(a)

1. (1) There are two (2) methods by which a local plan may increase benefits to its members.
2. (2) The first is by legislation which mandates an increase.
3. (3) The second is by securing an actuarial valuation which demonstrates that a pension fund can support the cost of the increased benefit over a defined period of years.

(c) If a local board of trustees wishes to process a benefit increase through the Arkansas Fire and Police Pension Review Board, the following procedure must be used:

1. (1)

   1. (A) The local board of trustees must adopt a resolution to raise benefits to the new amount.
   2. (B) The resolution must be signed by three-quarters (3/4) of the membership of the local board (at least six (6) of seven (7) trustees must sign).
   3. (C)

(i) A certified copy of the minutes of the local board meeting at which the resolution was adopted must accompany the resolution.

1. (ii) The minutes must reflect who voted for the benefit increase resolution and who voted against it.

   1. (iii) The certification shall be by the Executive Director of the Arkansas Fire and Police Pension Review Board;

2. (2)

   1. (A) The resolution must state how much the increase would be and to whom it would apply:

      1. (i) Current retirants only;
      2. (ii) Future retirants only;
      3. (iii) Current and future retirants;
      4. (iv) Current surviving spouses and/or children;
      5. (v) Future surviving spouses and/or children; or
      6. (vi) Current and future surviving spouses.
   2. (B) Police pension funds may include dependent parents;
3. (3) The completed resolution should be mailed to: Arkansas Fire and Police Pension Review Board 620 W. 3rd Street, Suite 200 Little Rock, AR 72201-2223

4. (4)

   1. (A) A determination will be made by Arkansas Fire and Police Pension Review Board staff that, based on all available financial information on the fund, the benefit increase request should be processed.
   2. (B) The pension fund will be invoiced for the actuarial valuation and the pension fund should return a check promptly for that amount to the above address.
   3. (C) No actuarial work will be processed until payment is received;
5. (5) Once the check has been received, it will be submitted to the actuary who will begin work on the benefit increase valuation;

6. (6)

   1. (A) When the valuation results are received, the executive director shall certify to the local board whether or not the increased benefit can be given.

   2. (B)

      1. (i) If denied, the local board may appeal the findings of the staff to the Arkansas Fire and Police Pension Review Board, upon a written request to do so.
      2. (ii) Benefit increases which are approved must also be accepted by the Arkansas Fire and Police Pension Review Board.
   3. (C) The executive director may make benefit increases retroactive to the date of the local board resolution requesting the increase, or to a later date, depending on the circumstances of the increase; and
7. (7) When an increase is granted, a copy of the resolution, actuarial valuation, and executive director’s certification must be filed by the local board of trustees with the circuit and city clerks of the county and city in which the local plan is located.