The Arkansas State Police Retirement System will likely ask the General Assembly for more funding in 2013 due to a rise in the system’s unfunded liabilities to $135 million in 2011 from $122 million in 2010.
Executive director Gail Stone told the system’s trustees that extra funding would be required after they set the state’s contribution into the system at 47.64% of an employee’s payroll cost in fiscal 2012, up from 44.67% in fiscal 2011.
At that rate, she said, the state will contribute $13.3 million in fiscal 2012, down from $14 million in fiscal 2011.
Arkansas has exceeded its required contributions for the five previous years in an effort to shore up the system’s finances.
The 2011 Legislature provided an additional revenue stream for the state troopers’ pension system with a surcharge on vehicle titles that will generate $4.6 million a year.
Other sources include taxes on insurance premiums and drivers’ license fees.
Along with growth in the unfunded liability, the system’s investments increased as well, to $223 million from $184 million last year.
The system, which is one of six operated by the state, is considered at 61% funded on an actuarial value. It includes 530 working members with an average salary of $52,950 a year and 554 retirees with annual pensions totaling $18 million a year.