ArkansasHB13262025 Regular SessionHouseWALLET

TO AMEND THE LAW CONCERNING SPECIAL ALLOWANCES TO ENCOURAGE EARLY RETIREMENT AND MANAGE EARLY RETIREMENT WINDOW INCENTIVES FOR EMPLOYEES OF INSTITUTIONS OF HIGHER EDUCATION; AND TO DECLARE AN EMERGENCY.

Sponsored By: Kim Hammer (Republican), Les Warren (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

More retirement incentive options for college workers

Arkansas public college presidents and chancellors can negotiate early-retirement payments or retirement-plan contributions for faculty and staff, with board approval. These negotiated allowances no longer have to produce net savings. Both negotiated allowances and retirement-window incentives lose the former cap of 5% of the institution’s prior-year personnel costs. Both can use regular salary appropriations or any other funds available to the institution. For negotiated allowances, the law removes the annual report to the Legislative Joint Auditing Committee. No replacement cap or individual payment amount is set, and colleges do not have to offer payments. The emergency clause makes the changes effective immediately.

New eligibility rules for college retirement offers

Arkansas public college boards set eligibility rules for retirement-window incentives, and participation must be strictly voluntary. Employees must work full time and meet a state-sponsored retirement program’s requirements. This replaces the former age-55 or Civil Service retirement qualification and removes the limit to nontenured employees. The institution must save personnel costs, and the board must determine that those savings improve efficiency. Unlike negotiated allowances, retirement-window allowances still require an exact-disposition report to the Legislative Joint Auditing Committee by July 1 each year.

Sponsors & Cosponsors

Sponsors

  • Kim Hammer

    Republican • Senate

  • Les Warren

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 130 • No: 0

Senate vote • 3/3/2025

Senate Vote - Monday, March 3, 2025 2:59:05 PM

Yes: 34 • No: 0

House vote • 2/27/2025

House Vote - Thursday, February 27, 2025 2:22:16 PM

Yes: 96 • No: 0 • Other: 1

Actions Timeline

  1. Notification that HB1326 is now Act 249

    3/6/2025House
  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    3/4/2025House
  3. TO BE ENROLLED

    3/3/2025House
  4. Returned from the Senate as passed.

    3/3/2025House
  5. Returned to the House as passed.

    3/3/2025Senate
  6. EMERGENCY CLAUSE ADOPTED

    3/3/2025Senate
  7. Read the third time and passed.

    3/3/2025Senate
  8. Read the first time, rules suspended, read the second time and placed on the calendar.

    2/27/2025Senate
  9. Received from the House.

    2/27/2025Senate
  10. EMERGENCY CLAUSE ADOPTED

    2/27/2025House
  11. Read the third time and passed and ordered transmitted to the Senate.

    2/27/2025House
  12. REPORTED CORRECTLY ENGROSSED

    2/26/2025House
  13. Amendment No. 1 read and adopted and the bill ordered engrossed.

    2/26/2025House
  14. Placed on second reading for the purpose of amendment.

    2/26/2025House
  15. Returned by the Committee with the recommendation that it do pass as amended 1

    2/25/2025House
  16. Read the first time, rules suspended, read the second time and referred to the Committee on PUBLIC RETIREMENT & SOCIAL SECURITY PROGRAMS-JOINT

    1/30/2025House
  17. Filed

    1/30/2025House

Bill Text

  • HB1326 - Introduced

    1/30/2025

  • Act Version

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