Public Retirement & Social Security Programs-Joint

Jerseys a quorum according to my phone it is nine o'clock so that clock back there may need to be adjusted a little bit certainly appreciate you all being here this morning anybody in the audience that wants to speak for against the bill you need to sign up to do that so of really appreciate everybody being here this morning but we've got to get straight to business why ask representative warned if he wants to make any comments. Let everyone here today. Thank you representative warned and without objection we're going moved to house bill twelve forty six and all of that with twelve forty seven representative Vaught you're recognized. The president your bill house bill twelve forty six thank you Mr chair DM Vaught district eighty seven for the record a house bill twelve forty six may I have Mister Thatcher please join me at the time they come to the table and. Introduce yourself for the record and you'll be recognized. Sure Director of acres thank you. Thank you Mr chair of this bill clarifies that the effective date of survivor benefits is the month following the death of a member or retire AT I'm it creates two sections of the Arkansas code code to cover both tier one and tier two plans of the Arkansas judicial retirement system this bill clarifies that the effective date of monthly benefits payable to survivor of deceased members and deceased retirees is the month following the death of the member or retiree. Thank you members do you have any questions. The flight no questions would you like one of sorry about that. Senator Hammer you're recognized for a question. Thank you Mr good morning the I guess wanna make sure I got my mind around this is just in the event that maybe somebody two or three months after the death. Doesn't get their paperwork in it and this would pay retroactive back to that is that kind of the intent of what it's about. Yes that is correct okay is it a common occurrence on one people are time of grief you know can you just not thinking about taking care of business is it is is a common occurrence for it happens so we wanted to clarify the language to make sure it was in code this actually happened to one of my judges okay and. Okay I wanted to make sure I was clear did you thank you. Representive Andrews you're recognized for a question A person Vaught this is changes to the month after death what's the current date now. Well the code does say in one place currently that we will pay the month after from the first of the month after death but in another area of the code it says that will pay after receiving the application some directors throughout the years have interpreted that that it would not be retroactive and we would only pay from the first after application I don't see it that way and and represent about greed and we we just wanna clarify thank you. Thank you senator Hammer you're recognized for another question. Thank you Mr and if I got my mind right in like in the social security if you get your check at a certain time after the first month that they actually go back and they'll take that money back away from the you know of from whoever the beneficiary would because not there's do we so say somebody dies on the fifth of the month and they very receive their check we don't go back and take that money back from them from their survivor do we. Yes what we pointed. We we would leave the five days for them but we would take a pro rated amount back okay so why why would we take this back to the date of death and so there's no gap in them being able to receive any other benefit because somebody died on the field this goes to the or maybe nothing right down the field we're doing the month after they die they're gonna have thirty eight gap in loss of income or my thinking right they have a twenty five gap that gap. I think as long as we were where we would only pay him for the five days on the first of the following month. Would start now I'm not saying that correctly we would start the first of the following month we would pay them for the pro rated amount when the thank god is that correct. Doing somebody else to the table. And I'm just trying to get it figured out for the and I would hate to quote create a twenty five day gap in the loss of income for the survivor if instead of the month after we could take this back to the occurrence of the date of death of the day after the date of death do just screwed up my present issue so for the record. Laura Gilson and general counsel apers so there couple different situations for survivors one is if it's a active member and may die before they retire and then the others somebody's receiving retirement benefits and so those amounts are calculated differently this the survivor is going to have their benefit calculated under whatever option the member has chosen for them and so you know we have to reconcile that but either way the survivor you know we'll we'll get their benefits and it will be retroactive to you know the months after the date of death of the member. Okay sure Sir potential that they would the survivor would go. Maybe it that between the date of death and the end of the month where this is going to kick in the next month from up if I think if I if I hear what you're saying if that check has already been deposited we have within a certain window we can reverse that kind of like so security doesn't it you know you mentioned that. But it goes beyond a certain date we can't so they're still getting the member and that amount is reconciled from the survivor benefit amount that's paid so Okay yes. Okay all right thank you thank for expansion. Any further questions. Is there anybody in the audience who wishes to speak for against this bill. I think we got under the table would you like to close for your bill I'm because for my bill I appreciate a good vote thank you have a motion do pass by representative very second. There's second all in favor say aye. Any opposed graduation your bill passed you're now recognized to present house bill twelve forty seven so twelve forty seven is identical to the twelve forty six except for it's the state police retirement it's just going to clarify the effective date of payments to survivors and beneficiaries in the month following the death of the member or retiree. With that I'm I'm to answer any other questions. Senator questions with are there anybody in the audience that would like to speak for against this bill. Hi we have a motion do pass by representative very I'm sorry did you have class okay representative areas make a motion to pastor of second I have a second all in favor say aye any opposed congratulations thank you Mr chair thank you Committee Senator Hickey you are recognized to present Senate bill one twenty six. Thank you Mr chair I'd like it's better to build a study that's okay with you that's great you're recognized miss Fletcher she's already induced or sell. You ready. We're ready. Okay the first one is going to be S. B. one twenty six. read to read what I have here this bill amends Arkansas Code twenty four four six oh six which regards the options for beneficiary that a member may choose when they retire the Bill cpas specifies their members federal tax return we used for proof of dependency of a child or parent in order for these survivors to be eligible to receive a survivor benefit just kind of let you all know what I remember when reading through this is the current language actually says that that they would have to show that they were giving one fifty percent of the care that's a subjective a subjective matter that we couldn't come up with so that's why that we took it back to the federal tax return it also says that they have to be on that tax return for one year of course because all of you know that those returns are going to be a run when you're behind so of course that would allow for that to to show up for that first time on that first tax return. This is actually what I present doing in practice but the current law has been too vague to to determine that dependency the bill also strikes an obsolete section that applied to surviving spouses who retire before July first nineteen sixty seven since there was no such beneficiary still surviving the other changes are grammatical or technical corrections to do that do not affect these benefits the bill also amends Arkansas Code twenty four four six await which applies to a member who dies before retiring in specify their members tax return will be used for proof dependency of a child a parent order for those survivors B. O. did read receive a survivor benefit. Is amended member also moves language in twenty four four six oh eight regarding when benefits are paid to twenty four four six oh nine so that there is one single section of wall of that states when the benefits are paid all of the ones are all other of corrections are going to be technical. I'll attempt to answer any questions. Members do you have any questions for Senator Hickey. Are you please give right there you go representative very you're recognized for a question thank you Mr chairman would Senator Hickey would a tax return already always be required in these cases yes Sir I mean so these people automatically of income to substantiate having to do a tax return. We'll the the main thing would be that they would have to check you know that dependent box on there you don't have to prove up that that survivor. That would that would be something according to this legislation that would would be specific to that to be able to get it okay all right thank you yes. Thank you any other questions. Seeing none Cedric you would you like to close for your bill I'm closer. Reserve an audience or speak for against this bill. Seeing none Senator Hickey is already closed under Tina motion. I have a motion and a second. Do pass all in favor say aye. Any opposed. Congratulations your bills passed you're recognized to present Senate bill one twenty seven. Okay member Senate bills but one twenty seven definitions under a bridge plan need to be amended to conform with legislation that was passed in twenty twenty one and clarify the definition to be consistent with the administration of benefits for instance the amended definitions of contributory member member and final average compensation aligns with the X. three sixty five and three seventy of our twenty twenty one session which gradually change the contribution rate for contributory members and created a new section regarding final average compensation. The amended definition of compensation uses a member's form W. two reported by the participating public employer as proof of employment and the amended definition of public safety member is needed to clarify covered employment in a person. The Amendment Arkansas Code twenty four four five twenty one which defines how credited services required to members or technical corrections only but are necessary to reference credited service for contributory members employed before July first of two thousand five and after under that subchapter eleven. The Amendment two Arkansas Code twenty four four six oh three addresses members who leave employment and receive a refund of their contributions but are reemployed by neighbours participating public employer service earns before the refund it service earned before the refund is not restored unless they repay that contribution that they had from the previous employment The Amendment Arkansas Code twenty four six eleven addresses members who have a very little public service and therefore their monthly benefit is small the amendment restores a section of wall that was inadvertently repealed into two thousand one. Was it really two thousand one was at twenty twenty one. When that was repealed what was that that other language. Okay all right I wanna make sure I was telling you all right I thought that might have been when we did that step two years ago so it was in two thousand one. Which repealed subchapter three and created subchapter four and is consistent with a president ministration of benefits regarding small monthly benefit payouts finally amendment Arkansas Code twenty four four channel two is needed because the members monthly retirement benefit maybe garnish for unpaid child support payments. Under Arkansas code nineteen fourteen one oh two however this was not to explicitly stated in a press plan therefore this amendment is needed to avoid any doubt of the legal obligation vapors in the event a retirement benefit should benefit is garnished to pay child support by the court. Attempt to answer any questions on the thank you Senator Hickey any questions. Thereby an audience to speak for against this bill. Seeing none Senator Hickey are you close for the bill yes Sir I'm closed. What's the will of the committee I have a motion do pass the second all in favor say aye. Any opposed congratulations your bill is passed Senator Hickey you're recognized to present. Senate bill one twenty eight all right members S. B. one twenty rate eight was act under Act for fifteen of twenty twenty one that changed a as a as P. employer contribution rate from twenty two to twenty six well the specific this we're not changing this year this was from the legislation that we did two years ago of for the Arkansas state police retirement system plan chapter two that retirement plan title twenty four that pertains to public employee plans generally also list listed AS Peoria's contribution rate and was inadvertently not amended during the twenty twenty one session this corrects that oversight in tile twenty four chapter two and again this does not affect the current employer rate which then affects since twenty twenty one this bill is also needed because the members monthly retirement benefit maybe garnish for the unpaid child support just like we discussed in the of the previous previous bill we're just getting all of this consistent throughout our code so. finished with that one if there's any question numbers do we have any questions for Senator Hickey. Seeing none is there anybody in the audience to speak for against this bill. Not send anybody are you close for your bill senator yes I'm close what's of will of committee I have a motion do pass and a second. All in favor say aye. Any opposed graduations your bills passed. Rick you're recognized you're recognized to present Senate bill one twenty nine thank you are better because the thank you Mr. All right members on this particular one Arkansas Code twenty four six to seventeen applies to the survivor benefit of a tier one member who dies before they retired from a S. P. R. S. the bill specifies. That are members federal tax return will be used in the proof of dependency the same as the other one again we're making this consistent so that they'll be this be the same. And then Arkansas Code twenty four six four wait applies to tier two members and currently requires a member to be married to their spouse for one year before the member can designate designate them as an option beneficiary however this is different than the marriage peer period required for a spousal survivor benefit if the member dies before they retire. This amendment standardize a six month marriage period for either pre or post retirement this section bill also applies a federal tax returns are used for the proof of dependency again just like the other ones And. That there's another section which is the same thing with the dependency of the child in the tax return in the final section section of the bill so with that I'll attempt to answer any questions thank you Senator Hickey any questions. Same does anybody in the audience to speak for against this bill. Not seeing anybody was a pleasure of the Committee I have a motion by representative Perry in the second I represent a fight. Any discussion all in favor say aye. In the opposed congratulations your bill is passed thank you members. Folks I believe that the concludes our business for today appreciate you showing up early.