MI HB5990

Expands the definition of "felony arising out of service as a public employee" to include only misuse of public funds and receipt of bribes or financial benefits in official capacity.

Changes court authority from discretionary ("may") to mandatory ("shall") to order forfeiture when a member or retirant is convicted of or pleads nolo contendere to a qualifying felony.

Requires forfeiture of retirement benefits accrued after the date of the first criminal act, employer contributions to defined contribution plans (including earnings), but mandates refund of the employee's own accumulated contributions.

Preserves beneficiary rights by requiring the retirement system to pay an actuarially equivalent monthly allowance to beneficiaries at the age the convicted employee would have become eligible for unreduced benefits.

Maintains hospitalization and medical coverage insurance for the convicted member or retirant and their beneficiaries under the same terms as other retirants in the system.