TO AMEND THE LAWS CONCERNING EMPLOYEES OF A MUNICIPALITY THAT PARTICIPATES IN THE ARKANSAS PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE ELECTION TO INSTEAD PARTICIPATE IN A LOCAL RETIREMENT PLAN.

2025 Regular Session Introduced by Jim Wooten

House Bill 1195 aimed to extend the election period for Arkansas municipal employees to opt out of the state retirement system, enhancing flexibility for local officials.

Died in House Committee at Sine Die adjournment.

Bill Information

Bill Number: HB 1195

Title: To Amend the Laws Concerning Employees of a Municipality that Participates in the Arkansas Public Employees' Retirement System and the Election to Instead Participate in a Local Retirement Plan.

Status: Died in House Committee at Sine Die adjournment.

Introduced: January 22, 2025

Classification: Bill

Purpose and Intent

House Bill 1195 aimed to amend existing laws regarding employees of municipalities in Arkansas that participate in the Arkansas Public Employees' Retirement System (APERS). The primary intent of the bill was to modify the timeframe within which these employees could elect to opt out of APERS and instead participate in a local retirement plan.

Key Provisions

Election Period Extension: The bill proposed to extend the election period for employees to decide whether to participate in APERS or a local retirement plan from the current requirement of 90 days after assuming office to allow for additional flexibility.

Written Notice Requirement: Employees opting out of APERS would still be required to provide written notice of their election to the system in a form acceptable to APERS.

Temporary Language: The bill included a provision that would allow employees, including mayors and city clerks of first-class cities, an additional 90 days from the effective date of the act to make their election.

Affected Parties

Municipal Employees: The bill primarily affects employees of municipalities that are part of APERS, including elected officials such as mayors and city clerks.

Local Retirement Plans: The legislation would also impact local retirement plans by potentially increasing participation from municipal employees who choose to opt out of APERS.

Procedural Aspects

Legislative Actions:

The bill was filed on January 22, 2025, and was read for the first time, with rules suspended for a second reading before being referred to the Committee on Public Retirement & Social Security Programs-Joint.
Ultimately, the bill died in the House Committee on May 5, 2025, at Sine Die adjournment, meaning it did not progress to a vote or further consideration.

Conclusion

House Bill 1195 sought to provide greater flexibility for municipal employees in Arkansas regarding their retirement plan options. By extending the election period for opting out of APERS, the bill aimed to accommodate the needs of local officials and employees. However, the bill did not advance beyond the committee stage and therefore did not become law.

Bill