October 19, 2016, Introduced by Reps. Runestad, Darany, Johnson, Graves, Kelly, Chatfield, Hooker, Howell, Glenn, Barrett, Somerville, Tedder, Cole, Vaupel and Robinson and referred to the Committee on Criminal Justice.
A bill to amend 1994 PA 350, entitled
"Public employee retirement benefits forfeiture act,"
by amending sections 2, 3, and 4 (MCL 38.2702, 38.2703, and
38.2704), sections 2 and 4 as amended by 1996 PA 467.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Felony arising out of his or her service as a public
employee" means 1 or more of the following:
(i) A felony resulting from the misuse of public funds.
(ii) A felony resulting from the receipt of a bribe or other
financial
benefit in that person's individual's
capacity as a
public employee.
(b)
"Member" means a member, vested former member, or deferred
member, or participant of a retirement system.
(c)
"Retirant" means a person an individual who has retired
with a retirement benefit payable from a retirement system.
(d) "Retirement benefit" means an annuity, a retirement
allowance, a pension, a benefit from employer contributions to a
defined contribution plan, an optional benefit, a postretirement
benefit, and any other right accrued or accruing to a member under
a retirement system. Retirement benefit does not include health
benefits provided to a retirant or his or her beneficiaries by a
retirement system.
(e) "Retirement system" means a public employee retirement
system established by this state or a political subdivision of this
state.
Sec. 3. A member or retirant who is convicted of or who enters
a nolo contendere plea accepted by a court for a felony arising out
of his or her service as a public employee is considered to have
breached the public trust and may have his or her rights to an
otherwise vested retirement benefit and all accumulated employer
contributions, including earnings on the employer contributions,
standing to that person's credit in the retirement system forfeited
as provided in this act. This act applies only to the retirement
system
of which the person individual
was a member or retirant at
the time the felony was committed and only to the retirement system
established by the entity affected by the felony.
Sec. 4. (1) If a member or retirant is convicted of or enters
a nolo contendere plea accepted by the court for a felony arising
out
of his or her service as a public employee, the court may shall
order forfeiture as provided in this section. If a court orders
forfeiture
under this section, the order shall must contain all of
the following, as applicable:
(a) The portion of the member's or retirant's retirement
benefit
under a retirement system established by that person's
individual's employer at the time the act or acts that resulted in
the
felony were committed that accrued to that the member
or
retirant on or after the date the first act that resulted in the
felony was committed is forfeited.
(b) The employer contributions to a member's or retirant's
individual account under a defined contribution plan established by
the retirement system, including earnings on the employer
contributions, on or after the date the first act that resulted in
the felony was committed are forfeited.
(c) (b)
The member's or retirant's
accumulated contributions
standing
to that person's individual's
credit in the individual
account
established for that purpose in the retirement system shall
must be refunded to the member or retirant.
(d) (c)
The Except for a retirement
benefit that is a benefit
from employer contributions to a defined contribution plan
forfeited under subdivision (b), the retirement system shall pay to
an individual, if any, who would otherwise be a beneficiary of the
member or retirant whose retirement benefit is being forfeited
under this act an actuarially equivalent monthly retirement
allowance
at the age that the member or retirant would have become
eligible for unreduced retirement benefits under that retirement
system.
(e) (d)
The retirement system shall provide
hospitalization
and medical coverage insurance to the member or retirant whose
retirement benefit is being forfeited under this act and to his or
her beneficiaries in the same manner and under the same
restrictions as is provided to other retirants and beneficiaries of
that retirement system.
(2) If a court enters an order described in subsection (1),
the clerk of the court shall deliver the order to the retirement
system.