HB1325 Summary

• Amends Arkansas Code § 24-2-401 to add definitions for "member," "retirement benefit," and "service credit" in the context of public employment retirement systems.

• Modifies § 24-2-402 to clarify that members may combine deferred service credit from multiple reciprocal retirement systems to establish eligibility for benefits, but combined service credit cannot be used to calculate the actual monthly retirement benefit amount.

• Establishes that monthly retirement benefits are calculated separately using only the service credit earned in each individual retirement system, and prohibits using service credit from one reciprocal system to increase benefits from another system.

• Provides special rules for final average compensation calculations, including exceptions for Arkansas Judicial Retirement System compensation and provisions allowing members with multiple reciprocal system credits earned before June 30, 2021, to use the highest final average compensation available.

• Declares an emergency effective date of July 1, 2021, to align with the state fiscal year and ensure proper administration of reciprocal service credit procedures.