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HB 1341

RELATING TO INSURANCE.

2025 Regular Session Introduced by David Alcos and 6 co-sponsors

House Bill 1341 clarifies how "pay" is defined for retirement benefits, impacting Arkansas police and fire members by ensuring consistent compensation calculations.

Carried over to 2026 Regular Session.
#condominiums #hurricaneinsurance #insurer #taxcredit
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Bill Summary · HB 1341

Summary of House Bill 1341: Relating to Insurance

Bill Number: HB 1341
Introduced: January 30, 2025
Status: Referred to ECD, CPC, FIN
Classification: Bill
Subject: Condominiums, Hurricane Insurance, Insurer, Tax Credit

Purpose and Intent

House Bill 1341 aims to amend existing laws concerning the Arkansas Local Police and Fire Retirement System. The primary focus of the bill is to redefine the term "pay" as it relates to benefits under this retirement system, ensuring clarity and consistency in how compensation is calculated for active members.

Key Provisions

The bill includes several significant amendments:

  1. Definition of "Pay":

    • The bill redefines "pay" to mean the recurring remuneration paid to an employee for personal services rendered in a position covered by the retirement system.
    • The definition specifies that "pay" shall not exceed the amount required for federal income tax reporting.

  2. Exclusions from Pay Calculation:

    • The bill outlines specific types of payments that will not be considered in determining "pay":
      • Special single-sum payments made by an employer.
      • Employer contributions to any employee benefit plan.
      • Any unusual or nonrecurring remuneration.

  3. Temporary Workers' Compensation:

    • Active members receiving temporary workers' compensation benefits for injuries or illnesses incurred during covered employment may remit these benefits to their employer.
    • Employers are required to report the total payments to the retirement system, ensuring that reported pay does not exceed what the member would have earned without the compensation.

  4. Annual Compensation Limitations:

    • The bill states that any annual compensation exceeding the limits set by the Internal Revenue Code will be disregarded in the calculation of "pay."

Impact

  • Who is Affected:
    • The amendments primarily impact active members of the Arkansas Local Police and Fire Retirement System, as well as their employers.
    • The changes aim to provide a clearer framework for calculating retirement benefits, which could affect the financial planning of current and future retirees.

Legislative Timeline

  • January 30, 2025: Bill filed and read for the first time.
  • March 31, 2025: Amendments adopted, and the bill was reported correctly engrossed.
  • April 7, 2025: Passed by the House and sent to the Senate.
  • April 8, 2025: Passed by the Senate and ordered to be enrolled.
  • April 10, 2025: Notification that HB 1341 is now Act 522.

This summary provides an overview of House Bill 1341, highlighting its purpose, key provisions, and the potential impact on stakeholders involved in the Arkansas Local Police and Fire Retirement System.

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

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