AR SB239

Adds definition of "manifest injustice" to Arkansas Code § 24-4-101 as obvious unfairness with direct, observable unconscionable effects resulting from technical or judgment errors by the system, benefit participant, or employer, supported by clear and convincing evidence showing great harm to system integrity.

Authorizes the Board of Trustees or its designee to waive or modify rules, provisions, or laws that do not violate federal law or jeopardize the system's tax-qualified status to correct or prevent manifest injustice affecting the system, benefit participants, or employers.

Establishes six factors the system may consider when determining manifest injustice: degree of fault, ambiguity in interpretation, cost-benefit analysis of correction, public interest in expedited decisions, fundamental fairness of remedy, and whether status quo would produce unconscionable outcomes.

Applies retroactively to January 1, 2017.