TO AMEND LAWS CONCERNING FRAUD AGAINST THE GOVERNMENT TO INCLUDE FRAUD AGAINST A STATE SUPPORTED RETIREMENT SYSTEM.

Felony penalties for Arkansas retirement fraud

The law extends benefit-fraud rules to Arkansas state-supported retirement systems, with Class D felony penalties upon conviction. These rules cover knowingly making important false statements or knowingly helping someone else make them. The statements must seek payment, defeat a claim, or wrongly increase or decrease a claim. The rules also cover statements to the State Department for Social Security Administration Disability Determination. For the Arkansas Public Employees’ and State Police retirement systems, felony penalties replace misdemeanor penalties. The law adds the same felony penalty for the Arkansas Judicial Retirement System. These system-specific offenses cover knowingly making important false statements, falsifying important records, or allowing such falsification to defraud the system. All prescribed claims-process forms must include the false-statement rule, including forms for claimants, providers, and other parties. Retirement system executive directors may refer violations to the Arkansas Attorney General or Sixth Judicial District Prosecuting Attorney. The disability department director must refer violations to the prosecutor where the original claim was filed. The emergency clause makes the law effective upon governor approval, a veto override, or the end of the veto period without a veto.