AR SB52

Public employees convicted or pleading guilty/nolo contendere to felonies arising from abuse of public trust, abuse of office, or fraud in their official capacity forfeit all retirement benefits and credited service

Upon conviction or plea, retirement systems must immediately stop annuity payments and refund accumulated contributions minus any annuity already received, with refunds reduced by court-ordered restitution amounts

Prosecuting attorneys must notify applicable retirement systems when public employees are charged with or indicted for qualifying felonies, triggering suspension of contribution withdrawal rights until final adjudication or charges are dismissed

Employees may request a waiver of withdrawal suspension from the retirement system's board of trustees within 30 days of notice, with the board setting hearing dates and authority to promulgate rules for the waiver process

Forfeited benefits and rights are fully restored if the employee's conviction is overturned, they are acquitted, or they receive a pardon, provided they repay refunded contributions; the law applies to new employees and to prior employees whose felonies occurred after the effective date