(a)

1. (1) As provided in Arkansas Code § 24-11-217, beginning with the 2012 allocation, local plans meeting eligibility requirements will receive an additional allocation.
2. (2) The additional allocation is calculated so that no local plan will receive less than it would have received under the Guarantee Fund during the transition period of 2012 – 2015.
3. (3) After the 2015 allocation, no Guarantee Fund calculation will exist.

(c) Amount of additional allocation.

1. (1) An eligible underfunded plan will receive ten percent (10%) of the plan’s actuarial cost.
2. (2) For allocation years 2012 through 2015, the additional allocation will be no less than the amount that previously would have been provided by the Guarantee Fund as described in Arkansas Code § 24-11-209.

(d) Transition.

1. (1) During the 2012 through 2015 allocations, the following transition rule will ensure that a local plan receives at least the amount that would have been allocated before Acts 2011, No. 979.
2. (2) If a local plan is not eligible for an additional allocation under subsection (b) of this section, but would have been eligible for the assistance described in Arkansas Code § 24-11-209, the local plan will receive an allocation in the amount that would have been calculated under Arkansas Code § 24-11-209.

(e) Reduction of additional allocation. The Fire Allocation Fund and the Police Allocation Fund must cover specific funding of the following items within the allocation formula before the additional allocation:

1. (1) Forty percent (40%) Arkansas Local Police and Fire Retirement System-only cost, thirty percent (30%) local plan (including consolidation) cost, and one hundred percent (100%) system-only volunteer cost after the required employer contribution;
2. (2) Premium tax allocation expenses;
3. (3) Police Supplement, Future Supplement Fire, and Future Supplement Police; and
4. (4) Fire Protection Fund, State Police Retirement System, and at least four million dollars ($4,000,000) to state general revenue.