Legislators Announce Legislation Limiting State Pensions for Public Officials Guilty of Crimes Related to Public Office

July 13, 2005

NASHVILLE—Representatives Craig Fitzhugh (D-Ripley) and Russell Johnson (R-Loudon) and Senators Randy McNally (R-Oak Ridge) and Mark Norris (R-Collierville) announced that they will file legislation that will enable the state to address the pensions of public officials that are guilty of crimes related to public office. The legislation is modeled after a Pennsylvania statute.

An Attorney General’s Opinion has been requested regarding whether pensions can be limited or withheld under our current statute. The legislators stated that this bill will be used if the Attorney General opines that our current statutes do not allow pensions to be affected when crimes have been committed.

“Public trust is the foundation of our democracy, and when government officials violate that trust, they need to be aware that there will be serious and long-lasting consequences,” Senator McNally said.

"Elected officials must either uphold the oath of office or pay the price for violating it. No one who violates their solemn oath should benefit from it in any way," said Senator Norris.

Representative Johnson stated, “There are several committees studying ethics reform over the summer, and we already have many laws on the books regarding abuse of public office. I think it is important to strengthen the penalty for breaking these laws.”

The legislators are also working on drafting other bills that will remove access to the state’s health insurance plan for officials guilty of crimes related to public office as well as a bill to require disclosure of actions that are not illegal but are ethically questionable.

The General Assembly is scheduled to reconvene on January 10, if they are not called into an Extraordinary Session before then. The legislators plan to move the legislation at the first available time.

# # #


NOTE TO EDITORS/MANAGERS: Information about the Pennsylvania law is attached or you can get more details from their website – SERS: Introduction to Pension Forfeiture - Act 140 .

Pennsylvania
State Employees' Retirement System
Plan Summary
Introduction to Pension Forfeiture - Act 140

A public office is indeed a public trust, and Pennsylvania's Public Employee Pension Forfeiture Act 1978-140 (Act 140) has been in place for over 20 years to penalize those who violate that trust. Committing an Act 140 crime while a state employee can result in more than the loss of a job and a fine or prison term. It can cost the SERS member his or her pension.
Act 140 requires forfeiture of all pension and retirement benefits by any SERS member who commits certain crimes that breach the member's duty of faithful and honest public service. Also forfeited are any benefits for the member's beneficiaries and survivor annuitants.

The only benefits Act 140 allows a SERS member to receive are his or her contributions paid into the pension fund, without interest. Even these contributions may be lost, however, because Act 140 requires they be used to pay fines and restitution associated with the criminal conviction.

Act 140 is triggered if a SERS member is convicted of or pleads guilty or no defense to any listed crime committed through the member's public office or position or when public employment puts the member in a position to commit the crime.

Pennsylvania crimes covered by Act 140 are listed on this page. All federal crimes substantially the same as these state crimes also are covered by Act 140.

Act 140 applies to all members of SERS, even those who became members before July 8, 1978 if they have been reelected, re-appointed, promoted or changed job classifications since then.

Enforcement of Act 140 is mandatory. Pennsylvania courts have held that neither SERS nor an employing agency has any discretion in its application. Nor does it matter if the crime is relatively minor compared to the value of pension benefits. If Act 140 is applicable, it must be applied.

Committing an Act 140 crime can result in loss of a SERS member's pension

Act 1978-140

• Theft by deception or extortion (if a first degree misdemeanor or higher)
• Theft of services (if a first degree misdemeanor or higher)
• Theft by failure to make required disposition of funds received (if a first degree misdemeanor or higher)
• Forgery
• Tampering with records or identification
• Misapplication of entrusted property and property of government or financial institutions (if reaching the level of a second degree misdemeanor)
• Bribery, threats and other improper influence in official and political matters
• Perjury
• False swearing
• Unsworn falsification to authorities
• False reports to law enforcement authorities
• Tampering with, bribing or retaliating against witnesses and informants
• Tampering with or fabricating physical evidence
• Tampering with public records or information
• Obstructing administration of law or other governmental function
• Official oppression
• Speculating or wagering on official action or information
• Violations of the Tax Reform Code of 1971

# # #