§ 24-11-209 - Arkansas Fire and Police Pension Guarantee Fund.
24-11-209. Arkansas Fire and Police Pension Guarantee Fund.
(a) The Arkansas Fire and Police Pension Guarantee Fund shall be created and established for the purpose of providing a state fund to provide financial assistance to certain municipal fire and police pension funds established under 14-52-106, 24-11-401 -- 24-11-403, 24-11-405 -- 24-11-413, 24-11-416, 24-11-417, 24-11-422, 24-11-423, 24-11-425, 24-11-428 -- 24-11-430, 24-11-801 -- 24-11-807, 24-11-809, 24-11-810, 24-11-813 -- 24-11-815, and 24-11-818 -- 24-11-821.
(b) (1) Some of the municipal fire and police pension funds established under 14-52-106, 24-11-401 -- 24-11-403, 24-11-405 -- 24-11-413, 24-11-416, 24-11-417, 24-11-422, 24-11-423, 24-11-425, 24-11-428 -- 24-11-430, 24-11-801 -- 24-11-807, 24-11-809, 24-11-810, 24-11-813 -- 24-11-815, and 24-11-818 -- 24-11-821, may run out of funds before all of the promised benefits have been paid to their members, retirants, and beneficiaries.
(2) The Arkansas Fire and Police Pension Guarantee Fund may assist the municipal funds, in accordance with the following:
(A) A municipal fire or police pension fund may receive financial assistance from the Arkansas Fire and Police Pension Guarantee Fund if the assistance is approved by the Arkansas Fire and Police Pension Review Board and if the fund complies with subdivision (b)(2)(B) of this section;
(B) If a municipal fire or police pension fund is to receive financial assistance from the Arkansas Fire and Police Pension Guarantee Fund, then:
(i) The municipal fire or police pension fund must apply in writing for financial assistance to the Arkansas Fire and Police Pension Guarantee Fund;
(ii) Upon receipt of the application, the Arkansas Fire and Police Pension Review Board shall notify the board of trustees of the fund, in writing, that the fund will receive financial assistance from the Arkansas Fire and Police Pension Guarantee Fund if all of the provisions of this subdivision (b)(2)(B) are met;
(iii) In order to receive any financial assistance from the Arkansas Fire and Police Pension Guarantee Fund, the local fund must be receiving a dedicated millage of one (1) mill;
(iv) Any benefits, including refunds of active member contributions to terminating members, due after the date the local fund is receiving assistance from the Arkansas Fire and Police Pension Guarantee Fund, shall not exceed the minimum amount provided by law;
(v) The Arkansas Fire and Police Pension Review Board may review the medical condition of all persons receiving a disability pension from the local fund. If the Arkansas Fire and Police Pension Review Board finds that a person receiving a disability pension from the local fund is no longer disabled, and as a result is no longer entitled to a disability pension, the person shall no longer receive a benefit from the local fund.
(c) (1) (A) The Arkansas Fire and Police Pension Guarantee Fund shall receive a portion of the taxes levied on insurers for the support of fire and police retirement programs by 23-60-101 et seq. and 24-11-301 -- 24-11-303, 24-11-801 -- 24-11-807, 24-11-809, 24-11-810, 24-11-813, 24-11-818 -- 24-11-821, 26-57-601 -- 26-57-605, and 26-57-607, or any other state fund designated for support of fire and police retirement programs in political subdivisions.
(B) The amount received by the Arkansas Fire and Police Pension Guarantee Fund shall be based upon the taxes that are levied on insurers but are not allocated to cities, towns, or fire protection districts qualified to participate in the distribution of the taxes, and shall be the amount so provided in 24-11-302 and 24-11-809.
(2) If a fire or police retirement program, or the political subdivision supporting a retirement program, does not receive a portion of the taxes levied on insurers for the support of fire and police retirement programs due to 24-11-202, the taxes shall be paid into the Arkansas Fire and Police Pension Guarantee Fund.
(d) The maximum financial assistance that an eligible municipal fire or police pension fund can receive in any year from the Arkansas Fire and Police Pension Guarantee Fund is the remainder, if any, of the amount of the item in subdivision (d)(1) of this section, after subtracting the amount equal to the sum of all the items of subdivision (d)(2) of this section, as follows:
(1) The actuarially recommended contribution for the year, determined as if the fund were providing the minimum benefits required by law; and
(2) (A) Twelve percent (12%) of the covered salaries, or one dollar ($1.00) per month for each volunteer fire fighter;
(B) The dollar amount of the millage that would be produced if one (1) mill was contributed to the plan;
(C) For police pension funds only, ten percent (10%) of fines and forfeitures under 24-11-413(a)(5) in the prior year; and
(D) The amount of state insurance turnback funds allocated to the fund in the prior year.
(e) (1) The Arkansas Fire and Police Pension Review Board shall annually recommend to the Chief Fiscal Officer of the State which pension funds shall receive financial assistance from the Arkansas Fire and Police Pension Guarantee Fund and the amount of the assistance.
(2) The Arkansas Fire and Police Pension Review Board shall take into consideration the amount of income expected by the Arkansas Fire and Police Pension Guarantee Fund when determining the amount of financial assistance available to the local funds and considering whether the local fund would be better served by consolidating into the Arkansas Local Police and Fire Retirement System.
(3) The Arkansas Fire and Police Pension Review Board shall recommend financial assistance from the Arkansas Fire and Police Pension Guarantee Fund according to the following priorities:
(A) Projected insolvent funds which are not expected to have enough funds to provide benefits for the current year;
(B) Projected insolvent funds which are expected to deplete their funds within the next three (3) years;
(C) Projected insolvent funds which are expected to deplete their funds within the next ten (10) years;
(D) Funds that are determined to be actuarially unsound by the Arkansas Fire and Police Pension Review Board; and
(E) Other pension funds covering municipal police officers and fire fighters in Arkansas, without regard to subsection (d) of this section, or without regard to subdivision (b)(2)(B)(iii) of this section for funds administered by the Arkansas Local Police and Fire Retirement System.
(f) The executive director and staff of the Arkansas Fire and Police Pension Review Board shall serve as the executive director and staff of the Arkansas Fire and Police Pension Guarantee Fund.
(g) Any expenses required to administer the Arkansas Fire and Police Pension Guarantee Fund shall be determined and paid by the Arkansas Fire and Police Pension Review Board out of the Arkansas Fire and Police Pension Guarantee Fund.
(h) (1) The Arkansas Fire and Police Pension Review Board shall report to the General Assembly on the condition of the Arkansas Fire and Police Pension Guarantee Fund.
(2) The report shall be due by December 31 of each even-numbered year.
(3) The report shall include the amount of financial assistance provided during the last two (2) years and the expected tax allocation for the next two (2) years.