All Roll Calls
Yes: 132 • No: 0
ArkansasHB11182025 Regular SessionHouse
TO AMEND THE LAWS CONCERNING THE MANAGEMENT OF PREMIUM TAXES UNDER THE ARKANSAS FIRE AND POLICE PENSION REVIEW BOARD; AND TO DECLARE AN EMERGENCY.
Sponsored By: Kim Hammer (Republican), Les Warren (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
Local pensions get easier extra allocations
Qualifying police and fire pension funds can receive extra allocations without pension-board approval. Funds must still follow applicable laws and rules. Generally, prior-year employer contributions, excluding premium-tax money, must equal at least 80% of the fund's estimated pension cost. An exception covers volunteer firefighter funds run by the Arkansas Local Police and Fire Retirement System that are below 50% funded. That exception may be eliminated to meet the funding requirement in Arkansas Code § 24-11-215(e)(2)(A).
Police pension supplements get new management
Beginning July 1, 2025, Arkansas's Department of Finance and Administration runs the police pension supplement program and Future Supplement Fund. Each year by July 1, the finance secretary must transfer enough police revenue for next year's supplement payments and program costs. Required local pension distributions and the state police retirement share are funded first. Excess supplement transfers no longer must return to the State Treasury. The department may use prior-year money allocated but not distributed for the Future Supplement Fund, including to offset a statutory reduction. Eligible retired officers and survivors remain covered; no change to their payment amounts or eligibility is stated.
Underfunded local pensions lose funding channel
Beginning July 1, 2025, the law ends one state funding channel for underfunded municipal police and fire pension plans. The pension board no longer certifies recommended yearly funding through this process. The related transfer from the Revenue Holding Fund Account also ends. The law gives no dollar amount and does not directly change individual pension benefits.
New rules for local pension funding
The finance department reviews local pension tax distributions before payment, considers new qualifying communities and district boundaries, and reports by December 14 annually. Starting in 2026, it must certify each qualifying city, town, or fire district's exact yearly share by June 15. Police pension calculations use the department's actuarial cost estimate from the prior calendar year. Local shares come from the pension relief fund after department administrative and actuarial expenses; qualification carries no administrative fee. The department's assessment is capped at 1% of that fund, in addition to the separate pension-board assessment. It may also retain up to 1% of police supplement transfers for administration. The department may make local allocation rules, but is no longer required to do so.
Sponsors & Cosponsors
Sponsors
Kim Hammer
Republican • Senate
Les Warren
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 2/18/2025
Senate Vote - Tuesday, February 18, 2025 11:07:37 AM
Yes: 32 • No: 0
House vote • 2/12/2025
House Vote - Wednesday, February 12, 2025 2:43:16 PM
Yes: 100 • No: 0
Actions Timeline
Notification that HB1118 is now Act 151
2/25/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
2/20/2025HouseTO BE ENROLLED
2/18/2025HouseReturned from the Senate as passed.
2/18/2025HouseReturned to the House as passed.
2/18/2025SenateEMERGENCY CLAUSE ADOPTED
2/18/2025SenateRead the third time and passed.
2/18/2025SenateRead the first time, rules suspended, read the second time and placed on the calendar.
2/12/2025SenateReceived from the House.
2/12/2025SenateEMERGENCY CLAUSE ADOPTED
2/12/2025HouseRead the third time and passed and ordered transmitted to the Senate.
2/12/2025HouseReturned by the Committee Do Pass
2/11/2025HouseREPORTED CORRECTLY ENGROSSED
2/5/2025HouseAmendment No. 1 read and adopted and the bill ordered engrossed.
2/5/2025HousePlaced on second reading for the purpose of amendment.
2/5/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on PUBLIC RETIREMENT & SOCIAL SECURITY PROGRAMS-JOINT
1/14/2025HouseFiled
1/14/2025House
Bill Text
HB1118 - Introduced
1/14/2025
Act Version
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