(a) The board of trustees of a municipal firemen's relief and pension fund and the board of trustees of a policemen's pension and relief fund are authorized to increase benefits for future or current retired members and beneficiaries of the firemen's relief and pension fund or policemen's pension and relief fund.
(b) Any proposed increase by the board of trustees shall be in strict compliance with the following conditions:
(1) The board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund shall adopt a resolution approved by not less than three-fourths (¾) of the membership of the board of trustees, outlining the proposed increase in benefits;
(2)
(A) The action proposed by the board of trustees under the resolution shall be determined by an actuarial valuation to be actuarially feasible to the extent that the unfunded liabilities resulting from the proposed increase in member or beneficiary benefits under the fund will be funded over a period of not more than thirty (30) years, pursuant to rules promulgated by the Arkansas Fire and Police Pension Review Board, based on the current available and known revenue or income sources available to the retirement and pension fund.
(B) The actuarial valuations shall be made by an actuary who is a member of the American Academy of Actuaries and who is employed by the review board.
(C) The Executive Director of the Arkansas Fire and Police Pension Review Board shall state the actuarial findings in writing to the board of trustees and shall certify the appropriate action to be taken;
(3)
(A) A copy of the resolution adopted by the board of trustees of the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund outlining the proposed increase in member or beneficiary benefits is filed with the executive director, who shall determine that an actuarial valuation has been made in accordance with the provisions of this subchapter and that the actuarial valuation had determined that the proposed increase in benefits may be funded, over a period of time set forth in subdivision (b)(2)(A) of this section, based on available or defined revenue sources of the relief fund, in which event the executive director may approve the proposed increase to member beneficiary benefits under the firemen's relief and pension fund or the board of trustees of the policemen's pension and relief fund.
(B) The board of trustees of the firemen's relief and pension fund or policemen's pension and relief fund shall comply with the appropriate action as approved by the executive director; and
(4)
(A) A copy of the resolution adopted by the board of trustees, a copy of the actuarial valuation, and a copy of the action taken by the executive director are filed with the circuit clerk and the city clerk of the county and city in which the firemen's relief and pension fund or policemen's pension and relief fund is located.
(B) All actions taken by the executive director shall be subject to review and acceptance by the Arkansas Fire and Police Pension Review Board.
(c) If it is determined by the review board that a local pension plan is not complying with the provisions of law governing benefit increases, the executive director shall certify that noncompliance to the Secretary of the Department of Finance and Administration who shall withhold all moneys otherwise due the plan from the state until compliance is achieved.