October 23, 2007, Introduced by Reps. Meltzer, Amos, Nofs, Miller, Wenke, Robertson, Schuitmaker, Knollenberg, Brandenburg and Stakoe and referred to the Committee on Government Operations.
A bill to amend 1994 PA 350, entitled
"Public employee retirement benefits forfeiture act,"
by amending sections 3 and 4 (MCL 38.2703 and 38.2704), section 4
as amended by 1996 PA 467.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 shall
have his or her rights to
an otherwise vested retirement benefit and all accumulated
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 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 The order shall 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
employer at the time the act or acts that resulted in the felony
were committed that accrued to that member or retirant on or after
the date the first act that resulted in the felony was committed is
forfeited.
(b) The member's or retirant's accumulated contributions
standing to that person's credit in the individual account
established for that purpose in the retirement system shall be
refunded to the member or retirant.
(c) 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
member or retirant would have become eligible for unreduced
retirement benefits under that retirement system.
(d) The retirement system shall not provide hospitalization
and medical coverage insurance to the member or retirant whose
retirement
benefit is being forfeited under this act and but shall
provide hospitalization and medical coverage insurance 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.