To Amend The Laws Concerning The Management Of Premium Taxes Under The Arkansas Fire And Police Pension Review Board; And To Declare An Emergency.
Summary
HB1118 revises Arkansas law governing the collection, allocation, and administration of premium tax revenues used to support municipal fire and police pension systems. The bill shifts several duties from the Arkansas Fire and Police Pension Review Board to the Department of Finance and Administration (DFA), including administration of the Policemen’s Pension Supplement Program, administration of the Future Supplement Fund, annual certification and allocation processes, and rulemaking authority tied to premium tax distributions. It also updates references throughout the code to reflect DFA’s role in handling these funds and related actuarial and administrative functions.
The bill retains the existing structure for directing premium tax revenues to the Firemen’s and Police Officers’ Pension and Relief Fund, but it clarifies how funds are certified, transferred, and used, including the treatment of unallocated premium taxes, prior-year allocations, and administrative expenses. It also repeals a provision that previously required the Pension Review Board to certify recommended funding for underfunded municipal fire and police relief and pension plans, replacing that framework with the revised administrative structure. The emergency clause makes the act effective July 1, 2025, to allow the new administration process to begin on a structured timetable.
Impact
HB1118 amends multiple sections of Arkansas Code Title 24, Chapter 11, affecting the management of premium tax revenues for local fire and police retirement systems. The practical effect is to transfer key administrative responsibilities from the Arkansas Fire and Police Pension Review Board to the Department of Finance and Administration, while preserving the underlying funding streams for pension supplements, future supplement payments, and allocations to qualified cities, towns, and fire protection districts. It also adjusts certification deadlines, administrative-cost provisions, and references to the responsible agency across the affected statutes.
Sentiment
The bill appears to have broad support and little visible opposition. It passed the House and Senate unanimously on third reading, with 100-0 in the House and 32-0 in the Senate. The emergency clause and the stated purpose of improving financial security and efficiency suggest the measure was presented as an administrative modernization rather than a controversial policy change.
Contention
No committee testimony or recorded debate was provided, and the voting record shows no opposition. The main substantive issue embedded in the bill is the transfer of authority from the Arkansas Fire and Police Pension Review Board to DFA, which could raise questions about agency expertise, oversight, and operational control over pension-related premium tax funds. The bill also preserves a one-percent administrative cap and revises how actuarial and administrative costs are handled, but no specific objections are documented in the available materials.