HB1304
To Set A Limitation Period For The Correction Of Errors Under The Arkansas Public Employees' Retirement System And The State Police Retirement System.
AI-Generated Summary
This bill amends provisions related to the Arkansas Public Employees' Retirement System (APERS) and the State Police Retirement System (SPRS). It mandates that members, retirees, and designated beneficiaries must provide and update their contact information, including physical addresses, phone numbers, email addresses, and bank details. The bill establishes a five-year limitation period for the system to make payments to a member, retiree, or beneficiary if they become unreachable after notification. If after five years of non-responsiveness and failed attempts to contact, any due amount can be transferred to the system's general trust assets and removed from liabilities. However, individuals can still reclaim these funds by providing required documentation. The bill also modifies the statute of limitations for correcting errors within both retirement systems. For APERS, overpayments can generally only be recovered if notified within one year of the last overpayment, unless the error resulted from fraud or intentional misrepresentation. For SPRS, a similar limitation period is set for recouping overpayments, with exceptions for intentional misconduct. The bill defines a "limitation period" for error correction as the fiscal year the error occurred plus the four subsequent fiscal years. It also grants discretion to the executive directors of both systems to resolve errors equitably under certain conditions, prioritizing fairness and avoiding substantial impact on actuarial soundness or federal tax-qualified status.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are the Arkansas Public Employees' Retirement System (APERS) and the State Police Retirement System (SPRS), and by extension, their participating employers. By establishing clearer procedures for contact information management and defining limitation periods for error correction and unclaimed funds, the systems can improve administrative efficiency, reduce long-term liabilities associated with untraceable beneficiaries, and potentially enhance actuarial accuracy. The bill also creates mechanisms for members, retirees, and beneficiaries to reclaim funds that might otherwise be considered lost, provided they meet the specified conditions.
Who Might Suffer?
Individuals who are unable or unwilling to maintain up-to-date contact information with the retirement systems, or those who may face difficulties in providing the required documentation within the stipulated timeframes, could be negatively impacted. Specifically, if a member, retiree, or beneficiary becomes unreachable for five years, their due payments could be transferred to the general trust assets of the system, and while reclaimable, they would not receive any interest. Furthermore, the establishment of limitation periods for error correction, particularly for overpayments, means that individuals may not be able to recover funds lost due to system errors if they do not report or are not notified of the error within the specified one-year window for APERS, unless fraud or intentional nondisclosure is proven. Similarly, the SPRS also institutes a limitation period for overpayment recovery, potentially limiting recourse for recipients.