HB 567 Summary

• Creates Section 25-11-147 to suspend Public Employees' Retirement System (PERS) benefits for members convicted of felonies involving unlawful taking, obtaining, or misappropriation of public funds committed on or after July 1, 2024.

• Suspends retirement benefits only after all criminal appeals are concluded or the appeal period expires, and benefits remain suspended until the member makes full restitution as determined by the Attorney General.

• Creates Section 25-11-321 with identical suspension provisions for members of the Supplemental Legislative Retirement Plan (SLRP) convicted of similar felonies involving public funds.

• Allows courts to conduct civil hearings to determine whether suspension conditions are met, with notice provided to the member and named beneficiaries; suspension orders apply only to the retirement system covering the member's service when the felony was committed.

• Provides that the retirement system may conclusively rely on court suspension orders and Attorney General notices, and is not liable for good-faith benefit payment mistakes; ambiguities about suspension eligibility are resolved in favor of the member.