AR SB143

Adds definition of "manifest injustice" to Arkansas Code § 24-6-201 as obvious unfairness with direct and observable unconscionable effect resulting from a technical or judgment error made by the system, benefit participant, or employer.

Allows the Board of Trustees of the State Police Retirement System to waive or modify rules, provisions, or laws that do not violate federal law or jeopardize the tax-qualified status of the system to correct or prevent manifest injustice.

Requires the system to consider six factors when determining manifest injustice: degree of fault, ambiguity in interpretation, cost-benefit analysis of correction, whether expedited decision serves public interest, fundamental fairness of remedy, and whether status quo would result in unconscionable outcome.

Applies retroactively to January 1, 2017.