HB 489 Summary

• Creates new suspension procedures for retirement benefits of Public Employees' Retirement System (PERS) members and Supplemental Legislative Retirement Plan (SLRP) members who are convicted of felonies involving unlawful taking, obtaining, or misappropriation of public funds committed on or after July 1, 2025.

• Requires courts to conduct civil hearings and issue suspension orders if an elected official or legislator is convicted or pleads guilty/nolo contendere to such felonies; suspension takes effect after all appeals are exhausted or the appeal deadline passes.

• Suspends retirement benefits until the member makes full restitution of unlawfully obtained public funds as determined by the Attorney General; members forfeit all benefits during the suspension period.

• Applies suspension only to the specific retirement system covering the member's service in the office where the felony occurred if the member belongs to multiple retirement systems administered by the PERS Board of Trustees.

• Clarifies that benefit suspensions are not considered administrative determinations subject to hearing appeals, and exempts suspensions from protections against attachment or assignment of retirement benefits.