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Form a Business

Local Pension Funds Generally

Ark. Code Ann. tit. 24, ch. 9
in effect

Ark. Code Ann. § 24-9-201 Legislative intent.

Authorized investments of moneys by the governing bodies of the various trust funds within this state are now provided by law. It is not the intent of this subchapter to change or prescribe the allowable investments in certificates of deposit, registered securities, or negotiable securities.

Ark. Code Ann. § 24-9-202 Definition.

As used in this subchapter, unless the context otherwise requires, “trust funds” means all assets and holdings of the various firemen's and policemen's pension funds of this state. In addition, other assets and holdings which are of a trust nature and are under the administration of political subdivisions of this state are, for purposes of this subchapter, to be considered trust funds. However, trust funds shall not include funds required to be maintained by ordinances, resolutions, or indentures securing bond issues of political subdivisions.

Ark. Code Ann. § 24-9-203 Applicability.

This subchapter shall apply to all funds as defined in § 24-9-202 and administered by any political subdivision of this state.

Ark. Code Ann. § 24-9-204 Employment of trust administrators.

(a) By board action, the board of trustees may employ a commercial firm normally engaged in providing trust services, if each employee of the trust department who handles the trust funds is covered by a good and sufficient fidelity bond, to act as the agent for the board of the trust for the purpose of maintaining and administering the fund and to provide such assistance or services as the board of the trust may reasonably require in the performance of its duties. (b) The bank or firm so employed shall not have the authority to make any investment decision or any determination as to the eligibility of any person entitled to receive a pension or any other benefit from the fund, nor to make any determination as to the amount of any pension or benefit which any person may be entitled to receive from the fund.

Ark. Code Ann. § 24-9-205 Bank accounts.

When the governing body of a trust deposits money of that trust in a commercial bank account or in a trust account of a trust department of a bank or other firm normally engaged in providing trust services, the following minimum requirements must be met: (1) Funds must be deposited into the account in the name of the trust; (2) Withdrawals from the account, whether by check or warrant, shall require the signatures of the chair and the treasurer of the board of the trust; and (3)(A) The treasurer shall execute a bond to the board of trustees with good and sufficient sureties in such penal sum as the board shall direct, conditioned on the faithful performance of the duties of his or her office. (B) The bond shall be filed in the office of the board of trustees.

Ark. Code Ann. § 24-9-206 Certificates of deposit.

When a governing body of a trust shall decide to invest moneys belonging to the trust in certificates of deposit, the following conditions must be met: (1) The certificate of deposit must be issued in the name of the trust; (2) The certificate, when received, must be maintained at the office of the board of trustees or in the trust department of a firm normally engaged in providing trust services; and (3) Subsequent to the purchasing of a certificate of deposit, the board of trustees shall be required to request confirmation of the validity of the certificate directly from the issuing bank.

Ark. Code Ann. § 24-9-207 Registered securities.

(a)(1) When the governing body of a trust decides to invest trust moneys in registered securities, all the securities purchased shall be issued in the name of the trust with at least the signatures of two (2) members of the board required for renegotiation of the securities. (2) One (1) signature shall be that of the board treasurer and the other that of the chair of the board. (b) The securities are to be maintained in the office of the board of trustees or the trust department of a commercial firm normally engaged in providing trust services. (c)(1) Subsequent to the purchase of the securities, the board of trustees shall request confirmation directly from the issuing company of the registration of the securities. The confirmation shall be made by the board independently of the agent through whom the securities were purchased. (2) The board of trustees shall maintain copies of the confirmation letters as a part of its records.

Ark. Code Ann. § 24-9-208 Negotiable securities.

(a) When the board of trustees of a trust decides to invest trust moneys in negotiable securities, the board shall purchase the securities from reputable bonded dealers in those securities. (b) The board shall require the dealers to certify to the authenticity of the securities. (c) The securities shall be held in the office of the board of trustees or by the trust department of a commercial firm normally engaged in providing trust services. (d) The sale of negotiable securities shall require written authorization from at least two (2) board members, one being the board treasurer and the other the chair of the board.

Ark. Code Ann. § 24-9-209 Listing of securities.

(a) The board shall maintain a detailed listing of all securities owned by the trust. (b) Purchases and sales of securities shall be by official board action documented in the board minutes.
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

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