General Provisions

Ark. Code Ann. tit. 24, ch. 1

in effect

Ark. Code Ann. § 24-1-101 Assets and income for retirement systems.

All assets and income of any state-supported retirement system administered by an agency of the State of Arkansas shall be held, invested, or disbursed for the exclusive purpose of providing for benefits, investment management, and administrative expenses, including the acquisition of a building for the permanent offices of the state-supported retirement systems, and shall not be encumbered for or diverted to any other purposes.

Ark. Code Ann. § 24-1-102 Annual valuation.

(a) Annually, each Arkansas state-supported retirement system shall make a valuation of each system's assets and incomes for the system. (b) Actuarial assumptions and methods which are used for the annual valuation of each Arkansas state-supported retirement system shall be set by each system's board based upon the recommendations made by the board's actuary and agreed upon by the actuary employed by the Joint Committee on Public Retirement and Social Security Programs or other actuary employed by the General Assembly to review public retirement system legislation. (c) If the board's actuary and the actuary employed by the General Assembly do not agree as to the actuarial assumptions and methods used to calculate the system's valuation, then a third actuary shall be selected mutually between the actuaries, and the third actuary shall determine the actuarial assumptions and methods to be used. (d) The actuarial assumptions and methods shall include the actuarial funding method, the method of valuing assets, and similar actuarial matters involved in the actuarial valuation.

Ark. Code Ann. § 24-1-103 Change of contribution rate.

No contribution rate of any state-supported retirement system in effect on March 14, 1995, shall be changed except by a vote of the General Assembly.

Ark. Code Ann. § 24-1-104 Liabilities not to exceed thirty-year amortization.

No legislated benefit enhancement shall be enacted which would cause the system's unfunded accrued actuarial liabilities to exceed a thirty-year amortization.

Ark. Code Ann. § 24-1-105 Liabilities exceeding thirty-year amortization period — Legislated benefit enhancement prohibited.

When any retirement system on or after March 14, 1995, has unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years, that system shall not have a legislated benefit enhancement until the unfunded actuarial accrued liability is reduced to a level less than the standards set by this subchapter.

Ark. Code Ann. § 24-1-106 Benefit enhancements.

(a) No benefit enhancement provided for by §§ 24-2-302, 24-2-306, 24-2-401, 24-2-402, 24-2-501, 24-3-102 [repealed], 24-3-106 [repealed], 24-3-201 [repealed], 24-3-208 [repealed], 24-3-209 [repealed], 24-3-301 [repealed], 24-3-303 [repealed], 24-3-304 [repealed], 24-4-101, 24-4-106, 24-4-107, 24-4-301, 24-4-507, 24-4-508, 24-4-510, 24-4-511, 24-4-518 — 24-4-520, 24-4-601, 24-4-608, 24-4-618, 24-4-710 [repealed], 24-4-745 — 24-4-747, 24-4-801, 24-4-803, 24-5-112, 24-5-119, 24-5-125, 24-5-133, 24-5-204, 24-6-219, 24-6-403 — 24-6-406, 24-6-410, 24-6-411, 24-7-202, 24-7-209, 24-7-301, 24-7-406, 24-7-504 [repealed], 24-7-603, 24-7-604, 24-7-606, 24-7-607, 24-7-702, 24-7-705, 24-7-706, and 24-7-708, § 24-7-713(b), §§ 24-7-720, 24-7-727, 24-7-728, 24-7-729, 24-7-1314 [repealed], 24-7-1315, 24-7-1401 — 24-7-1409 [repealed], 24-8-223, 24-8-226 — 24-8-228, 24-8-701 — 24-8-714, 24-8-715 [repealed], 24-8-716, 24-8-717, 24-10-102, 24-10-303, 24-10-504 — 24-10-509, 24-10-602, 24-10-611, 24-10-613, 24-11-425, 24-11-434, 24-11-437, 24-11-438, 24-11-805, 24-11-818, and 24-11-833 shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization. (b) No benefit enhancement provided for by §§ 24-2-302, 24-2-306, 24-2-401, 24-2-402, 24-2-501, 24-3-102 [repealed], 24-3-106 [repealed], 24-3-201 [repealed], 24-3-208 [repealed], 24-3-209 [repealed], 24-3-301 [repealed], 24-3-303 [repealed], 24-3-304 [repealed], 24-4-101, 24-4-106, 24-4-107, 24-4-301, 24-4-507, 24-4-508, 24-4-510, 24-4-511, 24-4-518 — 24-4-520, 24-4-601, 24-4-608, 24-4-618, 24-4-710 [repealed], 24-4-745 — 24-4-747, 24-4-801, 24-4-803, 24-5-112, 24-5-119, 24-5-125, 24-5-133, 24-5-204, 24-6-219, 24-6-403 — 24-6-406, 24-6-410, 24-6-411, 24-7-202, 24-7-209, 24-7-301, 24-7-406, 24-7-504 [repealed], 24-7-603, 24-7-604, 24-7-606, 24-7-607, 24-7-702, 24-7-705, 24-7-706, and 24-7-708, § 24-7-713(b), §§ 24-7-720, 24-7-727, 24-7-728, 24-7-729, 24-7-1314 [repealed], 24-7-1315, 24-7-1401 — 24-7-1409 [repealed], 24-8-223, 24-8-226 — 24-8-228, 24-8-701 — 24-8-714, 24-8-715 [repealed], 24-8-716, 24-8-717, 24-10-102, 24-10-303, 24-10-504 — 24-10-509, 24-10-602, 24-10-611, 24-10-613, 24-11-425, 24-11-434, 24-11-437, 24-11-438, 24-11-805, 24-11-818, and 24-11-833 shall be implemented by any publicly supported system which has unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years until the unfunded actuarial accrued liability is reduced to a level less than the standards prescribed by Title 24 of this Code.

Ark. Code Ann. § 24-1-108 Effect of concurrent employment on member's benefits — Notice.

(a) The purpose of this section is to provide notice to an applicant for concurrent employment in a public employee position that the concurrent employment might affect the employee's retirement benefits and to allow the employee and employer an opportunity to consider an alternative method of employment that would allow an enhanced retirement benefit for the prospective employee. (b) If an applicant for concurrent employment in a public employee position provides information to a prospective public employer that the applicant is a current public employee and is enrolled as a member of a reciprocal system, then the prospective employer shall notify the applicant that it may be in the applicant's best interest to contact his or her current retirement system regarding the legal status of retirement benefits that may result if the applicant is employed by two (2) or more state-supported retirement systems. (c) The failure of a state-supported retirement system to notify a prospective employee under this section does not create a legal obligation on behalf of the state-supported retirement system or a legal right on behalf of the prospective employee.

Ark. Code Ann. § 24-1-201 Declaration of policy.

In order to extend to employees of the State of Arkansas and its political subdivisions and the employees' dependents and survivors the basic protection accorded to others by the federal old age, survivors' and disability insurance, and health insurance coverage embodied in the Social Security Act, 42 U.S.C. § 301 et seq., it is declared to be the policy of the State of Arkansas, subject to the limitations of this subchapter, that steps be taken to provide protection to employees of the state and its political subdivisions in compliance with the provisions of the Social Security Act, 42 U.S.C. § 301 et seq.

Ark. Code Ann. § 24-1-202 Definitions.

As used in this subchapter: (1) “Commissioner of Social Security” means any individual to whom the Commissioner of Social Security has delegated any of his or her functions under the Social Security Act, 42 U.S.C. § 301 et seq., with respect to coverage under that act of employees of the state and its political subdivisions; (2) “Employee” means an officer or an employee of the state or a political subdivision of the state. All public employees of the State of Arkansas and its political subdivisions, for Social Security purposes, shall be deemed employees of the paying political entity for which services are rendered, which entity shall be the proper agency for making the deductions, matching contributions, and report required by this subchapter; (3) “Employer” means the State of Arkansas and its political subdivisions; (4) “Employment” means any service performed by an employee in the employ of the state or any political subdivision of the state for his or her employer except: (A) Services which, in the absence of any agreement entered into under this subchapter, would constitute employment as defined in the Social Security Act, 42 U.S.C. § 301 et seq.; or (B) Services which, under applicable federal law, may not be included or may have been voluntarily excluded in an agreement between the state and the Commissioner of Social Security entered into under this subchapter; (5) “Modification” means an amendment to the original federal-state agreement to extend coverage to groups of additional employee classifications consistent with the provisions of section 218 of the Social Security Act, 42 U.S.C. § 301 et seq., and this subchapter; (6) “Political subdivision” means an instrumentality of the state, of one (1) or more of its political subdivisions, or of the state and one (1) or more of its political subdivisions, but only if its instrumentality is a juristic entity which is legally separate and distinct from the state or subdivision and only if its employees are not, by virtue of their relation to the juristic entity, employees of the state or subdivision; (7) “Section 218 agreement” means the federal-state agreement between the Commissioner of Social Security and the State of Arkansas entered into December 20, 1951, as authorized by the Social Security Enabling Act for the purpose of extending coverage under Title II of the Social Security Act, 42 U.S.C. § 301 et seq.; (8) “Social Security Act” means the Act of Congress approved August 14, 1935, Chapter 531, 49 Stat. 620, officially cited as the “Social Security Act”, as amended, including regulations and requirements issued pursuant thereto; and (9) [Repealed.] (10) “Wages” means all remuneration for employment as defined in subdivision (4) of this section, including the cash value of all remuneration paid in any medium other than cash.

Ark. Code Ann. § 24-1-203 Rules.

The Arkansas Public Employees' Retirement System shall make and publish rules not inconsistent with the provisions of this subchapter it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this subchapter.

Ark. Code Ann. § 24-1-204 Agreements with federal government and other states.

(a) The Arkansas Public Employees' Retirement System is authorized to enter, on behalf of the state, into a Section 218 agreement consistent with the terms and provisions of this subchapter, with the Commissioner of Social Security for the purpose of extending the benefits of the federal old age, survivors' and disability insurance, and health insurance coverage to employees of the state, or any political subdivision of the state, with respect to services specified in the Section 218 agreement which constitute employment as defined in § 24-1-202. This Section 218 agreement may contain provisions relating to coverage, benefits, effective date, modification of the Section 218 agreement, administration, and such other matters as the system and the commissioner shall agree upon, but, except as may be otherwise required by or under the Social Security Act, 42 U.S.C. § 301 et seq., as to the services to be covered, the Section 218 agreement shall provide, in effect, that: (1) Benefits will be provided for employees whose services are covered by the Section 218 agreement, as well as for their dependents and survivors, on the same basis as though the services constituted employment within the meaning of Title II of the Social Security Act, 42 U.S.C. § 301 et seq.; (2) The employer shall pay to the Internal Revenue Service, at such time or times as may be prescribed under the Social Security Act, 42 U.S.C. § 301 et seq., contributions with respect to wages, as defined in § 24-1-202, equal to the sum of the taxes levied by that Social Security Act; (3) All services which constitute employment as defined in § 24-1-202 and are performed in the employ of the state by employees shall be covered by the Section 218 agreement; and (4) All services shall be covered by the Section 218 agreement which: (A) Constitute employment as defined in § 24-1-202; (B) Are performed in the employ of a political subdivision; and (C) Are covered by a plan which is in conformity with the terms of the Section 218 agreement and has been approved by the system under § 24-1-205. (b) The system is authorized to enter, on behalf of the state, into an agreement with the appropriate agency or agencies of any other state and with the Commissioner of Social Security, whereby the benefits of the federal old age, survivors' and disability insurance, and health insurance coverage shall be extended to employees of any instrumentality jointly created by this state and any other state or states. To the extent practicable, the agreement shall be consistent with the terms and provisions of subsection (a) of this section and other provisions of this subchapter.

Ark. Code Ann. § 24-1-205 Plans for employees of political subdivisions.

Each political subdivision of the state is authorized to submit for approval by the Arkansas Public Employees' Retirement System a plan for extending the benefits of Title II of the Social Security Act, 42 U.S.C. § 301 et seq., in conformity with the applicable provisions of that act, to employees of the political subdivisions. Each plan, and any amendment to it, shall be approved by the system if it finds that the plan, or plan as amended, is in conformity with such requirements as are provided in rules of the system, except that no plan shall be approved unless: (1) It is in conformity with the requirements of the Social Security Act, 42 U.S.C. § 301 et seq., and with the Section 218 agreement entered into under § 24-1-204; (2) It provides that all services which constitute employment as defined in § 24-1-202 and are performed by the employees of a political subdivision shall be covered by the plan; (3) It specifies the sources from which the funds necessary to make the payments required by § 24-1-208(a)(1) and § 24-1-208(b) are expected to be derived and contains reasonable assurance that the sources will be adequate for that purpose; (4) It provides for methods of administration of the plan by the political subdivision as are found by the system to be necessary for the proper and efficient administration of the plan; and (5) It provides that the political subdivision shall make reports in such form and containing such information as the system may require and shall comply with the provisions as the system or the Commissioner of Social Security may find necessary from time to time to assure the correctness and verification of reports.

Ark. Code Ann. § 24-1-206 Agents.

(a) For the purpose of entering into agreements with the Arkansas Public Employees' Retirement System, the following named officers are authorized and empowered to make the agreement on behalf of their agency or political subdivision: (1)(A)(i) The board of control of each state institution or agency having a board or the administrative head of each state department. (ii) The board of control shall have authority to designate an agent to represent the agency over which it has control. (B) In the case of state agencies which do not have a board of control, the chief administrative officer shall act as the contracting officer for the agency; (2) The county judge of each county entering into an agreement with the system shall make and enter of record a county court order approving the agreement with the system and shall designate the county clerk as the agent of the county to deal with the system; (3) The city council of each municipality is authorized to approve the agreement with the system and shall adopt an ordinance designating the city clerk or recorder to represent the municipality; and (4) The board of directors of each school district shall have authority to approve the agreement with the system and shall designate the county school supervisor or the local superintendent of each school district to deal with the system. (b) In complying with the provisions of this subchapter, each political subdivision which qualifies to participate in the Social Security plan shall be required as a part of its agreement with the system to designate an agent to represent the political subdivision in all matters affecting the administration of the plan. (c) All agents provided for under the provisions of this subchapter who represent the state or a local subdivision in connection with the enforcement of this subchapter shall receive no additional remuneration or emolument of their offices in connection with the administration of this subchapter.

Ark. Code Ann. § 24-1-207 Contributions — State employees.

(a) Every employee of the state whose service is covered by a Section 218 agreement entered into under § 24-1-204 shall be required to pay contributions, for the period of the coverage, with respect to wages as defined in § 24-1-202, equal to the amount of tax levied under the Social Security Act, 42 U.S.C. § 301 et seq. This liability shall arise in consideration of the employee's retention in the service of the state, or his or her entry upon such service. (b) The contributions imposed by this section shall be collected by deducting the amount of the contributions from wages as and when paid, but failure to make the deduction shall not relieve the employee from liability for his or her contributions. (c) If more or less than the correct amount of the contributions imposed by this section is paid or deducted with respect to any remuneration, proper adjustments, or a refund if an adjustment is impracticable, shall be made, without interest, in such manner and at such times as the Arkansas Public Employees' Retirement System shall prescribe.

Ark. Code Ann. § 24-1-208 Contributions — Employees of political subdivisions.

(a)(1) Each political subdivision as to which a plan has been approved under § 24-1-205, with respect to wages as defined in § 24-1-202 and at such time or times as the Arkansas Public Employees' Retirement System may by rule prescribe, shall pay contributions in the amounts and at the rates specified in the applicable Section 218 agreement entered into by the system under § 24-1-204. (2)(A)(i) Each political subdivision required to make payments under subdivision (a)(1) of this section, in consideration of the employee's retention in, or entry upon, employment, is authorized to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to the employee's wages as defined in § 24-1-202. (ii) This amount shall not exceed the amount of tax which would be imposed by the Social Security Act, 42 U.S.C. § 301 et seq. (B) The political subdivision is authorized to deduct the amount of the contribution from the employee's wages as and when paid. (C) Failure to deduct the contribution shall not relieve the employee or employer of liability for the payments. (b) Delinquent payments due under subdivision (a)(1) of this section may be recovered with interest at the rate of six percent (6%) per annum by an action in a court of competent jurisdiction against the political subdivision liable for the payments or at the request of the system, may be deducted from any other moneys payable to the subdivision by any department or agency of the state.

Ark. Code Ann. § 24-1-213 Studies and reports.

(a) The Arkansas Public Employees' Retirement System shall make studies concerning the problem of old age, survivors' and disability insurance, and health insurance protection for employees of the state and its political subdivisions and studies concerning the operation of agreements made and plans approved under this subchapter. (b) The system shall submit a report at the beginning of each regular session covering the administration and operation of this subchapter during the preceding two (2) fiscal years and including such recommendations and amendments to this subchapter as it considers proper.

Ark. Code Ann. § 24-1-301 Definitions.

As used in this subchapter: (1) “Beneficiary” means an individual who receives or is designated by a member or retirant to receive a plan benefit under a retirement system; and (2) “Retirement system” means: (A) The Arkansas Teacher Retirement System, established by the Arkansas Teacher Retirement System Act, § 24-7-201 et seq.; (B) The Arkansas State Highway Employees' Retirement System, established by § 24-5-103; (C) The Arkansas Public Employees' Retirement System, established by § 24-4-103; (D) The State Police Retirement System, established by § 24-6-203; (E) The Arkansas Judicial Retirement System, established by § 24-8-201 et seq.; (F) An alternate retirement plan for: (i) A college, university, or the Division of Higher Education provided for under § 24-7-801 et seq.; and (ii) A vocational-technical school or the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development, provided for under § 24-7-901 et seq.; (G) The Arkansas Local Police and Fire Retirement System provided for under § 24-10-101 et seq.; and (H) A firemen's relief and pension fund or a policemen's pension and relief fund provided for under § 24-11-101 et seq.

Ark. Code Ann. § 24-1-302 Forfeiture of benefits.

(a)(1) A beneficiary forfeits his or her right to benefit payments under a retirement system if he or she: (A) Is convicted by a court of competent jurisdiction of the unlawful killing of the member or retirant; (B) Pleads guilty or nolo contendere to the unlawful killing of the member or retirant; (C) Is found liable by a court of competent jurisdiction for the unlawful killing of the member or retirant by a preponderance of the evidence in a civil action; (D) Is acquitted by a court of competent jurisdiction for the unlawful killing of the member or retirant by reason of insanity, mental defect or disease, or any other mental incapacity; or (E) Is found by a court of competent jurisdiction to lack the capacity to understand or effectively assist in defending a criminal proceeding against him or her for the unlawful killing of the member or retirant. (2) If a retirement system finds that a beneficiary has forfeited his or her right to benefit payments from the retirement system under subdivision (a)(1) of this section, the retirement system shall treat the beneficiary as if he or she is deceased and shall not make benefit payments to the beneficiary. (b)(1) If a beneficiary appeals his or her conviction for an offense described under subdivision (a)(1) of this section, benefit payments shall not be paid to the beneficiary unless the appeal results in a reversal of the conviction. (2)(A) If the conviction of a beneficiary for an offense described under subdivision (a)(1) of this section is reversed, the retirement system may make benefit payments to the beneficiary. (B) If the conviction of a beneficiary for an offense described under subdivision (a)(1) of this section is affirmed, the retirement system shall not make benefit payments to the beneficiary. (c) If a member or retirant does not have a contingent beneficiary who may receive benefit payments under this section, the member or retirant's contributions to the retirement system shall be refunded to the estate of the member or retirant.

Ark. Code Ann. § 24-1-303 Suspension of benefit payments.

(a) A retirement system may suspend benefit payments to a beneficiary if the retirement system: (1) Receives the written notice required under § 24-1-304 from a prosecuting attorney; or (2) Has reasonable cause to believe that the beneficiary will be charged with the unlawful killing of the member or retirant. (b) If benefit payments are suspended under this section, the suspension shall continue until: (1) A final adjudication of the criminal or civil proceeding; or (2)(A) The retirement system receives written confirmation from the prosecuting attorney that the beneficiary will not be charged with the unlawful killing of the member or retirant. (B) The retirement system shall request written confirmation from the prosecuting attorney stating that the beneficiary will not be charged with the unlawful killing of the member or retirant.

Ark. Code Ann. § 24-1-304 Notice to retirement system.

(a) A prosecuting attorney shall send written notice by certified mail, return receipt requested, to the executive director or executive secretary of the applicable retirement system when a beneficiary: (1) Is charged with an offense described under § 24-1-302; or (2)(A) Will not be charged with an offense described under § 24-1-302. (B) If the prosecuting attorney receives a request under § 24-1-303 from a retirement system and a decision on whether the beneficiary will be or will not be charged with an offense described under § 24-1-302 has not been made, the prosecuting attorney shall notify the retirement system that a decision is pending. (b) The clerk of the court in which the proceeding against the beneficiary is being conducted shall send written notice by certified mail, return receipt requested, to the executive director or executive secretary of the applicable retirement system when: (1) A beneficiary is convicted of an offense described under § 24-1-302; (2) A beneficiary appeals his or her conviction for an offense described under § 24-1-302; and (3) The appellate court issues a final ruling upholding or reversing the conviction of the beneficiary for an offense described under § 24-1-302. (c) A written notice required under this section shall include any information that the applicable retirement system determines necessary for the retirement system to identify the account of the member or retirant and implement this subchapter.

Ark. Code Ann. § 24-1-305 Notice to beneficiary.

(a)(1) The executive director or executive secretary of the applicable retirement system or his or her designee shall notify a beneficiary when benefits shall not be paid as provided under § 24-1-302. (2) The notice provided under subdivision (a)(1) of this section shall advise the beneficiary of: (A) The specific facts supporting the retirement system's nonpayment of benefits; and (B) His or her right to request a waiver of the forfeiture before the board of trustees of the retirement system. (b)(1) A beneficiary shall request a waiver of the forfeiture by the board of trustees of the retirement system within thirty (30) days of receiving the notice required under subsection (a) of this section. (2) A waiver request made under subdivision (b)(1) of this section shall be submitted to the board of trustees of the retirement system in the manner specified by the applicable retirement system. (c) Upon receiving a waiver request submitted under subdivision (b)(1) of this section, the board of trustees of the retirement system shall set and notify the beneficiary of the waiver hearing date.

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