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137.00.1-6. Enforcement of Funding Standards

AR ADC 137.00.1-6Arkansas Administrative Code

West's Arkansas Administrative Code
Title 137. Lopfi-Local Police and Fire Retirement System
Division 00.
Rule 1. Arkansas Fire & Police Pension Review Board Rules and Regulations
Ark. Admin. Code 137.00.1-6
137.00.1-6. Enforcement of Funding Standards
Currentness
Employee Contributions
FIRE
Under current law, employees who wish to be covered by local fire pension funds are required to contribute 6% of their gross pay to the Local Plan, or, in the case of volunteers, $12 annually.
A.C.A. 24-11-816 provides that any firefighter who fails or refuses to pay the required contribution shall forfeit the right to receive benefits from the Local Plan. The contribution requirement does not apply to retired members or any active member with 20 years of service.
1. If staff determines that an employee or employees of a Local Plan are not making the required contributions, staff shall notify the chief executive of the employing group by certified mail that the contributions are required and that these employees are no longer eligible for pension benefits, unless the current and past due contributions are made.
The employer shall respond in writing within eight (8) weeks to notify the PRB as to which employees have made their contributions and which employees have chosen to forfeit their rights to coverage.
2. In such cases in which no active employees have made or are making the required contributions, the PRB may make a determination, after eight (8) weeks from notification of the participating employer, that the Local Plan fund is inactive, and may remove the Local Plan from the annual certification list for Premium Tax Turnback.
3. Staff determinations regarding employee contributions shall be made from the annual financial disclosure reports submitted by the Local Plans.
4. If an employee or employees disagree with staff findings regarding employee contributions, the affected party may request, in writing, a hearing before the PRB. The PRB shall schedule the hearing for its next regular meeting but may schedule the hearing for a future meeting if requested by the affected party.
5. Premium Tax Turnback will be withheld from the Local Plan and the sponsoring location, as described in PRB Rule 12, until staff findings are overturned, or the required employee contributions are made or the ineligible employees are removed from the pension rolls.
POLICE
Under current law, all employees who are eligible to be covered by a local police pension plan are required to accept coverage. Employees who are not covered by Social Security are required to contribute 6% of their gross pay to the Local Plan. Employees who are covered by Social Security are required to contribute 4% of their gross pay to the Local Plan unless a majority of the contributing members vote to contribute more than 4%, but the contribution shall not exceed 6%.
1. If staff determines that an employee or employees of a Local Plan are not making the required contributions, staff shall notify the Chief Executive of the employing group by certified mail that the contributions are required.
2. The employer shall respond in writing within eight (8) weeks to notify the PRB that the required contributions are being made.
3. Staff determinations regarding employee contributions shall by made from the annual financial disclosure reports submitted by the Local Plans.
4. If an employee or employees disagree with staff findings regarding employee contributions, the affected party may request, in writing, a hearing before the PRB. The PRB shall schedule the hearing for its next regular meeting but may schedule the hearing for a future meeting if requested by the affected party.
5. Premium Tax Turnback will be withheld from the Local Plan and the sponsoring location, as described in PRB Rule 12, until either staff findings are overturned, or the required employee contributions are made.
EMPLOYER CONTRIBUTIONS
From 1985 forward, employers are required to match all employee contributions.
1. If staff determines that an employer is not making the required contributions, staff shall notify the Chief Executive of the employer group by certified mail that the contributions are required.
2. The employer shall respond in writing within eight (8) weeks to notify the PRB that the required contributions are being made.
3. If the employer does not respond or refuses to make the required contributions, the PRB shall notify the Division of Legislative Audit of the Arkansas General Assembly of the non-compliance, and shall request an audit exception in the next regular audit of the employer's accounts.
4. Staff determinations regarding employer contributions shall be made from the annual financial disclosure reports submitted by the Local Plan.
5. If an employer disagrees with staff findings regarding employer contributions, the employer may request, in writing, a hearing before the PRB. The PRB shall schedule the hearing at their next regular meeting, but may schedule the hearing for a future meeting if so requested by the affected party.

Credits

Adopted Apr. 13, 1983; Amended Mar. 20, 1986. Amended Jan. 1, 2015.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 137.00.1-6, AR ADC 137.00.1-6
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