HB1348
To Amend The Law Concerning Survivor Benefits For The Dependent Child Of A Member Of The Arkansas Public Employees' Retirement System Or A Member Of The State Police Retirement System; And To Declare An Emergency.
AI-Generated Summary
This bill proposes amendments to the Arkansas Public Employees' Retirement System and the State Police Retirement System concerning survivor benefits for dependent children. The primary change is to extend the age at which a child is considered dependent from eighteen to twenty-three years old. This extension applies as long as the child is continuously enrolled as a full-time student in an accredited secondary school, college, or university. The age limit will also be extended indefinitely for children deemed physically or mentally incompetent by a court or the respective retirement system's Board of Trustees, for as long as the incompetency exists. These changes apply to the Arkansas Public Employees' Retirement System and both Tier One and Tier Two benefit plans of the State Police Retirement System. The bill includes an emergency clause to declare that these changes are necessary for the proper administration and protection of benefits, with an effective date of July 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the dependent children of deceased members of the Arkansas Public Employees' Retirement System and the State Police Retirement System. Specifically, children who are pursuing full-time education beyond the age of eighteen will be able to receive survivor benefits for a longer period, up to age twenty-three. Additionally, children who are deemed physically or mentally incompetent will continue to receive benefits for the duration of their condition, regardless of age. This extension aims to provide continued financial support for these eligible children.
Who Might Suffer?
This bill could potentially negatively impact the retirement systems themselves by increasing the duration and scope of benefit payouts. While the bill states the revisions are for streamlining and protecting benefits, extending the age for dependent children's benefits may lead to increased long-term liabilities for the Arkansas Public Employees' Retirement System and the State Police Retirement System. The financial impact on these systems would depend on the number of children who qualify for the extended benefits and the associated costs. The emergency clause suggests a need for immediate action for actuarial purposes, implying a potential financial consideration for the systems.