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Bill

HB 1341

TO AMEND THE LAW CONCERNING BENEFITS UNDER THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM; AND TO AMEND THE DEFINITION OF "PAY" UNDER THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM.

2025 Regular Session Introduced by Jim Dotson and 1 co-sponsor

Arkansas expands Local Police and Fire Retirement System benefits by broadening "pay" definition for retirement calculations, increasing municipal pension obligations.

Notification that HB1341 is now Act 522
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Bill Summary · HB 1341

Legislative bill overview

HB 1341 amends Arkansas's Local Police and Fire Retirement System by modifying how retirement benefits are calculated and expanding the definition of "pay" that counts toward those benefits. The bill has passed both chambers and been signed into law as Act 522, effective immediately.

Why is this important

Police and firefighter retirement systems directly affect recruitment and retention of emergency personnel, as benefit structures influence whether experienced officers and firefighters remain in service. Changes to how compensation is counted toward retirement can significantly alter the long-term financial obligations of municipalities and may impact the retirement security of these public safety employees.

Potential points of contention

  • Cost implications for municipalities: Expanding what counts as "pay" for retirement calculations could increase local government pension liabilities, potentially straining municipal budgets
  • Equity concerns: Changes may create disparities between veteran and newer personnel, or between different departments depending on pay structure practices
  • Fiscal sustainability: Broader benefit definitions could affect the long-term solvency of the retirement system and require higher employer contributions

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

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