(a) An actuary certified by the Society of Actuaries shall evaluate the information submitted under this section and §§ 24-11-213 and 24-11-215 to determine the amount of the premium tax revenues to be directed to each city, town, or fire protection district.
(b)
(1) It is the intent of the General Assembly that the allocation of revenues to the Firemen's and Police Officers' Pension and Relief Fund be directed to a city, town, or fire protection district based on the actuarial cost of their retirement programs.
(2) The actuarial cost for a calendar year:
(A)
(i) For a group that is a member of the Arkansas Local Police and Fire Retirement System, shall equal that group's calculated contribution rate, as defined in § 24-10-405, as of the beginning of that calendar year multiplied by that group's estimated annual payroll as of the beginning of that calendar year.
(ii) However, for volunteer members the actuarial cost shall equal the group's per-person cost, less the mandatory employer per-person cost, as of the beginning of that calendar year multiplied by the number of volunteer members in that group as of the beginning of that calendar year.
(iii) The additional cost for a group that is a member of the system that results from a consolidation of a local policemen's pension and relief fund or a local firemen's relief and pension fund shall be calculated separately for this allocation purpose;
(B) For a group that is covered by a local policemen's pension and relief fund or a local firemen's relief and pension fund, shall be the cost calculated by the actuary for the Arkansas Fire and Police Pension Review Board for the preceding calendar year; and
(C)
(i) An actuarial cost in this subsection shall be calculated on the base benefit.
(ii) The base benefit is the minimum amount prescribed under § 24-10-101 et seq. and § 24-11-101 et seq., excluding all elective benefit increases.
(c) The amount of revenues to be directed to cities, towns, and fire protection districts shall equal the amount in the Firemen's and Police Officers' Pension and Relief Fund less the payment for the administrative and actuarial expenses of the board under subsection (i) of this section and under § 24-11-203.
(d) The amount of revenue directed to a city, town, or fire protection district shall equal the amount described in subsection (c) of this section less the amount described in subsection (e) of this section.
(e) The Future Supplement Fund shall be allocated the amount determined as the total amount under § 24-11-212.
(f)
(1)
(A) All cities, towns, and fire protection districts having fire departments organized under §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-813 — 24-11-815, and 24-11-818 — 24-11-820, and all cities and towns having police departments organized under § 24-11-101 et seq., § 24-11-201 et seq., § 24-11-301 et seq., § 24-11-401 et seq., and §§ 24-11-801 — 24-11-807, 24-11-809, 24-11-811 — 24-11-820, 24-11-822 — 24-11-827, 24-11-829, and 24-11-830 that have provided the information required under §§ 24-11-206 and 24-11-213 to the board and to the system shall qualify for participation in the revenues distributed.
(B) Those cities, towns, and fire protection districts that make an irrevocable decision to elect coverage in the Arkansas Local Police and Fire Retirement System by December 14 shall qualify for participation in the revenues distributed in the following calendar year.
(C) Those cities, towns, and fire protection districts that have not provided the required information shall not qualify for participation in the revenues distributed.
(2) On or before June 15 of each calendar year after 2002, the board shall certify to the Department of Finance and Administration the exact amount of tax revenues each city, town, or fire protection district is entitled to receive for the calendar year under this section.
(3) The Arkansas Fire Training Academy and the Arkansas Law Enforcement Training Academy are not eligible for participation in the receipt of or funding with premium tax revenues.
(g) All nonprofit corporations formed for fire protection purposes and that participate in the system shall participate in the distribution of insurance premium tax revenues to the same extent as other fire protection organizations under this section, §§ 24-10-401 — 24-10-409, 24-11-809, and 26-57-610, and any other laws providing for the distribution of insurance premium tax moneys to fire protection organizations.
(h)
(1) There shall be no administrative fees charged to these entities by the board upon qualification.
(2) The board shall incur all administrative and actuarial costs associated with obtaining the information required under this section.
(i)
(1) The board shall establish a certain percentage of the insurance tax revenues to use to meet its proper actuarial expenses and administrative costs incurred in obtaining and evaluating the population information required under § 24-11-213, but in no event shall the board be entitled to more than one percent (1%) of the Firemen's and Police Officers' Pension and Relief Fund as defined in § 24-11-809(a)(2).
(2) This assessment shall be collected in addition to the assessment provided in § 24-11-203.
(3) This revenue shall also be used to provide the administrative costs incurred in obtaining and evaluating the population information for unqualified cities, towns, and fire protection districts.
(j) The amount allocated to groups that are members of the Arkansas Local Police and Fire Retirement System excluding consolidation costs under subdivision (b)(2)(A)(iii) of this section is the actuarial cost under subdivision (b)(2) of this section multiplied by the factor in § 24-11-215.
(k) The amount allocated to groups that are covered by a local firemen's relief and pension fund or a local policemen's pension and relief fund including consolidation costs under subdivision (b)(2)(A)(iii) of this section is the actuarial cost under subdivision (b)(2) of this section multiplied by the factor in § 24-11-215.
(l) The Arkansas Fire and Police Pension Review Board shall promulgate rules that are necessary to implement this section.