Senate Bill 535 Summary

• Establishes pension forfeiture requirements for members of four state retirement systems (Teachers' and State Employees', Local Governmental Employees', Consolidated Judicial, and Legislative) convicted of felonies related to their office or employment, with only return of member contributions plus interest allowed.

• Defines "conduct directly related to the office or employment" as felonies involving offenses in G.S. 115C-270.35(b) committed in public schools, offenses requiring license/certification revocation, or conduct determined by the Board of Trustees to be directly related to employment or office.

• Requires employers to recertify compensation accuracy within 120 days of embezzlement convictions, with a possible 60-day extension; if not completed within 180 days, the member's right to distributions is reinstated based on previously reported compensation.

• Mandates the Retirement Systems Division provide annual public reports to the Board of Trustees listing members subject to felony forfeiture statutes, including name, last employer, retirement system, position, felony conviction, and conviction year.

• Makes information about whether a member has had creditable service forfeited a public record in retirement member files and requires removal from office orders to specify dates of conduct occurred.

• Effective date: January 1, 2024.