Act 1266 of 1995 created the Arkansas Fire and Police Pension Guarantee Fund (the Fund). The purpose of the Fund is to provide financial assistance to certain local municipal fire and police pension funds that may deplete their assets before all promised benefits have been paid to their eligible benefit recipients.
A local fire or police pension fund may receive financial assistance from the Fund if approved by the Arkansas Fire and Police Pension Review Board (PRB). The local pension fund board must apply in writing for financial assistance to the PRB.
The basic criteria for eligibility to apply for assistance from the Fund are:
- The local pension fund must be receiving a dedicated millage of one (1) mill.
- Benefits payable from the local pension fund shall not exceed the minimum amount provided by law.
The PRB shall take into consideration the amount of income expected by the Fund when determining the amount of financial assistance available to the local pension funds, as well as consider if the local fund would be better served by consolidating with the Arkansas Local Police and Fire Retirement System (LOPFI).
The PRB shall recommend financial assistance for eligible local pension funds according to the following five categories:
- Local pension funds which are expected to deplete their assets within the current year;
- Local pension funds which are expected to deplete their assets within the next 3 years;
- Local pension funds which are expected to deplete their assets within the next 10 years;
- Actuarially unsound funds; and
- Other local fire and police pension funds including those administered by LOPFI.
The full text of the provisions for the Fund can be found in A.C.A. 24-11-209.
Should you have questions regarding the Fund please contact the PRB at 1.866.859.1745 or in the Little Rock area at 682.1745.