Relates to the forfeiture of pension rights or retirement benefits upon conviction of certain crimes related to public employment

Summary of specific provisions

Section 1: This bill will amend the retirement and social security law by adding a new article 3-B named the Pension Forfeiture For Public Misconduct Act.

Section 156 of Article 3-B: Short title of legislation, the PENSION FORFEITURE FOR PUBLIC MISCONDUCT ACT.

Section 157 of Article 3-B: Proper definitions of all pertinent terms referenced in the legislation.

Section 158 of Article 3-B:

1) stipulates any public employee convicted of a crime covered in the aforementioned sections will permit an action to be brought forth by the District Attorney or the Attorney General of New York State, depending on who brought forth the original, underlying charge. The office with jurisdiction may seek to impose a complete or partial forfeiture of entitled benefits a retired member of the state workforce will be entitled to. Covered offenses include a material violation that; is a violation of a member's or retired member's duties as a public servant, is committed in the course of one's public employment, involved public resources or personnel, misrepresented official powers or responsibilities, even if committed outside the scope of employment involved the conveyance of governmental authority,

2) Outlines procedures for covered offenses that occur out of state.

3) Mandates Attorney General or District Attorney give pre-notice to the chief administrator of the defendant's retirement system.

4) No forfeiture action may take place until required notice is given, and outlines some of the mitigating factors the prosecutor may consider when determining what action, if any, is appropriate.

5) The prosecutor may issue a temporary restraining order or a preliminary injunction prohibiting the defendant from receiving any rights or benefits from their respective retirement system.

6) Defendants have a right to a hearing.

7) Establishes the burden of proof for the prosecution.

8) At any time during a forfeiture action the court retains the power to dismiss the action if warranted.

9) Upon a finding of guilt the court shall order the appropriate retirement system for the forfeiture, partial forfeiture, recoupment, or partial recoupment of the defendant's rights and benefits of as a

member of a state employee retirement system. 10) Upon final determination that reverses or vacates a conviction or

convictions the member or retired member can have rights and benefits retroactively restored.

11) The civil practice law and rules of New York State govern the procedure in actions taking up under this article.

Section 159 of Article 3-B: Miscellaneous.

Section 2: Effective Date.

Justification

The finances of New York State have long been under the shadow of what has called the "pension bomb", or the obligation of New York's taxpayers to continually finance an increasingly expensive and convoluted state retirement system. In December of 2009 Governor Paterson unveiled and the legislature passed the largest attempt at meaningful public pension reform in generations. But many issues within the state retirement apparatus remain. One of the most egregious being the obligation of taxpayers to continue to pay for the benefits and retirement benefits for state employees who have committed serious crimes in the performance of their employment as state officials and/or employees.

It is unconscionable to expect hardworking families to pay for the employment and retirement benefits of individuals while they serve prison terms. This legislation will permit local district attorney's or the state Attorney General to commence an action stripping convicted felons from continuing to receive state employee and retirement benefits.

While the vast majority of state employees are hardworking, honest citizens, and the amount of tax dollars saved in preventing continued benefit payouts is minimal, this legislation will add a degree of equity and justice for the taxpayers who support the various state employee retirement systems. Further, the threat of forfeiting one's benefits and future retirement benefits will serve as an additional deterrent to committing an initial crime.

Prior legislative history

This is a new bill.

Fiscal implications

None

Effective date

This Act shall take effect on the thirtieth day after it shall have become law.