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HB 1063

AN ACT FOR THE ARKANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

2026 Fiscal Session

Funds totaling $904,380,859 across APERS, State Police, and Judicial Retirement Funds are allocated for operations, benefits, refunds, and admin system needs for FY 2026-27, effect

Notification that HB1063 is now Act 55
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WeVote Research Nonpartisan
Bill Summary · HB 1063

Summary of HB 1063 (2026F) – Arkansas Public Employees Retirement System Appropriation for 2026-2027

Purpose and intent

  • HB 1063 is an appropriation bill establishing funding for the Arkansas Public Employees Retirement System (APERS) for the fiscal year ending June 30, 2027.
  • The act covers personal services, operating expenses, and various benefit and transfer provisions related to APERS and its related retirement funds (State Police Retirement Fund and Judicial Retirement Fund) within the same administration.

Key provisions and changes

Section 1 – Regular salaries

  • Sets the maximum number of regular employees for APERS for FY 2026-2027 at 78 full-time positions, listing specific job titles, codes, and salary grade levels (from Retirement System Director to various accounting, IT, HR, and retirement counselor roles).
  • Establishes a salary structure by itemized classifications with corresponding grade levels (e.g., Executive/executable grades like EXE03 for the Retirement System Director, SPC10 for Investment Director, various SPC and SGS grades for staff).

Section 2 – Extra help

  • Authorizes up to 6 temporary/part-time employees (Extra Help) for FY 2026-2027, paid from APERS funds, with pay rates governed by the Uniform Classification and Compensation Act or this act.

Section 3 – APERS Operations (Personal Services and Operating)

  • Appropriates a total of $142,740,859 for APERS Operations for FY 2026-2027, broken down as:
    • Regular salaries: $4,773,961
    • Extra Help: $75,000
    • Personal Services Matching: $1,686,925
    • Maintenance & General Operations (Operating Expenses): $2,137,473
    • Operating Expenses: $2,137,473
    • Conference & Travel: $67,500
    • Professional Fees: $2,000,000
    • Capital Outlay: $0
    • Data Processing: $0
    • Benefits — Non-Employee: $40,000,000
    • Refunds/Reimbursements: $85,000,000
    • Data Processing Services: $7,000,000
  • Total: $142,740,859

Section 4 – APERS Cash (Beneficiary Payments)

  • Appropriates $725,000,000 total for beneficiaries via cash funds for FY 2026-2027, comprised of:
    • Benefits: $675,000,000
    • Refunds/Reimbursements: $50,000,000

Sections 5–8 – Separate Retirement Funds (State Police and Judicial)

  • State Police Retirement Fund (Operations and Cash):

    • Operations: Includes operating expenses, professional fees, and a modest data processing component.
    • Benefits-NON EMPLOYEE: $5,000,000
    • Refunds/Reimbursements: $25,000,000
    • Cash: Benefits $31,000,000; Refunds/Reimbursements $1,500,000
    • Total for State Police segments: $32,500,000 (cash) + related operations

  • Judicial Retirement Fund (Operations and Cash):

    • Operations: Operating expenses, professional fees, and data processing.
    • Benefits-NON EMPLOYEE: $500,000
    • Refunds/Reimbursements: $8,000,000
    • Cash: Benefits $20,750,000; Refunds/Reimbursements $250,000
    • Total for Judicial segments: $8,652,879 (operations) and $21,000,000 (cash)

Sections 9–13 – Special Language

  • Transfers and exemptions:
    • Judicial, State Police, and Judicial-related transfers may be used to support costs of administering the pension systems and the pension administration system (with dollar caps and sunset provisions):
    • Judicial Fund transfers to APERS: up to $150,000 (FY 2025-2026 through 2026-2027)
    • State Police Fund transfers to APERS: up to $250,000 (FY 2025-2026 through 2026-2027)
    • Exemption from prior review for certain transfers related to retirees’ benefit payment method changes
    • Special transfers for the purchase and operation of a new pension administration system:
    • Not to exceed $50,000 from the State Police Retirement Fund to APERS for the system, sunset after FY 2026-2027
    • Not to exceed $50,000 from the Judicial Retirement Fund to APERS for the same purpose, sunset after FY 2026-2027

Sections 14–15 – Compliance and Legislative Intent

  • Ensures funds are disbursed in accordance with applicable laws and procedures.
  • Legislative intent to align disbursements with budget manuals and related materials.

Section 16 – Emergency Clause

  • Declares the act an emergency measure, making it effective July 1, 2026, to avoid harm to essential governmental operations if the session is extended or delayed.

Who/What is affected

  • Arkansas Public Employees Retirement System (APERS) and its operations for FY 2026-2027
  • Beneficiaries receiving retirement benefits from APERS, State Police Retirement System, and Judicial Retirement System
  • APERS staff and contractors (as defined by the authorized regular positions and extra help)
  • Related funds and administration systems, including potential capital investments in a new pension administration system
  • Transfers among the Judicial, State Police, and APERS funds to support administration and system costs

Timeline and notable dates

  • Effective date: July 1, 2026 (emergency clause ensures immediate effect upon enactment)
  • Fiscal year covered: July 1, 2026 – June 30, 2027
  • Special transfer and system-purchase provisions are set to sunset after June 30, 2027 (for certain transfers related to the new pension administration system)

Overall assessment

  • The bill provides a comprehensive funding package for APERS and the related retirement funds, detailing staffing, operating expenses, and large-scale benefit payments for the 2026-2027 fiscal year.
  • It also includes targeted transfers to support administrative costs and a new pension administration system, with sunset provisions and exemptions from some prior review processes for specific transfers.
  • The emergency clause accelerates effectiveness to ensure uninterrupted administration of retirement benefits.

Compiled from official sources — confirm details with the bill’s official record.

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