Pension Revocation Laws in Other States

You asked for a comparison of state laws that revoke or reduce corrupt officials’ pension or other retirement benefits.

The National Council of State Legislatures conducted an informal survey and found that 13 states have laws that revoke or reduce pension or other retirement benefits of public officials and employees who are convicted of a crime related to their employment. This report focuses on eight of these states: Florida, Georgia, Michigan, Massachusetts, New Jersey, Pennsylvania, Rhode Island, and Tennessee.

Of these eight states, all but one (New Jersey) specify a list of punishable offenses, primarily embezzlement, theft, bribery, and other felonies committed with an intent to realize a financial benefit from the use of a public position. New Jersey is unique in that it expressly conditions receipt of a pension on the rendering of honorable service and stipulates factors that the retirement board must consider when evaluating misconduct. About half of the states specify dollar thresholds, usually through the inclusion of “felonious theft” as a punishable offense. The thresholds range from $ 250 to $ 500. Five of the states mandate full pension revocation upon conviction while three allow for a partial revocation or reduction depending on the severity of the crime. Florida and Pennsylvania automatically revoke beneficiaries’ benefits but most of the others address this issue on a case-by-case basis. Finally, it appears that half of the states automatically rescind medical benefits when pension forfeiture is required while two leave medical benefits untouched and two proceed on a case-by-case basis.

Table 1 compares the major components of the eight states’ corrupt officials laws.


Table 1: (Continued)
State	Application	Punishable Offenses	Punishment	Procedure and Deciding Body	Applies to Beneficiaries?	Includes Medical Benefits?
Pennsylvania 43 P. S. §§ 22-1311 to 22-1315	Current or former public officials and public employees who are members of any retirement system funded in whole or in part by the state or any political subdivision.	State or federal crimes related to public office or public employment including, among others, theft by deception, theft by extortion, theft of services, and theft by failure to make required disposition of funds received. In instances of theft, Pennsylvania revokes benefits based on a misdemeanor of the first degree or higher.	Forfeiture of any retirement or other benefit, or payment of any kind. Excludes individual contributions less interest.	Trial and conviction in a court of record. Court orders forfeiture upon entry of a plea of guilty or no defense, or upon conviction. Court also orders restitution.	Yes	Yes
Rhode Island R. I. Gen. Laws § 11-41-31 and 36-10. 1, et seq.	Current or former state or municipal elected or appointed officials and any state or local government employee of boards, commissions, or agencies who is entitled to receive benefits.	Crimes related to public office or public employment including, among others, felonious theft, felonious embezzlement, bribery, and any felony whereby the employee realizes, or attempts to realize, a gain or advantage for themselves or another person through use of power, rights, privilege, duties, or position. Theft is considered a felony when the value of the property is $ 500 or more.	Forfeiture of all or part of any retirement or other benefit, or payment of any kind to which a public official or employee is otherwise entitled. Excludes individual contributions less interest.	Revocation or reduction upon criminal conviction or a plea or guilty or nolo contendere. If judge makes no finding, the retirement board is required to initiate a civil action in superior court.	Superior court has discretion.	Yes
Tennessee Tenn. Code Ann. § 8-35-124	Public employees and elected or appointed officials.	Any felony arising out of the employee's or official's employment or official capacity constituting malfeasance in office.	Forfeiture of retirement benefits from the consolidated retirement system, any superseded retirement system, or any other public pension. Excludes individual contributions.	Trial and conviction in court. Employing agency is responsible for notifying the retirement administrator upon conviction or a plea of guilty or nolo contendere.	Within 6 months after conviction, member may elect to have a monthly retirement allowance paid to beneficiaries following their death.	No

¹ This information is based on a conversation with an attorney at the Division of Retirement.

² Georgia law also provides a mechanism to revoke the pension of public employees who are convicted of murder, manslaughter, or drug related crimes.


February 22, 2005		2005-R-0190
PENSION REVOCATION LAWS IN OTHER STATES

By: Kristin Sullivan, Research Analyst


Table 1: Pension Revocation Laws in Other States
State	Application	Punishable Offenses	Punishment	Procedure and Deciding Body	Applies to Beneficiaries?	Includes Medical Benefits?
Florida Fla. Stat. Ann. § 112. 3173	Public officers and employees.	Specified offenses include, among others, theft from employer, felonious embezzlement, felonious bribery, any impeachable offense, and any felony whereby the employee realizes, or attempts to realize, a gain or advantage for themselves or another person through use of power, rights, privilege, duties, or position. By law, benefits can be revoked based on theft of property valued at as little as $ 100—a misdemeanor. However, Florida does not enforce this provision and only revokes benefits based on felonious theft of $ 300 or more. ¹	Constitutionally required to forfeit all rights to any publicly funded retirement system, except for individual contributions, if convicted prior to retirement or if employment is terminated by reason of admitted commission, aid, or abetment of specified crimes.	First, trial and conviction, or a plea of guilty or nolo contendere, in court of competent jurisdiction. Or, conviction by the Senate of an impeachable offense. Second, hearing and revocation by board that pays benefits.	Yes	Yes
Georgia Ga. Code Ann. §§ 47-1-20 to 47-1-22	All state and local elected and appointed officials and state and local employees hired or rehired after on or after July 1, 1985.	Public employment related crimes include, among others, felonious theft in breach of duties, felonious abuse of office, making false statements or concealing facts, conspiracy to defraud, stealing, altering, or concealing public records, and selling offices or dividing fees. ² Theft in breach of duties is considered a felony when the value of the property exceeds $ 500.	Forfeiture of all rights and benefits under any public retirement system in which the employee is a member, effective on the date of final conviction. Individual contributions are reimbursed without interest within 60 days of final conviction.	Judgment of conviction for the commission of a crime, which is entered upon a verdict or plea of guilty.	Law does not address beneficiaries.	Yes


Table 1: (Continued)
State	Application	Punishable Offenses	Punishment	Procedure and Deciding Body	Applies to Beneficiaries?	Includes Medical Benefits?
Massachusetts Mass. Gen. Laws Ch. 32 § 15	Members of the state and local public sector retirement systems.	Punishable offenses include, among others, misappropriation of funds or property, corrupt gifts or offers to influence official acts, extortion pertaining to police or licensing duties, and criminal offenses that violate the laws applicable to one’s position. Based on a conversation with an attorney at the Pension Reserves Investment Management Board, misappropriation of funds or property is larceny and is punishable under this law when the value of the property exceeds $ 250.	In some cases, forfeiture of all rights to a retirement allowance and to a return of accumulated total deductions. In other cases, forfeiture until full restitution is made for the misappropriated amount and for the costs of any investigation.	Hearing and conviction by the board that administers the benefit, or trial and conviction in a court of law.	Depends on the severity of the crime. When a member forfeits all benefits, so do dependents. When a member makes restitution, benefits can be restored to dependents.	In some cases.
Michigan Mich. Comp. Laws §§ 38. 2701 to 38. 2705	Members, vested former members, or deferred members of a state or local public retirement system.	Felonies arising out of service as a public employee, including misuse of public funds and receiving a bribe or other financial benefit.	Forfeiture of vested retirement benefits less individual contributions. Only applies to retirement system(s) the person was a member of when he committed the felony and only to the retirement system established by the entity affected by the felony.	Court orders forfeiture upon trial and conviction or plea of nolo contendere. Retirement system complies with order.	No	No
New Jersey N. J. Stat. Ann. § 43: 1-3	Public officers and public employees.	Any misconduct occurring during member’s public service that renders the service dishonorable. The law does not specify which crimes are punishable. Instead, the board of trustees that administers the benefit evaluates a member’s misconduct to determine if it is dishonorable. Among other things, the board must consider length of service, nature of the misconduct or crime, motives and personal gain, and availability of other penal sanctions.	Forfeiture of all or part of the pension or retirement benefit.	Board of trustees that administers the benefit conducts a hearing and is responsible for revocation upon conviction in court of any criminal offense.	In cases where member forfeits all benefits, so do dependents. In cases of partial forfeiture, it is possible for dependents to receive benefits.	Decided on a case-by-case basis.