The troubled pension system for Arkansas State Police employees would benefit by $4.6 million each year under a legislative proposal to double vehicle title fees.
SB 183 would increase the title and duplicate title fee to $2, and the fee for a title application to $8.
The Joint Committee on Public Retirement and Social Security Programs recommended passage of measure last week and sent it to the House for consideration.
Sen. Michael Lamoureux, R-Russellville, said his proposal would provide a permanent solution to the system’s unfunded liability problems.
“I think this is that one-time fix,” he told the committee. “I think this is the least painful way to accomplish something we have to accomplish.”
The police pension system received $9 million from surplus state revenues in 2009 in an effort to keep it solvent. It was merged into the Arkansas Public Employees Retirement System at the same time.
Gail Stone, executive director of the state pension system, said Lamoureux’s proposal would provide a stable, reliable source of revenue for the state police system.
Without the new revenue source, Stone said, she could be asking lawmakers for an infusion of up to $18 million to prop up the system.
The state police retirement system has $216 million of assets, Stone said, and $123 million of unfunded liabilities. The state put $23.2 million into the system in 2009, including the $9 million of surplus funds, and paid out $20.3 million of benefits during fiscal 2010.
System participants include 545 employees with an average salary of $52,319, Stone said, and 467 retirees who receive benefits averaging $33,186 a year.
