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Committee allows cities flexibility to fund municipal retirement pay
Summary
Senate Bill 153 passed committee, removing a statutory requirement that cities pay municipal retirement contributions from the general fund; the change allows cities to draw retirement payments from any available municipal account.
The committee passed Senate Bill 153, which amends Arkansas Code 24-12-121 to give cities discretion to pay municipal retirement plan contributions from any available account rather than requiring that payments come from the general fund.
Representative Les Warren summarized the bill as a simplification of administrative restrictions: the city must still pay its retirement obligations, but this change allows local governments to select the account that best fits their accounting practices.
There was no public testimony for or against the bill, and the committee passed the measure on a voice vote.
Ending: The bill removes a one‑account restriction and preserves the underlying duty for cities to pay retirement benefits.
