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Committee approves bill letting some employees count prior non‑APERS service toward APERS eligibility
Summary
House Bill 1325 would allow an APERS member who previously worked under an alternate state retirement plan (but did not vest or withdraw contributions) to be credited with those years for eligibility purposes; the committee approved the narrowly targeted measure after APERS director and actuary explained administrative limits and fiscal impact.
The committee approved House Bill 1325, which would permit certain APERS members to receive service credit for years spent under an alternate state retirement plan when those years did not produce vested benefits and the employee did not withdraw contributions.
Representative Cameron Cooper, District 57, presented the bill as a constituent‑driven measure addressing employees who worked briefly for an alternate state employer (an example in testimony was a member who worked about 21 months at UAMS) and therefore did not vest in that alternate system. Cooper said the bill is intended to be narrow and to help a small number of long‑serving state employees who otherwise have "nothing to show for those nearly 2 years of service."
APERS Director Amy Facher explained the administrative mechanics: if the employee did not withdraw contributions from the alternate plan and the alternate plan agrees the contributions were forfeited, APERS can credit the member with the prior years of service solely for the purpose of meeting APERS eligibility requirements. Director Facher stressed that the credited years count toward total service but do not increase the member’s APERS final average salary or multiplier. "The multiplier and final average compensation will only be based on the years that they were a contributing member," she said.
Senators and Representatives pressed for clarity on vesting and financial mechanics. Senator Dodson asked whether APERS receives funds from the alternate plan; Facher replied no — APERS would credit only the years of service; the alternate plan retains any actual contributions. Committee members confirmed that the credited service can allow members to meet vesting thresholds and retire under APERS, but the retirement amount would be based only on contributions actually made to APERS.
The actuary and APERS staff told the committee the fiscal analyses indicate the change would affect a relatively small number of employees and would not materially change APERS contribution rates. Representative Cooper said APERS legal counsel provided draft language.
The committee moved the bill and approved it on voice vote; no roll call was recorded in the transcript.
