govt.fyi
Back to HB 1327
Arkansas General Assembly· HB 1327Notification that HB1327 is now Act 451

An act TO AMEND THE LAW CONCERNING THE ELIGIBILITY OF 10 CERTAIN RETIRED EMPLOYEES UNDER THE STATE AND PUBLIC 11 SCHOOL LIFE AND HEALTH INSURANCE PROGRAM, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas          As Engrossed: H2/25/25
2 95th General Assembly
                                   A Bill

3 Regular Session, 2025                                            HOUSE BILL 1327

4

5 By: Representative Warren

6 By: Senator C. Penzo

7

8                            For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING THE ELIGIBILITY OF

10  CERTAIN RETIRED EMPLOYEES UNDER THE STATE AND PUBLIC

11  SCHOOL LIFE AND HEALTH INSURANCE PROGRAM; AND FOR

12  OTHER PURPOSES.

13

14

15                               Subtitle

16                       TO AMEND THE LAW CONCERNING THE

17                       ELIGIBILITY OF CERTAIN RETIRED EMPLOYEES

18                       UNDER THE STATE AND PUBLIC SCHOOL LIFE

19                       AND HEALTH INSURANCE PROGRAM.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23  SECTION 1. Arkansas Code � 21-5-411(a)(1)--(3), concerning the

24 eligibility of certain retired employees under the State and Public School

25 Life and Health Insurance Program, are amended to read as follows:

26  (a)(1) State employee retirees and public school retirees are

27 qualified to enroll in the State and Public School Life and Health Insurance

28 Program as retirees if they:

29                       (A) Have participated in the program State and Public

30 School Life and Health Insurance Program for at least five (5) cumulative

31 years before retirement as participating and are also vested members of:

32                           (i) The Arkansas Public Employees' Retirement

33 System, including the members of the legislative division and the contract

34 personnel of the Arkansas National Guard;

35                           (ii) The Arkansas Teacher Retirement System;

36                           (iii) The Arkansas State Highway Employees'

    *ANS174*                                                     02-25-2025 09:29:49 ANS174
    As Engrossed: H2/25/25                                                  HB1327

1 Retirement System;

2                           (iv) The Arkansas Judicial Retirement System; or

3                           (v) An alternate retirement plan as defined in � 24-

4 7-202; and

5             (B) Are retired and drawing benefits under as determined

6 by one (1) or more of the retirement systems listed under subdivision

7 (a)(1)(A) of this section.

8             (2)(A)(i) If a state employee retiree or a public school

9 employee retiree who is a member of a retirement system listed under

10 subdivision (a)(1)(A) of this section receives retirement benefits, thereby

11 becoming an active retiree, and has participated in the program State and

12 Public School Life and Health Insurance Program for at least five (5)

13 cumulative years before retirement, the active retiree may elect to enroll in

14 the program State and Public School Life and Health Insurance Program.

15                          (ii) The election to enroll in the program State and

16 Public School Life and Health Insurance Program shall be made within thirty

17 (30) days of the state employee retiree's or public school employee retiree's

18 becoming an active retiree and shall be made in writing to the Employee

19 Benefits Division on forms required by the division.

20            (B)(i) To Except when prohibited by federal law, to be

21 eligible to continue coverage or to qualify for coverage after electing to

22 decline participation in the program State and Public School Life and Health

23 Insurance Program, the retiree must have been covered for at least five (5)

24 cumulative years before the retiree's employment ended.

25                          (ii) If Except when prohibited by federal law, if a

26 retiree declines to participate in the program State and Public School Life

27 and Health Insurance Program at the time of retirement because the retiree is

28 already covered under another employer-sponsored group health insurance

29 policy, the retiree may make a one-time election to participate in the

30 program State and Public School Life and Health Insurance Program if the

31 retiree experiences a qualifying event with proof of continued insurance

32 coverage at the time of open enrollment and documentation that the retiree

33 was covered under the program State and Public School Life and Health

34 Insurance Program for at least five (5) cumulative years before retirement.

35            (C)(i) Except as provided in subdivision (a)(2)(C)(ii) of

36 this section, an active retiree's failure to make an election to participate

                              2  02-25-2025 09:29:49 ANS174
    As Engrossed: H2/25/25                                                  HB1327

1 in the program State and Public School Life and Health Insurance Program

2 during the thirty-day election period or an active retiree's election to

3 decline participation in the program State and Public School Life and Health

4 Insurance Program is final.

5                           (ii) If an active retiree declines participation in

6 the program State and Public School Life and Health Insurance Program because

7 the active retiree has health insurance coverage through another employer

8 group health plan program and the active retiree's coverage was subsequently

9 terminated because of a loss of eligibility, as defined by Internal Revenue

10 Service regulations, and provides information from the former insurance

11 company of the loss of eligibility, then the active retiree shall qualify for

12 participation in the program State and Public School Life and Health

13 Insurance Program upon confirmation that the active retiree participated in

14 the program State and Public School Life and Health Insurance Program for at

15 least five (5) cumulative years before retirement and payment of the

16 appropriate premium as determined by the State Board of Finance under

17 subdivision (a)(5) of this section if the active retiree applies for

18 participation in the program State and Public School Life and Health

19 Insurance Program within thirty (30) days of the loss of eligibility.

20  (3)(A) Notwithstanding any other provision to the contrary in

21 this section, a state employee or public school employee who has five (5)

22 cumulative years of participation in the program State and Public School Life

23 and Health Insurance Program before retirement and ten (10) or more years of

24 creditable service under the terms of a retirement plan program listed in

25 this section shall qualify for continued participation in the program State

26 and Public School Life and Health Insurance Program if the state employee or

27 public school employee is separated from employment because of the expiration

28 of a fixed period of employment.

29  (B)(i) A state employee or public school employee

30 qualifying for continued participation in the program State and Public School

31 Life and Health Insurance Program under this subsection shall be considered

32 an inactive retiree and shall have thirty-one (31) days from the effective

33 date of termination to elect to continue participation in the program State

34 and Public School Life and Health Insurance Program under this section by

35 notifying the division.

36                          (ii) The election to continue participation in the

                                     3  02-25-2025 09:29:49 ANS174
    As Engrossed: H2/25/25                                                 HB1327

1 program State and Public School Life and Health Insurance Program shall be

2 made in writing on forms required by the division.

3                 (C)(i) Except as provided in subdivision (a)(2)(B)(ii) of

4 this section, an inactive retiree's failure to elect to continue

5 participation in the program State and Public School Life and Health

6 Insurance Program during the thirty-day election period or an inactive

7 retiree's election to decline participation in the program State and Public

8 School Life and Health Insurance Program is final.

9                           (ii) If an inactive retiree as described in

10 subdivision (a)(3)(B) of this section declines participation in the program

11 State and Public School Life and Health Insurance Program because the

12 inactive retiree has health insurance coverage through another employer-

13 sponsored group health plan program and the inactive retiree's coverage is

14 subsequently terminated because of a loss of eligibility, then the inactive

15 retiree and any dependents shall qualify for participation in the program

16 State and Public School Life and Health Insurance Program if, within thirty

17 (30) days of the inactive retiree's involuntary loss of coverage, the

18 inactive retiree submits to the board:

19                          (a) Payment of the appropriate premium as

20 determined by the board under subdivision (a)(5) of this section;

21                          (b) Proof that, until the inactive retiree's

22 involuntary loss of coverage through another employer-sponsored group health

23 plan program, the coverage had been continuous; and

24                          (c) Proof that the inactive retiree

25 participated in the program State and Public School Life and Health Insurance

26 Program for at least five (5) cumulative years before retirement.

27                (D) An eligible inactive retiree shall be reclassified as

28 an active retiree upon electing to receive a retirement benefit by a

29 retirement system listed under subdivision (a)(1)(A) of this section and

30 shall be charged the premium rate appropriate for his or her rating category

31 as an active retiree as determined by the board under subdivision (a)(5) of

32 this section.

33

34  SECTION 2. Arkansas Code � 21-5-411(d)(2)(B), concerning the

35 eligibility of dependents of certain retired employees under the State and

36 Public School Life and Health Insurance Program, is amended to read as

                            4                           02-25-2025 09:29:49 ANS174
    As Engrossed: H2/25/25                                                HB1327

1 follows:

2           (B) Subsequent to the active or inactive retiree's

3 declination of health insurance coverage for the dependent under subdivision

4 (d)(2)(A) of this section, the dependent involuntarily lost his or her

5 employer-sponsored group health insurance coverage, and the loss of health

6 insurance coverage was not the result of:

7                           (i) Fraud; or

8                           (ii) Voluntary cessation of premium payment while

9 the active or inactive retiree was covered by a plan program option offered

10 under the program State and Public School Life and Health Insurance Program;

11 and

12

13                          /s/Warren

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

                            5                02-25-2025 09:29:49 ANS174
Every fact on this page links to its source, starting with the official bill record.