reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 3 - CORRECTION OF ERRONEOUS MEMBERSHIPS (§§ 24-2-301 — 24-2-306) › Section 24-2-304 - Erroneous enrollment on or after January 1, 1979

(a)
(1)
When it is discovered by an employee, employer, or a state retirement system that an employee became erroneously enrolled in a state retirement system on or after January 1, 1979, the employee may elect to remain a member of the retirement system of record or may become a member of the eligible retirement system.
(2)
Subsections (b)-(d) of this section shall apply if the member chooses to become a member of the eligible retirement system.
(b)
The retirement system of record shall refund to the employer all contributions, both employee and employer, that were made in behalf of the employee in question.
(c)
(1)
The employer shall retain the contributions of both the employee and the employer that are refunded under subsection (b) of this section until the member is enrolled in the eligible retirement system.
(2)
Upon receipt of the refunded contributions, the employer shall file with the eligible retirement system an application for membership by the employee and a history of covered employment and wages, including service refunded by the retirement system of record.
(d)
(1)
The eligible retirement system shall furnish to both the employee and the employer a statement of the amount of contributions necessary to establish service credit in the eligible retirement system for the service refunded by the retirement system of record.
(2)
In computing the cost of that service, the eligible retirement system shall include both employee and employer contribution rates in its computation.
(3)
In paying the cost of establishing credit for the service in the eligible retirement system, the employer shall first use the employee refund from the retirement system of record and then as much of the employer refund as may be necessary. However, if all of the employer refund is not required to establish service credit, the remaining amount shall be paid into the General Education Fund.
(4)
In the event the cost of establishing the service credit is in excess of both the employee and the employer contributions refunded by the retirement system of record, the excess amount shall be paid by the employee.
Acts 1973, No. 667, § 4; 1979, No. 576, § 4; A.S.A. 1947, § 12-2574; Acts 1989, No. 154, § 1; 1991, No. 13, § 1.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 3 - CORRECTION OF ERRONEOUS MEMBERSHIPS (§§ 24-2-301 — 24-2-306) › Section 24-2-305 - Effect of promotion of nonteacher school employee

Other provisions of this subchapter to the contrary notwithstanding, a school janitor, bus driver, or cafeteria worker who is enrolled in one (1) of those positions as a member of the Arkansas Public Employees' Retirement System and later is promoted to a position as school maintenance worker or supervisor, as bus mechanic or as transportation supervisor, or as cafeteria manager, respectively, shall continue to be a member of the Arkansas Public Employees' Retirement System as long as he or she is employed in one (1) of those respective capacities.
Acts 1979, No. 576, § 6; A.S.A. 1947, § 12-2574.1.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 3 - CORRECTION OF ERRONEOUS MEMBERSHIPS (§§ 24-2-301 — 24-2-306) › Section 24-2-306 - Erroneous enrollment because of concurrent membership

Any member of the Arkansas Public Employees' Retirement System who is erroneously enrolled in the Arkansas Public Employees' Retirement System because of concurrent enrollment in another state-funded or state-authorized retirement system, other than Social Security, due to separate and distinct service for a public school or a municipality, may elect to remain a member of the Arkansas Public Employees' Retirement System subject to the following conditions:
(1)
The other system will allow the member to forfeit the concurrent service by refunding all employer and employee contributions respectively; and
(2)
The member notifies both the Arkansas Public Employees' Retirement System and the other system that the member will remain in the Arkansas Public Employees' Retirement System and forfeit service and accrued benefits in the other system.
Acts 1999, No. 325, § 2.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 4 - RECIPROCAL SERVICE CREDITS (§§ 24-2-401 — 24-2-408) › Section 24-2-403 - Date of annuity payment

(a)
The date a member's annuity, if any, becomes payable by each reciprocal system shall be determined by those provisions in force for each reciprocal system.
(b)
In no case shall any annuity become payable nor be paid prior to the date the member retires from, and ceases to be, in the employ of an employer covered by a reciprocal system as defined in §
24-2-401(4)
.
Acts 1965, No. 488, § 4; 1975, No. 611, § 4; A.S.A. 1947, § 12-2540; Acts 2001, No. 151, § 5.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 4 - RECIPROCAL SERVICE CREDITS (§§ 24-2-401 — 24-2-408) › Section 24-2-404 - Disbursement of annuities

(a)
The boards of trustees of the reciprocal systems may enter into an agreement whereby the reciprocal system from which a member retires shall be the disbursing system for his or her annuities payable, as provided in this subchapter, by the other reciprocal systems.
(b)
The agreement shall provide, but shall not be limited to, the manner and frequency with which the disbursing system shall be reimbursed for the annuities payable by the other reciprocal systems.
(c)
Except for provisions of this section regarding the deferred retirement option plan under §
24-7-1301
et seq. for the Arkansas Teacher Retirement System, the provisions of this section shall not apply to retirants in the Arkansas Teacher Retirement System.
Acts 1965, No. 488, § 5; 1967, No. 310, § 2; 1969, No. 81, §§ 2, 3; 1973, No. 586, § 7; 1975, No. 611, § 5; A.S.A. 1947, § 12-2541; Acts 1997, No. 927, § 3.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 4 - RECIPROCAL SERVICE CREDITS (§§ 24-2-401 — 24-2-408) › Section 24-2-405 - Disability benefits

(a)
A member of a reciprocal system with five (5) or more years of credited service in two (2) or more reciprocal systems shall be eligible to apply for disability benefits from each reciprocal system in which he or she has credited service.
(b)
Each reciprocal system shall make the determination under its respective rules as to whether the member is eligible for disability benefits.
(c)
The member shall be eligible for a refund of his or her accumulated contributions plus interest, if any, from any reciprocal system in which he or she does not qualify for disability benefits. This refund shall not alter his or her eligibility for benefits from any other reciprocal system.
Amended by Act 2019, No. 315,§ 2846, eff. 7/24/2019.
Acts 1965, No. 488, § 3; 1971, No. 579, § 3; 1975, No. 611, § 3; A.S.A. 1947, § 12-2539; Acts 2001, No. 151, § 6.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 4 - RECIPROCAL SERVICE CREDITS (§§ 24-2-401 — 24-2-408) › Section 24-2-407 - Benefit enhancements - Restrictions

(a)
No benefit enhancement provided for by this subchapter shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization.
(b)
No benefit enhancement provided for by this subchapter shall be implemented by any publicly supported system which has unfunded actuarial accrued liabilities being amortized over a period exceeding thirty (30) years until the unfunded actuarial accrued liability is reduced to a level less than the standards prescribed by §
24-1-101
et seq.
Acts 1997, No. 927, § 4.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 4 - RECIPROCAL SERVICE CREDITS (§§ 24-2-401 — 24-2-408) › Section 24-2-408 - Concurrence prohibited

In establishing credited service under this subchapter, persons who receive credited service pursuant to §
24-4-101(18)(B)(xiii)
for dual full-time employment in the Arkansas Public Employees' Retirement System and the Arkansas Local Police and Fire Retirement System under the provisions of this act may count periods of credited service covering the same calendar time only one (1) time.
Acts 2001, No. 764, § 2.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 5 - MILITARY SERVICE CREDIT (§§ 24-2-501 — 24-2-505) › Section 24-2-501 - Free credited service

(a)
(1)
Any member of the Arkansas Judicial Retirement System established by §
24-8-201
et seq. shall be entitled to receive free credited service in the system for a period of not to exceed two (2) years for service rendered by him or her in the United States Armed Forces during World War I, World War II, the Korean Conflict, or the Vietnam Conflict.
(2)
Notwithstanding §
24-2-502
or any other law to the contrary, any member of the system may also purchase credited service in the system not to exceed five (5) years for service rendered by him or her in the United States Armed Forces and to be purchased in accordance with the procedures in §
24-2-502
.
(b)
Any person entitled to receive free credited service in the system under the provisions of this section shall be granted credited service under the system for service in the armed forces during World War I, World War II, the Korean Conflict, or the Vietnam Conflict upon:
(1)
Making application therefor to the Board of Trustees of the Arkansas Judicial Retirement System; and
(2)
Providing proof satisfactory to the board of that person's military service.
(c)
The provisions of this section shall be supplemental to any other laws relating to state-supported retirement systems in this state. Nothing in this section shall be construed to diminish the right of any member of a state-supported retirement system to obtain credited service in the system for military service.
(d)
This section shall not apply to the Tier Two Actual Judicial Service Benefit Plan of the Arkansas Judicial Retirement System provided for in §
24-8-701
et seq.
Acts 1973, No. 634, §§ 1-3; A.S.A. 1947, §§ 12-2524.1 -- 12-2524.3; Acts 1987, No. 92, §§ 1, 2; 1987, No. 218, §§ 1, 2; 1997, No. 1185, § 1; 1999, No. 399, § 2.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 5 - MILITARY SERVICE CREDIT (§§ 24-2-501 — 24-2-505) › Section 24-2-504 - Return to covered employment by military personnel

(a)
An active member of the state retirement system who is called to active military duty or state active military duty shall be afforded all employment protections as provided in the Uniformed Services Employment and Reemployment Rights Act,
38 U.S.C. § 4301
et seq., as in effect on January 1, 2009.
(b)
Employer contributions shall be paid for the state retirement system member's period of active military duty by the member's last retirement system employer immediately before the member's active duty in accordance with the Uniformed Services Employment and Reemployment Rights Act, as in effect on January 1, 2009.
(c)
In order to receive retirement credit in the state retirement system for the time spent in active duty, a member covered by the contributory provisions of the member's state retirement system who returns from active military duty to either the same or a different covered employer shall pay into the state retirement system the employee contributions that would have otherwise been paid into the state retirement system by the member as though the member had never left covered service.
Amended by Act 2019, No. 474,§ 1, eff. 7/24/2019.
Acts 2009, No. 295, § 3.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 5 - MILITARY SERVICE CREDIT (§§ 24-2-501 — 24-2-505) › Section 24-2-505 - Compliance with Heroes Earnings Assistance and Relief Tax Act of 2008

(a)
(1)
In the case of a member who dies while performing qualified military service, including state active military duty, on or after January 1, 2011, and who otherwise would have been entitled to reemployment rights under the Uniformed Services Employment and Reemployment Rights Act,
38 U.S.C. § 4301
et seq., as in effect on January 1, 2011, the survivors of that member are entitled to any additional benefits that would have been provided under the public employee retirement plan had the member resumed employment with a covered employer on the day preceding his or her death and then terminated employment on the actual date of death.
(2)
Subdivision (a)(1) of this section does not apply to benefit accruals relating to the period of qualified military service.
(3)
The member's qualified military service shall be counted for purposes of determining whether the individual in issue was vested with the public employee retirement plan.
(b)
In the case of a member who becomes disabled while performing qualified military service, including state active military duty, on or after January 1, 2011, and who otherwise would have been entitled to reemployment rights under the federal Uniformed Services Employment and Reemployment Rights Act,
38 U.S.C. § 4301
et seq., as in effect on January 1, 2011, that member is considered to have resumed employment with a covered employer on the day preceding the onset of his or her disability and then terminated employment on the actual date he or she became disabled.
(c)
A member who dies or becomes disabled while performing qualified military service, including state active military duty, is deemed to have made employee contributions for the purpose of determining benefits other than benefit accruals that are contingent on those contributions for the period of qualified military service.
(d)
This section applies to each public retirement system unless the system has a specific provision regarding the Heroes Earnings Assistance and Relief Tax Act of 2008, Pub. L. No. 110-245, already in its law.
Amended by Act 2019, No. 474,§ 3, eff. 7/24/2019.
Amended by Act 2019, No. 474,§ 2, eff. 7/24/2019.
Acts 2011, No. 38, § 5.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-601 - Investment authority and limitations generally

(a)
All investments of the retirement systems covered by this subchapter shall be in strict compliance with the provisions of this subchapter.
(b)
The term "trust" as used in this subchapter refers to the following Arkansas retirement systems:
(1)
The State Police Retirement System;
(2)
The Arkansas Public Employees' Retirement System;
(3)
The Arkansas Teacher Retirement System;
(4)
The Arkansas State Highway Employees' Retirement System; and
(5)
The Arkansas Judicial Retirement System.
(c)
The term "trustees" as used in this subchapter refers to boards of trustees of the systems referenced in subsection (b) of this section.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-602 - Investment authority and limitations - Permissible investments

(a)
The boards of trustees of the State Police Retirement System, the Arkansas Public Employees' Retirement System, the Arkansas Teacher Retirement System, the Arkansas State Highway Employees' Retirement System, and the Arkansas Judicial Retirement System shall have full power to invest and reinvest the moneys of the respective systems and to hold, purchase, sell, assign, transfer, or dispose of any of the investments so made as well as the proceeds of the investments and moneys.
(b)
However, the investments and reinvestments shall only be made in accordance with the prudent investor rule set forth in §§
24-2-610
-
24-2-619
.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-603 - Investment authority and limitations - Default setoff

(a)
In the event of default in payment of the principal or interest of any investment obligation held by any state retirement system where the issuer of the obligation receives moneys from the state, the default shall be certified by the board of the respective system to the Treasurer of State.
(b)
The Treasurer of State shall withhold all moneys due the issuer from the state until the default, together with regular interest thereon, is satisfied.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-604 - Investment authority and limitations - Conflict of interest

Except as to the rights of a member, retirant, or beneficiary, no trustee and no officer or employee of the board of any state retirement system shall have any interest, directly or indirectly, in the gains or profits of any investment made by the respective board. Nor shall any retirement system trustee, officer, or employee, directly or indirectly for himself or herself or as an agent, in any manner use the assets of the systems except to make such current and necessary payments as are authorized by the respective boards, nor shall any of them become an endorser or surety or, in any manner, an obligor for moneys loaned by or borrowed from any of the respective systems.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-605 - Investment authority and limitations - Fidelity bonds

(a)
The boards of trustees of the respective retirement systems shall provide for a blanket fidelity bond of one million dollars ($1,000,000) covering the employees of the systems or such others as may be responsible for administering the funds.
(b)
The boards may pay the premiums for the bond from funds of the systems.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-606 - Investment authority and limitations - Custodianship of assets

(a)
The Treasurer of State shall be the legal custodian of the securities of the respective retirement systems. However, the systems may deposit with the Treasurer of State, in lieu of securities, safekeeping receipts or evidence of federal bookkeeping entries.
(b)
The financial institution or depository issuing the safekeeping receipts, unless issued by an agency of the federal government, shall have on file with the Treasurer of State a letter of the issuer's bonding or insurance company, stating the amount of insurance currently in force covering loss or theft of the securities.
(c)
In addition, the boards of trustees of the respective retirement systems, if deemed necessary to facilitate particular investment transactions, the settlement of security transactions, redemption of particular securities, or collection of investment income, may select and designate such banks, trust companies, or central depositories as may be appropriate to act as legal custodian of their securities.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-607 - Investment authority and limitations - Trust account

(a)
In addition to the various retirement systems funds established as trust funds in the State Treasury, a bank trust fund or funds may be established and maintained in such depository bank or banks as may be designated by the boards of trustees of the respective retirement systems.
(b)
Each bank fund shall consist of and there may be deposited into the fund:
(1)
All employer contributions, including any interest;
(2)
All employee contributions, including any interest;
(3)
Interest, dividend, and other incomes realized from investments and reinvestments;
(4)
Interest earned upon any moneys in the fund; and
(5)
Such other proceeds as may be derived from the sale, exchange, redemption, transfer, or disposition of any securities or investments.
(c)
The following disbursements may be made from the bank funds:
(1)
Payments for all securities and investments, the purchase of which is authorized by law, which may include principal, accrued interest, commission, taxes, and fees;
(2)
Payments for money manager and custodian bank fees;
(3)
The deposit to the appropriate State Treasury fund for the payment of annuities and refunds as authorized by law that are paid on vouchers issued by the respective retirement systems and on warrants issued thereon by the Auditor of State;
(4)
The payment of annuities and refunds as authorized by law that are paid on cash fund vouchers issued by the respective retirement systems and on checks or wire transfers issued from bank funds; and
(5)
The deposit to the appropriate State Treasury fund for the payments of salaries, maintenance, and operating expenses of the retirement systems supported from investment earnings.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-608 - Investment authority and limitations - Arkansas-related investments

(a)
In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing funds held by each of the trusts, fiduciaries administering the systems shall manage the funds so as to favorably impact the economic condition of and maximize capital investment in the State of Arkansas when appropriate investment alternatives are available.
(b)
It is the intention of the General Assembly that, as assets become available for investment, the systems shall seek to invest not less than five percent (5%) nor more than ten percent (10%) of their portfolios in Arkansas-related investments.
(c)
In calculating the percentage of Arkansas-related investments, the systems shall not include Federal National Mortgage Association investments nor Government National Mortgage Association investments.
(d)
Nothing in this section shall in any way limit or impair the responsibility of a fiduciary to invest in accordance with the prudent investor rule set forth in §§
24-2-610
-
24-2-619
.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-609 - Registration of securities in name of nominee - Powers and duties of nominee

(a)
The boards of trustees of the various state retirement systems are authorized to register stocks, bonds, notes, and other securities held by and for the systems in the name of a designated nominee.
(b)
Such action as is necessary to establish a nominee and a nominee agreement may be taken.
(c)
The nominee agreement shall specify that the nominee shall not have or claim any beneficial interest whatsoever in any stocks, bonds, notes, and other securities held in the name of the nominee. That is, all beneficial interest in the stocks, bonds, notes, and other securities and in the interest, dividends, and capital gains derived therefrom shall be vested in the respective state retirement systems.
(d)
The nominee shall have no power to undertake any obligation on behalf of the nominee, except upon the direction of the particular state retirement system.
(e)
The nominee may endorse securities and take other necessary actions in the purchase, registration, and sale of stocks, bonds, notes, and other securities, subject always to the provisions of this section.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-610 - Prudent investor rule

(a)
Except as otherwise provided in subsection (b) of this section, trustees who invest and manage trust assets owe a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in §§
24-2-610
-
24-2-619
.
(b)
(1)
The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust.
(2)
Trustees are not liable to a beneficiary to the extent that the trustees acted in reasonable reliance on the provisions of the trust.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-611 - Standard of care - Portfolio strategy - Risk and return objectives

(a)
Trustees shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustees shall exercise reasonable care, skill, and caution.
(b)
The trustees' investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(c)
Among circumstances that trustees shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:
(1)
General economic conditions;
(2)
The possible effect of inflation or deflation;
(3)
The expected tax consequences of investment decisions or strategies;
(4)
The role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;
(5)
The expected total return from income and the appreciation of capital;
(6)
Other resources of the beneficiaries;
(7)
Needs for liquidity, regularity of income, and preservation or appreciation of capital; and
(8)
An asset's special relationship or special value, if any, to the purposes of the trust or to one (1) or more of the beneficiaries.
(d)
Trustees shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
(e)
Trustees may invest in any kind of property or type of investment consistent with the standards of this subchapter.
(f)
Trustees who have special skills or expertise, or who are named trustees in reliance upon the trustees' representation that the trustees have special skills or expertise, have a duty to use their special skills or expertise.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-612 - Diversification

Trustees shall diversify the investments of the trust unless the trustees reasonably determine that, because of special circumstances, the purposes of the trust are better served without diversifying.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-613 - Duties at inception of trusteeship

(a)
Within a reasonable time after accepting a trusteeship or receiving trust assets, trustees shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust and with the requirements of this subchapter.
(b)
(1)
Trustees shall develop an investment policy. This policy shall be a written statement of goals for the fund and rules to be followed to achieve those goals.
(2)
Trustees shall measure performance of the fund and shall measure each manager's performance against benchmarks jointly agreed upon by the trustees and managers.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-614 - Loyalty

Trustees shall invest and manage the trust assets solely in the interest of the members and benefit recipients of the trust.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-615 - Impartiality

If a trust has two (2) or more beneficiaries, the trustees shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-616 - Investment costs - Limitations on investment authority

(a)
In investing and managing trust assets, trustees may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
(b)
Trustees may delegate investment functions to an agent that a prudent trustee of comparable skills could properly delegate as provided in §
24-2-618
.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-617 - Reviewing compliance

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of the trustees' decisions or actions and is not determined by hindsight.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 6 - STATE RETIREMENT SYSTEMS INVESTMENTS (§§ 24-2-601 — 24-2-619) › Section 24-2-619 - Language invoking standard of subchapter

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this subchapter:
(1)
"Investments permissible by law for investment of trust funds";
(2)
"Legal investments";
(3)
"Authorized investments";
(4)
"Using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital";
(5)
"Prudent man rule";
(6)
"Prudent trustee rule";
(7)
"Prudent person rule"; and
(8)
"Prudent investor rule".
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 7 - ARKANSAS PUBLIC EMPLOYEE RETIREMENT PLANS (§§ 24-2-701 — 24-2-704) › Section 24-2-702 - Reports

(a)
Each Arkansas public employees' retirement system shall have an annual financial audit performed by Arkansas Legislative Audit and prepared in accordance with the financial accounting and reporting standards set forth for public pension plans by the Governmental Accounting Standards Board.
(b)
(1)
In addition, if approved by the board of trustees of an Arkansas public employees' retirement system, a system may also select another independent auditor to perform a separate financial audit of the respective system.
(2)
Prior to entering the contract for the additional audit, the public employees' retirement system shall provide the Legislative Joint Auditing Committee the reasons, in writing, for the need of the additional financial audit.
(3)
All contracts for audits shall be in compliance with the state's fiscal laws and rules.
(4)
A copy of each audit report prepared by another independent auditor shall be provided to the Legislative Joint Auditing Committee, the Legislative Council, and the Governor.
Amended by Act 2019, No. 315,§ 2847, eff. 7/24/2019.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 7 - ARKANSAS PUBLIC EMPLOYEE RETIREMENT PLANS (§§ 24-2-701 — 24-2-704) › Section 24-2-703 - Tax exemptions

(a)
The assets of the Arkansas Public Employees' Retirement System, the State Police Retirement System, the Arkansas Judicial Retirement System, the Arkansas State Highway Employees' Retirement System, and the Arkansas Teacher Retirement System are exempt from taxes by the state or any political subdivision or agency thereof.
(b)
(1)
It is the purpose of this section to provide equitable tax treatment to persons receiving benefits from alternate publicly supported retirement or annuity plans of the state's colleges and universities and the Division of Higher Education.
(2)
It is not the intent of this section to reduce the income tax exemption provided by law to any person in regard to retirement or survivor benefits.
Amended by Act 2019, No. 910,§ 2364, eff. 7/1/2019.
Acts 2001, No. 151, § 8.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 7 - ARKANSAS PUBLIC EMPLOYEE RETIREMENT PLANS (§§ 24-2-701 — 24-2-704) › Section 24-2-704 - Retirement in event of government reorganization

(a)
In the event of any structural reorganization of state government operations, all current employees, appointees, trustees, and commissioners of any affected agency, board, or commission shall remain associated with the state-supported retirement system that existed for them as of the date immediately prior to the reorganization.
(b)
(1)
Member employers and employees of any state-supported retirement system shall remain covered by their respective systems.
(2)
The transition of any state agency or other political subdivision of the state from one state-supported retirement system to another shall be accomplished through enabling legislation in the Eighty-fifth General Assembly.
(3)
In the event of a retirement coverage transition, there shall be no transfer of service from one retirement system to another. Instead, the provisions of §§
24-2-402
-
24-2-405
,
24-2-407
, and
24-2-408
shall be in full force and effect.
Acts 2003, No. 751, § 1.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-801 - Title

This subchapter shall be known and may be cited as the "State Government Employee Retirement Protection Act".
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-802 - Definitions

As used in this subchapter:
(1)
"Fiduciary" means a person who, with respect to a pension benefit plan:
(A)
Exercises any discretionary authority or discretionary control regarding the management of the pension benefit plan or exercises any authority or control regarding the management or disposition of the pension benefit plan's assets; or
(B)
Has any discretionary authority or discretionary responsibility in the administration of the pension benefit plan, including making recommendations or voting on or for a plan's shares or proxies;
(2)
(A)
"Material", when used to qualify a financial risk or financial return, means a financial risk or financial return in which there is a substantial likelihood that a reasonable investor would attach importance when:
(i)
Evaluating the potential financial risks or returns of an existing or prospective investment; or
(ii)
Exercising, or declining to exercise, any rights appurtenant to securities.
(B)
"Material", when used to qualify a financial risk or financial return, does not include:
(i)
Furthering nonpecuniary, environmental, social, political, ideological, or other goals or objectives; or
(ii)
Any portion of a financial risk or financial return that primarily relates to events that:
(a)
Involve a high degree of uncertainty regarding what may occur in the long-term future; and
(b)
Are systemic, general, or not investment-specific in nature;
(3)
"Nonpecuniary" means any action taken or factor considered by a fiduciary with any purpose to further environmental, social, political, or ideological goals;
(4)
(A)
"Pecuniary factor" means a factor that has a material effect on the financial risk or financial return, or both, of an investment based on appropriate investment horizons consistent with the pension benefit plan's investment objectives and the funding policy.
(B)
"Pecuniary factor" does not include a nonpecuniary factor; and
(5)
"Pension benefit plan" means any plan, fund, or program, other than an individually directed defined contribution plan, that is established, maintained, or offered by the State of Arkansas or any subdivision, county, municipality, agency, or instrumentality of the State of Arkansas, or any school, college, university, administration, authority, or other enterprise operated by the State of Arkansas to the extent that by its terms or as a result of prevailing circumstances the plan, fund, or program:
(A)
Provides retirement income or other retirement benefits to employees or former employees; or
(B)
Results in a deferral of income by employees for a period of time extending to or beyond the termination of the covered employment.
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-803 - Standard of care - Sole interest and prudent person

A fiduciary shall discharge his or her duties with respect to a pension benefit plan:
(1)
Solely in the pecuniary interest of the participants and beneficiaries and for the exclusive purpose of:
(A)
Providing pecuniary benefits to participants and their beneficiaries; and
(B)
Defraying reasonable expenses of administering the plan;
(2)
With the care, skill, prudence, and diligence under the prevailing circumstances that a prudent person acting in a similar capacity and familiar with such matters would use in the conduct of an enterprise of a similar character and with similar aims;
(3)
By diversifying the investments of the pension benefit plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and
(4)
In accordance with the documents and instruments governing the pension benefit plan insofar as the documents and instruments are consistent with the provisions of this subchapter.
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-804 - Consideration of nonpecuniary factors prohibited

(a)
A fiduciary's evaluation of an investment, or evaluation or exercise of any right appurtenant to an investment, shall take into account only pecuniary factors.
(b)
A fiduciary shall not promote a nonpecuniary benefit or any other nonpecuniary goals.
(c)
(1)
An environmental, social, corporate governance, or other similarly oriented consideration is a pecuniary factor only if it presents an economic risk or opportunity that a qualified investment professional would treat as a material economic consideration under generally accepted investment theories.
(2)
The weight given to any factor listed in subdivision (c)(1) of this section should reflect solely a prudent assessment of its impact on financial risk and financial return.
(3)
A fiduciary considering an environmental, social, corporate governance, or other similarly oriented factor as a pecuniary factor is also required to examine the level of diversification, degree of liquidity, and the potential financial risk and financial return in comparison with other available alternative investments that would play a similar role in the pension benefit plan portfolio.
(4)
Any pecuniary consideration of an environmental, social, or governance factor must include an evaluation of whether a greater return can be achieved through investments that rank poorly on that factor.
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-805 - Voting ownership interests

(a)
(1)
All shares held directly or indirectly by or on behalf of a pension benefit plan or its beneficiaries, or both, shall be voted upon solely in the pecuniary interest of the pension benefit plan participants.
(2)
Voting to further a nonpecuniary, environmental, social, political, ideological, or other benefit or goal is prohibited.
(b)
Unless no economically practicable alternative is available:
(1)
A fiduciary shall not adopt a practice of following the recommendations of a proxy advisory firm or other service provider unless the firm or service provider has a practice of following proxy voting guidelines that are consistent with the fiduciary's obligation to act based only upon pecuniary factors and makes a written commitment to do so; and
(2)
Plan assets shall not be entrusted to a fiduciary unless that fiduciary has a practice of following guidelines when engaging with portfolio companies and voting shares or proxies that match the obligation of the pension benefit plan to act based only upon pecuniary factors and makes a written commitment to do so.
(c)
Authority to vote upon shares as discussed in this section shall be in the hands of the existing state official or board who is politically accountable to the people of the State of Arkansas for each pension benefit plan.
(d)
All voting authority shall reside with the appropriate state official or board, except that the state official or board may delegate that authority to a person who has a practice of following guidelines that match the governmental entity's obligation to act based only on pecuniary factors and makes a written commitment to do so.
(e)
(1)
All proxy votes shall be tabulated and reported annually to each pension benefit plan's board of trustees.
(2)
(A)
For each vote, the report shall contain a vote caption, the plan's vote, the recommendation of company management and, if applicable, the proxy advisor's recommendation.
(B)
These reports shall be posted on a publicly available webpage on each applicable board of trustees' website.
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 2 - PUBLIC EMPLOYEE RETIREMENT PLANS GENERALLY (§§ 24-2-101 — 24-2-806) › Subchapter 8 - STATE GOVERNMENT EMPLOYEE RETIREMENT PROTECTION ACT (§§ 24-2-801 — 24-2-806) › Section 24-2-806 - Enforcement

(a)
This subchapter may be enforced by the Attorney General.
(b)
If the Attorney General has reasonable cause to believe that a person has engaged in or is engaging in a violation of this subchapter, the Attorney General may:
(1)
Require the person to file on forms the Attorney General prescribes a statement or report in writing, under oath, as to all the facts and circumstances concerning the violation, as well as other data and information the Attorney General deems necessary;
(2)
Examine under oath any person in connection with the violation;
(3)
Examine any record, book, document, account, or paper the Attorney General deems necessary; and
(4)
Pursuant to an order of a circuit court with jurisdiction, impound any record, book, document, account, paper, sample, or material relating to the practice and retain the same in the Attorney General's possession until the completion of all proceedings undertaken under this subchapter or in the court.
Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.
Arkansas Code of 1987 (2023) › Title 24 - RETIREMENT AND PENSIONS (§§ 24-1-101 — 24-12-204) › Chapter 4 - ARKANSAS PUBLIC EMPLOYEES' RETIREMENT SYSTEM (§§ 24-4-101 — 24-4-1109) › Subchapter 1 - GENERAL PROVISIONS (§§ 24-4-101 — 24-4-111) › Section 24-4-102 - Penalty

Any person who knowingly makes any false statements or who falsifies or permits to be falsified any record in an attempt to defraud the Arkansas Public Employees' Retirement System as the result of such an act shall be guilty of a Class A misdemeanor.
Acts 1957, No. 177, § 5; 1959, No. 42, § 5; 1965, No. 153, § 5; 1981, No. 859, § 5; A.S.A. 1947, § 12-2505; Acts 2005, No. 1994, § 362.