AR Code § 24-4-206 (2020)
2020 Arkansas Code|Title 24 - Retirement And Pensions|Chapter 4 - Arkansas Public Employees' Retirement System|Subchapter 2 - Funds and Management of Assets|§ 24-4-206. Funding — Additional liabilities — Local Government Division

 (a)  (1) Whenever the General Assembly shall enact any laws which create additional eligibility or liabilities for county constitutional officers or for county employees or municipal employees of the Arkansas Public Employees' Retirement System and the Board of Trustees of the Arkansas Public Employees' Retirement System shall determine, based upon actuarial valuation, that the method of funding the additional liabilities is not sufficient to meet the unfunded obligations created by the additional benefit or eligibility provision, then the procedures established in this section shall be followed in providing the necessary moneys to actuarially fund the additional liabilities.  (2)  (A) The Executive Director of the Arkansas Public Employees' Retirement System shall cause an actuarial valuation to be made of the additional liabilities created by the laws.  (B) In the event the actuary determines that the employee and employer contributions are actuarially insufficient to pay the benefits of the elected county constitutional officer members or county or municipal employee members of the Local Government Division of the Arkansas Public Employees' Retirement System, the director shall establish accounts and records to identify the estimated contributions and other income available to actuarially fund the members' benefits when they mature, as well as the extent that each county's member liabilities will exceed the amount of employee and employer contributions and interest thereon.      (b)  (1) The director shall then calculate, with the assistance of the actuary, the amount of funds required annually or on a lump-sum basis to actuarially fund the additional unfunded liabilities created by the laws with respect to members from each county or municipality. He or she shall annually or on a lump-sum basis certify to the Chief Fiscal Officer of the State the amount required for the year or on a lump-sum basis to establish sufficient funds and reserves to meet the actuarial requirements of the additional benefits.  (2) The certificate of the Chief Fiscal Officer of the State shall reflect the amount of the annual extra payment to be charged against each of the several counties and municipalities, based on the unfunded liabilities with respect to their officials and employee members of the Local Government Division.  (3) The Chief Fiscal Officer of the State shall cause the amount so certified to be transferred from the County Aid Fund or from the Municipal Aid Fund, as the case may be, from general revenues allocated thereto for turnback to counties or municipalities to the Arkansas Public Employees' Retirement System Fund for credit to the Local Government Division of the Arkansas Public Employees' Retirement System.  (4) From the general revenues allocated thereto for turnback to counties or municipalities, the Chief Fiscal Officer of the State shall deduct from the County Aid Fund turnback to be received by each county an amount as computed pursuant to this section required to pay retirement benefits for its elected county constitutional officer members, and for its county employee members of the Local Government Division of the Arkansas Public Employees' Retirement System.  (5) From general revenues allocated thereto for turnback to municipalities, the Chief Fiscal Officer of the State shall deduct from the Municipal Aid Fund turnback to be received by each municipality an amount, payable upon actuarial determination, required to pay retirement benefits for their municipal employee members from each of the respective municipalities.  (6)  (A) The moneys to be transferred from the County Aid Fund and the Municipal Aid Fund shall not be charged against the total of the county aid or municipal aid funds available for distribution to counties or municipalities.  (B) It is the intent of this section that each county pay annually from its County Aid Fund general revenues turnback, and that each municipality pay annually from its Municipal Aid Fund general revenues turnback, the amount of money required to meet the unfunded liability deficit in behalf of its respective county and municipal employee members of the system resulting from the enactment of the laws.