LANSING, Mich. – Public employees who have been convicted of (or entered a nolo contendere plea in) felonies that breach public trust must forfeit specified retirement benefits under legislation signed last Wednesday by Gov. Rick Snyder.
“Protecting the integrity of retirement contributions employers make is critically important, and this bill helps ensure employer contributions are not allocated to public employees who have been convicted of crimes that break public trust,” Gov. Snyder said at the time of signing.
House Bill 4131, sponsored by state Rep. Jim Runestad, requires a public employee or retiree to relinquish accumulated employer contributions, and interest, toward a retirement benefit, if convicted of a felony arising from breaching public trust during their service. The bill amends the Public Employee Retirement Benefits Forfeiture Act, clarifying existing language by making forfeiture mandatory.
The bill defines “Felony arising out of his or her service as a public employee” as meaning one or more of the following:
—A felony resulting from the misuse of public funds.
—A felony resulting from the receipt of a bribe or other financial benefit in that individual’s capacity as a public employee.
The bill reads, “If a court orders forfeiture under this section, the court shall determine the extent to which a forfeiture under this act affects the vested status of the member or retirant under the terms of the retirement system,” and states that the court order must, if applicable, contain the provision, “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.”
HB?4171 is now Public Act 43 of 2017.
Gov. Snyder also signed:
House Bill 4058/PA?44 of 2017, sponsored by state Rep. Eric Leutheuser, amends the Neighborhood Enterprise Zone Act to remove the requirement that a local assessor must forward tax assessment information to the Michigan Enterprise Zone Authority on an annual basis.
Senate Bill 176, sponsored by state Sen. Tom Casperson, allows a tourist oriented directional sign to be placed on a rural road for the purpose of advertising a tourist attraction, even if the attraction is visible from the road. It is now PA 45 of 2017.
For more information visit www.legislature.mi.gov.
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