(a) Fire.

1. (1) Under current law, employees who wish to be covered by local fire pension funds are required to contribute six percent (6%) of their gross pay to the local plan or, in the case of volunteers, twelve dollars ($12.00) annually.
2. (2) Arkansas Code § 24-11-816 provides that any firefighter who fails or refuses to pay the required contribution shall forfeit the right to receive benefits from the local plan.
3. (3) The contribution requirement does not apply to retired members or any active member with twenty (20) years of service.

4. (4)

   1. (A) If staff determines that an employee or employees of a local plan are not making the required contributions, staff shall notify the chief executive of the employing group by certified mail that the:

(i) Contributions are required; and

1. (ii) Employees are no longer eligible for pension benefits unless the current and past due contributions are made.

   1. (B) The employer shall respond in writing within eight (8) weeks to notify the Arkansas Fire and Police Pension Review Board as to which employees have:

      1. (i) Made their contributions; and
      2. (ii) Chosen to forfeit their rights to coverage.

2. (5) In such cases in which no active employees have made or are making the required contributions, the board may:

   1. (A) Make a determination after eight (8) weeks from notification of the participating employer that the local plan fund is inactive; and
   2. (B) Remove the local plan from the annual certification list for premium tax turnback.
3. (6) Staff determinations regarding employee contributions shall be made from the annual financial disclosure reports submitted by the local plans.

4. (7)

   1. (A) If an employee or employees disagree with staff findings regarding employee contributions, the affected party may request in writing a hearing before the board.
   2. (B) The board shall schedule the hearing for its next regular meeting but may schedule the hearing for a future meeting if requested by the affected party.

5. (8) Premium tax turnback will be withheld from the local plan and the sponsoring location, as described in 24 CAR § 20-1201 et seq., until:

   1. (A) Staff findings are overturned;
   2. (B) The required employee contributions are made; or
   3. (C) The ineligible employees are removed from the pension rolls.

(b) Police.

1. (1)

   1. (A) Under current law, all employees who are eligible to be covered by a local police pension plan are required to accept coverage.
   2. (B) Employees who are not covered by Social Security are required to contribute six percent (6%) of their gross pay to the local plan.
   3. (C) Employees who are covered by Social Security are required to contribute four percent (4%) of their gross pay to the local plan unless a majority of the contributing members vote to contribute more than four percent (4%), but the contribution shall not exceed six percent (6%).
2. (2) If staff determines that an employee or employees of a local plan are not making the required contributions, staff shall notify the chief executive of the employing group by certified mail that the contributions are required.
3. (3) The employer shall respond in writing within eight (8) weeks to notify the board that the required contributions are being made.
4. (4) Staff determinations regarding employee contributions shall be made from the annual financial disclosure reports submitted by the local plans.

5. (5)

   1. (A) If an employee or employees disagree with staff findings regarding employee contributions, the affected party may request in writing a hearing before the board.
   2. (B) The board shall schedule the hearing for its next regular meeting but may schedule the hearing for a future meeting if requested by the affected party.
6. (6) Premium tax turnback will be withheld from the local plan and the sponsoring location, as described in 24 CAR § 20-1201 et seq., until either staff findings are overturned or the required employee contributions are made.