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2025 Regular Session Introduced by Elle Cochran and 9 co-sponsors

HB 1334 aimed to clarify collection processes for overdue contributions to the Arkansas Public Employees' Retirement System from local government employers, enhancing retirement fund stability.

Reported from HHS (Stand. Com. Rep. No. 1264) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/CPN.

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Bill Information

Bill Number: HB 1334

Title: To Amend the Law Under Title 24, Chapter 4, Subchapter 2 of the Arkansas Code Regarding Delinquent Employer and Employee Contributions to the Arkansas Public Employees' Retirement System by a Local Government Participating Employer.

Status: Died in House Committee at Sine Die adjournment.

Introduced: January 30, 2025

Classification: Bill

Purpose and Intent

House Bill 1334 aimed to amend existing laws concerning the collection of delinquent employer and employee contributions to the Arkansas Public Employees' Retirement System (APERS) specifically from local government employers participating in the system. The intent was to clarify and enhance the processes for addressing delinquency in contributions, ensuring that both employers and employees fulfill their financial obligations to the retirement system.

Key Provisions

Amendment of Existing Law: The bill proposed changes to Title 24, Chapter 4, Subchapter 2 of the Arkansas Code, which governs the contributions to APERS.

Focus on Delinquency: The legislation sought to establish clearer guidelines and procedures for the collection of overdue contributions from local government employers, potentially including penalties or interest for late payments.

Local Government Participation: The bill specifically targeted local government entities that participate in APERS, indicating a focus on the unique challenges these employers may face in meeting their contribution requirements.

Impact

Affected Parties: The primary stakeholders affected by this bill would have been local government employers and their employees who are members of the Arkansas Public Employees' Retirement System.

Retirement System Stability: By addressing delinquent contributions, the bill aimed to enhance the financial stability of APERS, ensuring that funds are available for current and future retirees.

Legislative Actions

January 30, 2025: HB 1334 was filed and read for the first time. The rules were suspended, and it was read a second time before being referred to the Committee on House Journal; Engrossed and Enrolled Bills.

May 5, 2025: The bill died in the House Committee at Sine Die adjournment, meaning it did not progress to a vote or further consideration.

Conclusion

While HB 1334 was introduced with the intent to improve the collection of delinquent contributions to the Arkansas Public Employees' Retirement System, it ultimately did not advance through the legislative process. The proposed amendments would have had significant implications for local government employers and their employees, highlighting the ongoing challenges related to retirement funding and compliance.

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