CENTERTON (KFSM) -- Leaders in Centerton face losing state funding after the legality of their current police chief's service was called into question.
The City of Centerton hired Police Chief Rodney Reed away from the Bethel Heights Police Department in April, but according to the Arkansas Local Police and Retirement System, known as LOPFI, Reed's switch in departments has made him ineligible to serve as an officer in Arkansas.
Centerton City Attorney Brian Rabal said city leaders just recently found out about the problem.
"There is concern whether or not he is actually retired or not," Rabal said. "And there is a possibility that he may not be eligible for benefits here in Centerton."
David Clark, the executive director of LOPFI, said the system offers several retirement plans, but the one Reed chose while working for Bethel Heights is worded in a way that does not allow him to work as a law enforcement officer in the state if he retires, or if he terminates his employment with that city, which Reed did when he left Bethel Heights for Centerton.
"He was not eligible to be reemployed in a new retirement-system-covered position anywhere else in the state," Clark said.
Clark said LOPFI cannot allow Reed to work for Centerton, because allowing someone to receive both a retirment check and paycheck is against the law.
"This is a product of law, and we are bound to follow law," he said.
Centerton leaders said they still hope to keep Reed as their chief.
"It is just a matter of us determining a way to allow him to be police chief," Rabal said.
However, Clark said there are no options in this scenario.
"There is actually only one option, and that is to terminate the employment of this individual," he said.
If the city does not find another chief, the state could choose to put a hold on the funding it gives to Centerton, according to Clark. City leaders do not believe the situation will come to that point, Rabal said.
Rabal told 5NEWS Reed was not available for comment, because he is out of town at a police chief conference.