HB1325
To Allow A Member Of The Arkansas Public Employees' Retirement System To Receive Service Credit From Service Under An Alternate Retirement Plan To Meet Eligibility Requirements.
AI-Generated Summary
This bill proposes to amend the Arkansas Public Employees' Retirement System (APERS) by adding a new subsection concerning credited service. The primary aim is to allow members of APERS to receive service credit from prior service under an alternate retirement plan. This credit can be used to meet eligibility requirements for a retirement benefit under APERS. However, this provision is subject to specific conditions. A member can only receive this credit if they did not vest in the alternate retirement plan. Additionally, they must not have received any payment or withdrawn their contributions from that alternate plan for the period of employment. Before credit is granted, the member must provide documentation verifying these conditions from their former employer and the alternate retirement plan. The Executive Director of APERS will then review this documentation to ensure all requirements are met before crediting the service.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be current or former members of the Arkansas Public Employees' Retirement System who previously participated in an alternate retirement plan but did not vest or withdraw their contributions from that plan. These individuals could potentially have their prior service recognized by APERS, making them eligible for retirement benefits sooner or increasing the amount of their retirement benefit, provided they meet the documentation and verification requirements outlined in the bill.
Who Might Suffer?
The Arkansas Public Employees' Retirement System (APERS) itself is the entity that could be negatively impacted, or at least face increased administrative burden and potential financial implications. The system would need to develop and implement procedures for verifying alternate retirement plan service, which could involve additional staff time and resources for reviewing documentation and making determinations. There is also a potential for increased retirement payouts if more members become eligible for benefits earlier or at a higher tier due to the recognition of this prior service, which could affect the long-term financial solvency of the system if not adequately funded.