PRB Overview

The Arkansas Fire and Police Pension Review Board (PRB) was established by Act 381 of 1983. Its legal charge is to enforce Arkansas laws which govern funding of local fire and police pension funds, which were established by Act 491 of 1921 and Act 250 of 1937, respectively, and to enforce the legal level of benefit payments from each pension fund. The law also charges the Board with approving decisions of staff, who certify to them action to be taken on benefit increase requests made by a local pension fund.

The Board has 9 voting members: Employers have 3 representatives; each employee group has 2 representatives (2 firefighters and 2 police officers); the public has 1 representative; and the Director of Finance and Administration or designee. Board members are appointed by the Governor and hold terms which are set by law. The Board must meet once a year, and may call other regular and special meetings at its discretion. These meetings are open to the public.

The law designates the executive director and staff of the Local Police and Fire Retirement System to serve the Pension Review Board.

The Board is authorized to make rules necessary to enforce the laws governing funding and benefit levels, and to withhold Premium Tax from a local pension fund when non-compliance with such laws is determined.

Reports

Annual Audit Report

2024 Independent Auditor's Report

2023 Independent Auditor's Report

2022 Independent Auditor's Report

Local Plans Summary of Valuations

2024 Summary of Valuations

2023 Summary of Valuations

2022 Summary of Valuations

State Insurance Premium Tax Report

2025 Premium Tax Allocation Report

Procedure for Increasing Benefits for a Locally Administered Local Plan

Arkansas law requires a locally administered local fire or police pension plan to process benefit increase requests through the Arkansas Fire and Police Pension Review Board (PRB). The PRB accepts benefit increase requests from April 1^st through September 30^th. If the PRB does not receive all required items, including payment for the benefit increase valuation fee, by the September 30^th date, the Local Plan will be required to wait until the following calendar year to proceed with the request. The following steps provide guidance for a benefit increase request. 

• First, the Local Plan board of trustees must adopt a resolution stating the amount of the proposed increase (in $5 increments for volunteer Local Plans) and to whom it would apply - current retirants; future retirants; surviving spouses/children; etc. At least 6 of the 7 trustees must approve and sign the resolution. Minutes of the same board meeting the resolution was adopted showing which trustees voted for/against the increase must be sent with the resolution to the PRB. The Local Plan shall ensure the minutes are accurate.

• Once the PRB receives the properly completed resolution and minutes, the Local Plan will be invoiced for the valuation fee. Actuarial work will begin after payment is received for the valuation fee.

• For non-standard Local Plans, the valuation fee is $900 for the first proposal and $500 for each additional proposal in the resolution. A Local Plan may also ask if the first proposal cannot be approved, for the actuary to determine the highest amount permitted i.e. a "random search" valuation. The random search valuation fee is $1,400.
  

• An alternate cash flow valuation may also be used.  However, this type of benefit increase valuation entails a considerable amount of support documentation to be provided to the PRB and requires the Local Plan to be in a well-funded condition.  An alternate cash flow valuation fee is $3,000.

• Benefit increase valuations take approximately four (4) weeks to complete. The executive director shall certify whether or not the benefit increase is approved. The Local Plan board of trustees must file a copy of the benefit increase resolution, actuarial valuation, and the executive director's certification with the circuit and city clerk's office of the county/city where the Local Plan is located.

PRB Rules 2 and 4 provide greater details on benefit increases (see PRB Rules).

Locally Administered Local Plan Annual Financial Disclosure

Act 700 of 1979, as amended, (ACA 24-11-101 et. seq.) requires each locally administered Local Plan to disclose its annual financial activity to the PRB. This annual report, may be completed by a CPA, accountant, city clerk, recorder or treasurer, and is a compilation of annual financial activity of the Local Plan. Reporting requirements are addressed in PRB Rule 3.

All Premium Tax may be withheld and potentially forfeited for any Local Plan and its sponsoring location that does not satisfy the reporting requirements.