Gonzales v. City of DeWitt, 357 Ark. 10

Summary

The Arkansas Supreme Court reviewed whether the City of DeWitt violated the Arkansas Local Police and Fire Retirement System statute by adopting a Pan American Life retirement plan for its police officers. The court held that LOPFI participation was discretionary, but that the statute prohibited a political subdivision from commencing coverage under another plan similar in purpose to LOPFI, creating a material factual issue requiring reversal of summary judgment and remand. The court further held that, if a violation were established, the trial court could order the city to terminate the alternative retirement coverage.

Holdings

1. Participation in LOPFI under § 24-10-302(a) is discretionary for a political subdivision without a relief fund; the statute does not mandate that the City of DeWitt elect LOPFI coverage.
2. If a political subdivision does not participate in LOPFI, it may not commence coverage of police officers or firefighters under another plan similar in purpose to LOPFI, except Social Security.
3. Summary judgment was improper because whether the Pan American Life plan was similar in purpose to LOPFI presented a material factual issue for the trial court.
4. If the trial court determines that the Pan American plan violates § 24-10-302(c), it may order DeWitt to terminate the plan's retirement coverage for its police officers, although it may not force DeWitt to participate in LOPFI.

Questions Presented

1. Whether Ark. Code Ann. § 24-10-302(a), governing political subdivisions without a qualifying relief fund, requires the City of DeWitt to participate in LOPFI.
2. Whether the City's adoption of the Pan American Life retirement plan potentially violated Ark. Code Ann. § 24-10-302(c), which prohibits commencing coverage under another plan similar in purpose to LOPFI.
3. Whether summary judgment was proper when the record left unresolved whether the Pan American plan was similar in purpose to LOPFI.
4. Whether the circuit court had authority to order a remedy if the City violated § 24-10-302(c).

Disposition

reversed_and_remanded