HB1208
To Allow The Arkansas Public Employees' Retirement System To Collect Amounts Of Overpayments For Debts Owed To A State Supported Retirement System Administered By The Arkansas Public Employees' Retirement System.
AI-Generated Summary
This bill proposes to amend Arkansas law to grant the Arkansas Public Employees' Retirement System (APERS) enhanced authority to collect overpayments made to individuals receiving benefits from state-supported retirement systems administered by APERS. Specifically, it seeks to include the Arkansas Judicial Retirement System and the State Police Retirement System as "claimant agencies" for the purpose of setting off debts against state tax refunds. The bill defines "debt" to encompass any overpayment of a monthly benefit or lump sum from a state retirement system managed by APERS. This legislative action aims to provide APERS with a more robust mechanism to recover funds that were erroneously disbursed to retirees. The intention is to ensure the financial integrity of these retirement systems by addressing outstanding overpayments. The proposed changes expand the scope of existing setoff provisions to facilitate debt recovery for these additional retirement systems.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the Arkansas Public Employees' Retirement System (APERS) and the retirement systems it administers. By enabling APERS to collect overpayments and use state tax refunds as a mechanism for debt recovery, the bill would allow these retirement systems to recoup funds that were erroneously disbursed. This could lead to improved financial stability for APERS and the other included retirement systems, potentially benefiting current and future beneficiaries of these systems by ensuring sufficient funds are available for pension obligations. The State of Arkansas, through its tax collection agency, would also benefit from the recovery of debts owed to its retirement programs.
Who Might Suffer?
The primary entities that could be negatively impacted by this bill are individuals who have received overpayments from the Arkansas Public Employees' Retirement System, the Arkansas Judicial Retirement System, or the State Police Retirement System. If this bill becomes law, these individuals would be subject to having their state tax refunds intercepted to repay any such overpayments. This could result in a reduction or complete loss of expected tax refunds, potentially causing financial hardship for those who rely on those funds. The bill does not specify any provisions for hardship exemptions or repayment plans for individuals unable to repay the overpayments immediately.