§ 24-11-435 - Buy-out option. - Arkansas Statutes

24-11-435. Buy-out option.

(a) (1) Any city of the first class which has a local police pension and relief fund which covers only retired members, no longer accepts new members, and has over four hundred percent (400%) of its retired life liabilities covered by assets may use those funds to buy out the beneficiaries or otherwise assure that the beneficiaries will receive all benefits to which they are entitled under the plan.

(2) Thereafter, the city by ordinance may dissolve the police retirement plan and transfer all surplus funds to the city treasury to be used solely for capital improvements of the city.

(b) All turnback funds from insurance premium taxes or other sources which the municipal police retirement plan or the city previously received to help fund the retirement plan shall thereafter be remitted to the city to be used for retirement benefits for uniformed and nonuniformed employees.