Senate Bill 5 Summary

• Amends Arkansas Code § 24-10-507 to require members to vest in the Arkansas Local Police and Fire Retirement System before reciprocal service credit from other systems can be used to establish eligibility for voluntary retirement, early retirement, or duty death benefits.

• Specifies that final average pay from reciprocal systems furnishing the highest final average pay may be used if the member established reciprocity before April 1, 2021, and has member contributions on account with the system.

• Amends Arkansas Code § 24-10-616 to clarify that pension benefits are protected from execution, garnishment, attachment, bankruptcy, and legal claims, but allows employers right of setoff for embezzlement or fraud claims.

• Amends Arkansas Code § 24-10-706(d)(2) to change the deadline for distribution of deferred retirement plan funds from December 31 of the year a participant reaches age 70½ to April 1 of the year following when the participant reaches age 72.

• Declares an emergency and makes the act effective April 1, 2021, citing the need to update statutes concerning reciprocal service credit, benefit rights, and deferred retirement to provide clarity and conform with public pension policy.