HB1210
To Amend The Laws Concerning Transfer Of Funds For The Costs Of Administering The Arkansas Judicial Retirement System And The State Police Retirement System.
AI-Generated Summary
This bill proposes to amend existing Arkansas law concerning the transfer of funds for the administration of the Arkansas Judicial Retirement System and the State Police Retirement System. Specifically, it aims to allow for moneys from these respective retirement funds to be transferred to the Arkansas Public Employees' Retirement System (APERS). This transfer is intended to cover the costs incurred by APERS for the administration and management of both the Judicial and State Police Retirement Systems. The calculation for the transferred sum is based on a weighted average of the retirement systems' pro-rata percentage of total invested assets and total membership, relative to APERS' total administrative costs. This change is set to take effect beginning July 1, 2027. The bill also clarifies existing provisions regarding the disbursement and use of funds within the Judges Retirement Fund and the State Police Retirement Fund.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the Arkansas Public Employees' Retirement System (APERS) and its administrative staff. By authorizing the transfer of funds from the Judicial and State Police Retirement Funds, APERS would receive financial resources to cover the costs associated with administering these two systems. This could lead to improved administrative capacity and potentially more streamlined operations for APERS. Additionally, the members of the Arkansas Judicial Retirement System and the State Police Retirement System might indirectly benefit from more efficient administration of their respective funds, though the bill's focus is on the administrative transfer.
Who Might Suffer?
The groups potentially negatively impacted by this bill are the current and future beneficiaries of the Arkansas Judicial Retirement System and the State Police Retirement System. The bill authorizes the transfer of funds from these retirement systems to cover administrative costs. If these administrative costs are substantial or if the calculation methods result in significant diversions, it could potentially reduce the amount of funds available for investment and, consequently, the long-term growth of the retirement funds. This could, in turn, lead to lower future benefit payouts for retirees or necessitate increased contributions in the future to maintain solvency.