the year following the calendar year in which a member attains the applicable age. (ii) In the case of a participant who attains seventy-two (72) years of age after December 31, 2022, and seventy-three (73) years of age before January 1, 2033, the applicable age is seventy-three (73) years of age. (iii) In the case of a participant who attains seventy-four (74) years of age after December 31, 2032, the applicable age is seventy-five (75) years of age. (g) If the participant dies during the period of participation in the plan, a lump-sum payment equal to the account balance of the participant shall be paid. (h) The Arkansas Fire and Police Pension Review Board may promulgate rules to make the plan under this section comply with the requirements of this section and with the applicable portions of the Internal Revenue Code, 26 U.S.C. § 1 et seq., as it existed on January 1, 2003.

Ark. Code Ann. § 24-11-832 Applicability of § 24-11-820.

The provisions of § 24-11-820(b)(1) and (2) extending the survivorship benefits for children of deceased firefighters through their college years shall apply retroactively to any situation involving a surviving child that began on or after January 1, 1996.

Ark. Code Ann. § 24-11-833 Fire-related service.

(a) A member of a firemen's relief and pension fund who has fire-related service with the municipal government is entitled to purchase credited service in the system equivalent to the amount of employment service he or she has with the municipal fire department in a position as fire-related employment service up to a maximum of three (3) years of credited service, provided that the member contributes to the system an amount as the Arkansas Fire and Police Pension Review Board shall determine would be actuarially equivalent to the value of the service purchased. (b) The board shall have the final power to determine the value of the service purchased. (c) Service credit purchased under this section may be used to determine the member's total credited service for the amount upon retirement and shall not be used to determine his or her final average pay for service under the system. (d) As used in this section, “fire-related service” means service with a municipality that has firefighters covered under a firemen's relief and pension fund in a job or in a paid position within a covered fire department or fire department where the person performs duties that are related to the delivery of fire services, including service such as a fire department radio dispatcher or other similar service.

Ark. Code Ann. § 24-11-834 Former military service credit purchase.

(a) An active member of a firemen's relief and pension fund may purchase credited service in the pension fund equivalent to a period not to exceed five (5) years for service rendered by the member while on active duty in the United States Armed Forces before the member's employment covered by the pension fund, if the member: (1) Received an honorable discharge from the armed forces; (2) Has at least twenty (20) years of actual service in the pension fund; and (3)(A) Contributes to the pension fund an amount that is the actuarial equivalent of the value of the credited service to be purchased. (B) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the Arkansas Fire and Police Pension Review Board or by the actuary for the Arkansas Local Police and Fire Retirement System for a pension fund under administration by the system. (b) The board of trustees of the firemen's relief and pension fund shall make the final determination as to the: (1) Length of purchased service credit; (2) Amount of regular interest to be charged; and (3) Manner in which payment is made to the pension fund. (c) Service credit purchased under this section shall be used to determine the member's total credited service under the pension fund but shall not be used to determine his or her final average pay under the pension fund.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.24.htmlFetched: 11/8/2026