AR SB181

Beginning in fiscal year 2012, actuaries shall annually compute employer contribution rates for each paid service employer based on the benefit costs of participating employees as determined by board policy.

Prior service credit or volunteer service shall not be certified under the Local Police and Fire Retirement System beginning January 1, 2012.

Creates a new additional allocation for underfunded pension and relief funds beginning fiscal year 2012, phased in to replace the Arkansas Fire and Police Pension Guarantee Fund after fiscal year 2015, with allocations based on actuarial costs for qualifying funds.

Modifies insurance premium tax allocation formulas beginning fiscal year 2012, directing 40% of total actuarial costs for Arkansas Local Police and Fire Retirement System groups plus 100% of volunteer costs less employer contributions, plus 30% of consolidation and local pension fund costs.

Establishes limits on allocation amounts through factors applied to different groups: 40% factor for groups in the Arkansas Local Police and Fire Retirement System and 30% factor for groups covered by local pension and relief funds, with general revenue floor of $3,000,000.