HOUSE BILL NO. 5338
January 16, 2020, Introduced by Rep. Hoitenga
and referred to the Committee on Judiciary.
A bill to amend 1994 PA 350, entitled
"Public employee retirement benefits forfeiture act,"
by amending sections 2 and 3 (MCL 38.2702 and 38.2703), as amended by 2017 PA 43.
the people of the state of michigan enact:
(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
individual's capacity as a public employee.
(iii) A felony violation of chapter LXXVI of
the Michigan penal code, 1931 PA 328, MCL 750.520a to 750.520o, if the
individual is a public school employee and the victim is either of the
following:
(A) A pupil of a reporting unit.
(B) Less than 18 years of age.
(b) "Member" means a member, vested former member,
deferred member, or participant of a retirement system.
(c) "Public school employee" means that term as
defined in section 6 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1306.
(d) "Reporting unit" means that term as defined in
section 7 of the public school employees retirement act of 1979, 1980 PA 300,
MCL 38.1307.
(e) (c) "Retirant" means an individual who
has retired with a retirement benefit payable from a retirement system.
(f) (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.
(g) (e) "Retirement system" means a public
employee retirement system established by this state or a political subdivision
of this state.
(h)
"Victim" means that term as defined in section 520a of the Michigan
penal code, 1931 PA 328, MCL 750.520a.
Sec. 3. (1) A
member or retirant who, before the effective
date of the amendatory act that added section 4a, September 5, 2017, is convicted of or
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 individual's credit in the retirement
system forfeited as provided in this act.
(2)
A member or retirant who, on or after the effective date of the
amendatory act that added section 4a, September 4, 2017, is convicted of or 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 must 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 individual's credit in the retirement system
forfeited as provided in this act.
(3)
This act applies only to the
retirement system of which the 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. For purposes of
this section, for an individual described in section 2(a)(iii), the Michigan public school
employees' retirement system created under section 21 of the public school
employees retirement act of 1979, 1980 PA 300, MCL 38.1321, is affected by the
felony regardless of whether the victim was a pupil of the reporting unit where
the individual was employed.