AR HB1346

Amends the definition of "final average compensation" for the Arkansas Public Employees' Retirement System by referencing a new calculation method in Arkansas Code § 24-4-623.

Establishes a five-year average compensation calculation for members first hired on July 1, 2022, or after, using the average of the five highest annual compensations paid during completed fiscal years.

Maintains the three-year average compensation calculation for members hired before July 1, 2022, using the average of the three highest annual compensations paid during completed fiscal years.

Preserves existing protections for members whose pay is set by Arkansas Constitution Amendment 70, § 1, ensuring their average compensation is not less than their rate of pay at separation or their highest rate of such pay.

Retains protection for General Assembly members on December 31, 1978, ensuring their average compensation is not less than the rate of pay currently set for the highest legislative office held.