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Board adopts ordinance to consolidate police pension administration with state system
Summary
The board approved transferring administration of the Texarkana Police and Relief Fund to the Arkansas Local Police & Fire Retirement System; staff said the move requires a 3% COLA for existing members, should not raise employer contributions beyond current city funding, and must meet an October 31 deadline for paperwork.
The Board of Directors voted to transfer administration of the Texarkana Police and Relief Fund to the Arkansas Local Police & Fire Retirement System (LOPF). Staff said the consolidation is intended to stabilize benefits administration and relieve city staff of day-to-day reporting and paperwork.
David Clark, identified in the meeting as the executive director of the state system, said LOPF manages roughly $3.7 billion in assets and that the consolidation would allow the local plan to leverage pooled investments. Clark said the local plan’s current revenues—millage and court fines—exceed the calculated employer contribution by a little over $200,000 per year and that, if the city continues its current dedicated contributions, the consolidation would help protect benefits.
Staff said the consolidation requires a 3% cost-of-living increase (COLA) for existing plan members but would not require additional city contributions above present funding. The ordinance included an emergency clause to meet statute-driven timelines; staff said paperwork must be completed to meet an October 31 administrative deadline so the system can begin benefit payments on Jan. 1.
The board read the ordinance through three readings and adopted it by roll call; the board attached an emergency clause to satisfy the administrative timeline.
