MS HB490

Creates new law requiring courts to issue withholding orders from retirement benefits for Public Employees' Retirement System members and Supplemental Legislative Retirement Plan members convicted of felonies involving unlawful taking, obtaining, or misappropriation of public funds committed on or after July 1, 2025.

Directs retirement systems to withhold monthly amounts from member benefits so that full restitution is repaid within three years, with withheld funds distributed by the Attorney General to the affected government body.

Prohibits benefit withholding until all appeals of conviction are finally concluded or appeal deadlines expire; requires Attorney General notification to the system before withholding begins.

Applies to active members, retired members, and members no longer in service who were elected officials; allows withholding only from the retirement system covering the elected office where the felony occurred.

Protects retirement systems from liability for good faith reliance on court withholding orders and Attorney General notices; clarifies that withholding is not a garnishment and any ambiguities regarding withholding must be resolved in favor of the member.