Arkansas State Police Retirement System v. Sligh

Plaintiffs filed a class-action implant against the Arkansas State Police Retirement System (ASPRS) and its Trustees, in their official capacity, on behalf of certain members of the Arkansas State Police Retirement System Deferred Option Plan (DROP). Plaintiffs alleged, among other things, that Act 404 of 2007, which amended Ark. Code Ann. 24-6-304(b) to provide that that the ASPRS Board of Trustees shall set the interest rate and that the interest rate “shall not be greater than the actuarially assumed investment rate of return for that time,” was unconstitutional as applied to those officers who had elected to enter the DROP prior to the effective date of the Act. The circuit court granted Plaintiffs’ motion for summary judgment on all claims, concluding that retroactive application of Act 404 would impair and disturb contractual vested rights of the officers regarding the interest rate on their DROP contributions. The Supreme Court reversed and dismissed Plaintiffs’ complaint, holding that the circuit court erred in denying Defendants’ motion for summary judgment based on sovereign immunity. View "Arkansas State Police Retirement System v. Sligh" on Justia Law