AR SB86

Creates mandatory reserve balance requirements for the State and Public School Life and Health Insurance Program with a target optimal reserve of 14% beginning in plan year 2023

Establishes minimum acceptable reserve balances of 12% for both state employees and public school employees, with Director of Employee Benefits Division responsible for achieving and maintaining these levels

Requires Director to annually calculate projected reserve balances by April 30 and submit plans to Legislative Council for approval; if reserve falls below 12%, Director must notify Legislative Council to consider providing additional funding

If General Assembly fails to provide funding by July 30, Director must collect additional revenue through premium rate increases or benefit reductions for the next plan year

Allows Director to lower premium rates or expand benefits if reserve balance exceeds 16%, subject to Legislative Council approval; declares an emergency to make the act effective immediately upon gubernatorial approval or signing deadline