THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BOBACK, TOOHIL, GABLER, LAWRENCE, SCAVELLO, WAGNER, WATSON, CUTLER, PEIFER, MAJOR, GOODMAN, MILNE, HARRIS, SWANGER, TRUITT AND TALLMAN, MAY 23, 2011

REFERRED TO COMMITTEE ON JUDICIARY, MAY 23, 2011  

AN ACT

Amending the act of July 8, 1978 (P.L.752, No.140), entitled "An

act providing for the forfeiture of the pensions of certain

public employees and authorizing the State or political

subdivision to garnish the pension benefits of certain public

officers and employees upon conviction of certain criminal

activity related to their office or position of employment,"

further providing for disqualification and forfeiture of

benefits and for restitution.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3 of the act of July 8, 1978 (P.L.752,

No.140), known as the Public Employee Pension Forfeiture Act, is

amended to read:

Section 3.  Disqualification and forfeiture of benefits.

(a)  Notwithstanding any other provision of law, no public

official or public employee nor any beneficiary designated by

such public official or public employee shall be entitled to

receive any retirement or other benefit or payment of any kind

except a return of the contribution paid into any pension fund

without interest, if such public official or public employee is

convicted or pleads guilty or no [defense] contest to any crime

related to public office or public employment.

(b)  [The benefits shall be forfeited upon entry of a plea of

guilty or no defense or upon initial conviction and no payment

or partial payment shall be made during the pendency of an

appeal. If] The benefits shall be immediately forfeited upon the

public official's or public employee's entry of a plea of guilty

or no contest or upon initial entry of a jury verdict or

judicial order of guilty, with respect to any crimes related to

public office or public employment. The forfeiture shall not be

stayed or affected by the withdrawal of, or the court's refusal

to accept, the plea or by the pendency of an appeal or

collateral attack on the plea, verdict or order, regardless of

whether a court has entered or stayed the sentence pending the

appeal or collateral attack. If a plea, verdict or order is

vacated and a verdict of not guilty is rendered or the

indictment or criminal information finally dismissed, then the

public official or public employee shall be reinstated as a

member of the pension fund or system and shall be entitled to

all benefits including those accruing during the period of

forfeiture if any. Such [conviction or] plea, verdict or order 

shall be deemed to be a breach of a public officer's or public

employee's contract with his employer.

(c)  Each time a public officer or public employee is

elected, appointed, promoted, or otherwise changes a job

classification, there is a termination and renewal of the

contract for purposes of this act.

(d)  The appropriate retirement board may retain a member's

contributions and interest thereon for the purpose of paying any

fine imposed upon the member of the fund, or for the repayment

of any funds misappropriated by such member from the

Commonwealth or any political subdivision.

(e)  Notwithstanding any other provision of this act, the

State Employees' Retirement Board shall not disburse any funds

to any person who has forfeited their right to benefits until

the Auditor General and the Attorney General have determined and

certified that there has been no loss to the Commonwealth as a

result of the conduct that resulted in forfeiture of benefits.

If there is a loss to the Commonwealth, the board shall pay the

amount of the loss to the State Treasurer from the member's

contributions and the interest thereon.

Section 2.  Section 4 of the act, repealed in part October 5,

1980 (P.L.693, No.142), is amended to read:

Section 4.  Restitution for monetary loss.

(a)  [Whenever] For any public official or employee who is a

member of any pension system funded by public moneys [is

convicted or pleads guilty or pleads no defense], whenever the

public official or employee enters a plea of guilty or no

contest, in any court of record, to any crime related to a

public office or public employment or whenever there is initial

entry of a jury verdict or judicial order of guilty against the

public official or employee, in any court of record, to any

crime related to a public office or public employment, the court

shall order the defendant to make complete and full restitution

to the Commonwealth or political subdivision of any monetary

loss incurred as a result of the criminal offense.

(b)  If the court fails to order such restitution the

Commonwealth, through the Attorney General, or a political

subdivision shall petition the court pronouncing sentence for an

order establishing the amount of restitution due it. If the

court does not have authority to order restitution, the

Commonwealth or the political subdivision shall bring an

original action for restitution.

(c)  Notwithstanding any law or provision of law exempting

the pension account or benefits of any public official or public

employee from garnishment or attachment, whenever the court

shall order restitution or establish the amount of restitution

due after petition, all sums then credited to the defendant's

account or payable to the defendant including the contributions

shall be available to satisfy such restitution order.

(d)  The retirement board, administrator of the pension fund

or employer of the defendant, upon being served with a copy of

the court's order, shall pay over all such pension benefits,

contributions or other benefits to the extent necessary to

satisfy the order of restitution. 

Section 3.  The amendment of sections 3 and 4 and of the act

shall apply to crimes related to public office or public

employment committed on and after the effective date of this

section.

Section 4.  This act shall take effect in 60 days.