There was little fuss on Monday as council members voted 5-1, at a brief 6-minute meeting, to enroll Decatur police officers in the Arkansas Local Police and Fire Retirement System with back-pay.
AT A GLANCE
What is LOPFI?
The Arkansas Local Police and Fire Retirement System was created to provide retirement coverage for police officers and fi refighters and does not extend to civilian personnel. It provides a pension-like pay out of up to 86 percent of an officer’s salary after 28 years of service.
What does the law say?
Arkansas Code 24-10-302 requires that law enforcement officers and firefighters either be covered by LOPFI or have no other retirement program provided other than Social Security. Currently cities enrolling in LOPFI must pay officer’s back-pay to their hire date. After Jan. 1, 2012, back-pay will not be required.
Yearly premium costs for six police officers Current 401K plan: 4 percent of the officers’ salary or $7,300 for four officers.
LOPFI without back-pay: 17 percent of the officers’ salary or $40,900. After state reimbursement the total cost would be $24,500.
LOPFI with back-pay: 25 percent of officers’ salary or $59,500. After the state reimburses 40 percent, that total would be decreased to $35,700.
This story is only available from the Westside Eagle Observer archives. Stories can be purchased individually for $2.95. Click here to search for this story in the archives.
News, Pages 3 on 11/23/2011
Print Headline: Officers to be enrolled in LOPFI