Requirements for qualified plans under Internal Revenue Code.
Ark. Code Ann. § 24-11-210
in effect(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.
Source: Arkansas General Assembly, Acts of 2021-2026 (arkleg.state.ar.us)URL: https://arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2023R%2FPublic%2F&file=44.pdf&ddBienniumSession=2023%2F2023RFetched: 11/8/2026