Arkansas sets spending limits for public worker retirement systems

The Arkansas Public Employees Retirement System may spend up to $142,740,859 from its retirement system fund and $725,000,000 from cash funds. The retirement system fund allowance covers staff, operations, and other listed payments. Cash funds cover payments to beneficiaries by check or wire transfer. Spending cannot exceed the authorized amounts or the money available under law. The cash allowance includes $675,000,000 for benefits and $50,000,000 for refunds and reimbursements. These spending limits apply from July 1, 2026, through June 30, 2027.

The Arkansas Public Employees Retirement System may spend the listed amounts to run the state police and judicial retirement systems and pay their beneficiaries. Retirement-fund allowances cover operations and other listed payments. Cash allowances cover payments to beneficiaries by check or wire transfer. Spending cannot exceed the authorized amounts or the money available under law. State police cash funds cover up to $31,000,000 in benefits and $1,500,000 in refunds and reimbursements. Judicial cash funds cover up to $20,750,000 in benefits and $250,000 in refunds and reimbursements. These spending limits apply from July 1, 2026, through June 30, 2027.

The Arkansas Public Employees Retirement System may employ up to 78 regular workers and six temporary or part-time workers. The limits cover retirement system staff, including retirement counselors, accountants, and technology workers. Temporary or part-time workers may be hired when needed and must be paid within the applicable pay limits. Regular positions have assigned salary grades, which set their pay limits. The staffing limits apply to the 2026–27 budget year.

The judges’ and state police retirement funds may transfer money to the Arkansas Public Employees’ Retirement System Fund for shared administration and pension computer costs. The transfers cover the public employees retirement system’s costs of administering pensions for judges and state police. The state’s chief fiscal officer must approve each transfer. Administration transfers are capped at $150,000 from the Judges Retirement Fund and $250,000 from the State Police Retirement Fund. Each retirement fund may also transfer up to $50,000 for buying, setting up, maintaining, and running the pension computer system. The transfer authority applies from July 1, 2026, through June 30, 2027. The computer-system transfer authority also expires at the end of that budget year.

The Arkansas Public Employees Retirement System may make certain transfers between benefit and refund spending categories without advance legislative review. The exemption covers the public employees system’s cash benefit and refund categories and its operations category labeled Benefits-Non Employee. The exemption applies only to transfers needed because retirees change how they receive retirement benefits. All other requirements of the state law governing these transfers still apply. The review exemption applies from July 1, 2026, through June 30, 2027.