SF 2215 (LSB 5696XS (3) 90)

SENATE FILE 2215

BY  ZAUN

A BILL FOR

An Act relating to public retirement systems by allowing for the forfeiture of certain portions of the pension of a public employee who commits felony theft from a public employer.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  97E.1  Revocation of rights to pension.
   1.  As used in this section:
   a.  “Bona fide retirement” means the retirement of a vested member of the system who is eligible to receive benefits under the system.
   b.  “Conviction” means a plea of guilty or a verdict of guilty.
   c.  “Public employee” means any individual employed by a public employer and who is entitled to a pension under chapter 97A, 97B, 411, or 602. “Public employee” includes a public official as defined in section 68B.2.
   d.  “Public employer” means the state, its boards, commissions, agencies, and departments, and its political subdivisions including school districts and other special purpose districts.
   e.  “System” means the Iowa department of public safety peace officers’ retirement, accident, and disability system under chapter 97A; the Iowa public employees’ retirement system under chapter 97B; the municipal fire and police retirement system under chapter 411; and the judicial retirement system under chapter 602.
   f.  “Theft” means an offense classified as a felony under section 714.2.
   2.  In addition to any other penalties provided by law, upon the conviction of a public employee for theft from a public employer, the public employee shall lose all rights in and to the public employee’s pension under a system prior to a bona fide retirement and the pension shall be revoked by the system.
   3.  If a public employee is convicted of theft from a public employer, the clerk of the district court shall notify the applicable system that a public employee has been so convicted. Any accumulated contributions made by the public employee to the system that have not already been returned to the public employee shall be returned to the public employee. Any benefits received by the public employee in excess of the public employee’s contributions shall be returned to the system.
   4.  The portion of the revoked pension that is not attributable to contributions made to the system by the public employee shall be considered property subject to forfeiture under chapter 809A, and the public employee shall not be entitled to such portion of the pension as a matter of law, and the system shall proceed under the procedures of chapter 809A to seize such portion of the pension.
   5.  This section shall not be construed in a manner that impairs the rights of any individual under a marital property, spousal support, or child support order. In addition, this section shall not be construed to impair the statutory rights of a governmental entity, including but not limited to the right of a governmental entity to collect an amount from the public employee for deposit in the victim compensation fund established in chapter 915.
    Sec. 2.  Section 602.8102, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.  Notify the applicable system as defined in section 97E.1 of a felony theft conviction by a public employee from a public employer as required in section 97E.1, subsection 3.
    Sec. 3.  Section 809A.4, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  The portion of a revoked pension not attributable to the contributions of a public employee as described in section 97E.1.
    Sec. 4.  Section 901.5, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  15.  If the defendant is a public employee convicted of felony theft from a public employer as described in section 97E.1, the court shall inform the defendant that portions of the pension of the public employee are subject to revocation pursuant to section 97E.1 and forfeiture under chapter 809A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to public retirement systems by allowing for the forfeiture of certain portions of the pension of a public employee who commits felony theft from a public employer.
   The bill defines “public employee” to mean an individual employed by a public employer and who is entitled to a pension under Code chapter 97A (Iowa department of public safety peace officers’ retirement, accident, and disability system), 97B (Iowa public employees’ retirement system), 411 (municipal fire and police retirement system), or 602 (judicial retirement system). “Public employee” also includes a public official as defined in Code section 68B.2.
   In addition to any other penalties provided by law, the bill provides that upon the conviction of a public employee for theft from a public employer for which the penalty is a felony, the public employee shall lose all rights in the public employee’s pension under a public retirement system prior to a bona fide retirement and the pension shall be revoked by the system.
   If convicted, the clerk of the district court is required to notify the applicable retirement system. Any accumulated contributions made by the public employee to the system shall be returned to the public employee. Any benefits received by the public employee in excess of the public employee’s contributions shall be returned to the system.
   Under the bill, the portion of the revoked pension that is not attributable to contributions made to the system by the public employee shall be considered property subject to forfeiture under Code chapter 809A, and the system shall proceed under the procedures of Code chapter 809A to seize such portion of the pension.
   The bill shall not be construed in a manner that impairs the rights of any individual under a marital property, spousal support, or child support order. In addition, this section shall not be construed to impair the statutory rights of a governmental entity to collect an amount from the public employee for deposit in the victim compensation fund established in Code chapter 915.