MS HB982

Members of the Public Employees' Retirement System (PERS) or Supplemental Legislative Retirement Plan (SLRP) convicted of felonies involving unlawful taking, obtaining, or misappropriating public funds through abuse of office will have retirement benefits suspended until full restitution is made, effective for felonies committed on or after July 1, 2026.

Benefit suspension requires a court hearing in a separate civil proceeding, with notice provided to the member and named beneficiaries; the court must determine all conditions are met before issuing a suspension order.

Suspension of benefits does not take effect until all appeals of the conviction have been concluded or the appeal period has expired, as certified by the Attorney General.

Members forfeit all retirement benefits they would have received during the suspension period; ambiguities about whether suspension applies must be resolved in favor of the member.

If a member belongs to multiple retirement systems administered by PERS, suspension applies only to the system covering the employment during which the felony was committed.