Senate Study Bill 3051 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WORKFORCE BILL BY CHAIRPERSON DICKEY) A BILL FOR An Act relating to public retirement systems by allowing for 1 the forfeiture of certain portions of the pension of a 2 public employee who commits a felony. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5202XC (2) 91 sc/ns

S.F. _____ Section 1. NEW SECTION . 97D.6 Revocation of rights to 1 pension. 2 1. As used in this section: 3 a. “Bona fide retirement” means the retirement of a vested 4 member of the system who is eligible to receive benefits under 5 the system. 6 b. “Conviction” means a plea of guilty or no contest or a 7 verdict of guilty. 8 c. “Public employee” means any individual who is employed by 9 a public employer and is entitled to a pension under chapter 10 97A, 97B, or 602. “Public employee” includes a public official 11 as defined in section 68B.2. 12 d. “Public employer” means the state, its boards, 13 commissions, agencies, and departments, and its political 14 subdivisions including school districts and other special 15 purpose districts. 16 e. “System” means the Iowa department of public safety peace 17 officers’ retirement, accident, and disability system under 18 chapter 97A; the Iowa public employees’ retirement system under 19 chapter 97B; and the judicial retirement system under chapter 20 602. 21 2. In addition to any other penalties provided by law, upon 22 the conviction of a public employee for a felony, the public 23 employee shall lose all rights in and to the public employee’s 24 pension under a system prior to a bona fide retirement and the 25 pension shall be revoked by the system. 26 3. If a public employee is convicted of a felony, the clerk 27 of the district court shall notify the applicable system that 28 a public employee has been so convicted. Any accumulated 29 contributions made by the public employee to the system that 30 have not already been returned to the public employee shall 31 be returned to the public employee. Any benefits received 32 by the public employee in excess of the public employee’s 33 contributions shall be returned to the system. 34 4. The portion of the revoked pension that is not 35 -1- LSB 5202XC (2) 91 sc/ns 1/ 3

S.F. _____ attributable to contributions made to the system by the public 1 employee shall be considered property subject to forfeiture 2 under chapter 809A, and the public employee shall not be 3 entitled to such portion of the pension as a matter of law, and 4 the system shall proceed under the procedures of chapter 809A 5 to seize such portion of the pension. 6 5. This section shall not be construed in a manner that 7 impairs the rights of any individual under a marital property, 8 spousal support, or child support order. In addition, this 9 section shall not be construed to impair the statutory rights 10 of a governmental entity, including but not limited to the 11 right of a governmental entity to collect an amount from the 12 public employee for deposit in the victim compensation fund 13 established in chapter 915. 14 Sec. 2. Section 602.8102, Code 2026, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 16. Notify the applicable system as defined 17 in section 97D.6 of a felony conviction by a public employee as 18 required in section 97D.6, subsection 3. 19 Sec. 3. Section 809A.4, Code 2026, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 6A. The portion of a revoked pension not 22 attributable to the contributions of a public employee as 23 described in section 97D.6. 24 Sec. 4. Section 901.5, Code 2026, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 15. If the defendant is a public employee 27 convicted of a felony as described in section 97D.6, the court 28 shall inform the defendant that portions of the pension of the 29 public employee are subject to revocation pursuant to section 30 97D.6 and forfeiture under chapter 809A. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to public retirement systems by allowing 35 -2- LSB 5202XC (2) 91 sc/ns 2/ 3

S.F. _____ for the forfeiture of certain portions of the pension of a 1 public employee who commits a felony. 2 The bill defines “public employee” to mean an individual who 3 is employed by a public employer and is entitled to a pension 4 under Code chapter 97A (Iowa department of public safety peace 5 officers’ retirement, accident, and disability system), 97B 6 (Iowa public employees’ retirement system), or 602 (judicial 7 retirement system). “Public employee” also includes a public 8 official as defined in Code section 68B.2. 9 In addition to any other penalties provided by law, the bill 10 provides that upon the conviction of a public employee for a 11 felony, the public employee shall lose all rights in the public 12 employee’s pension under a public retirement system prior to a 13 bona fide retirement and the pension shall be revoked by the 14 system. 15 If convicted, the clerk of the district court is required 16 to notify the applicable retirement system. Any accumulated 17 contributions made by the public employee to the system shall 18 be returned to the public employee. Any benefits received 19 by the public employee in excess of the public employee’s 20 contributions shall be returned to the system. 21 Under the bill, the portion of the revoked pension that 22 is not attributable to contributions made to the system by 23 the public employee shall be considered property subject to 24 forfeiture under Code chapter 809A, and the system shall 25 proceed under the procedures of Code chapter 809A to seize such 26 portion of the pension. 27 The bill shall not be construed in a manner that impairs 28 the rights of any individual under a marital property, 29 spousal support, or child support order. In addition, the 30 bill shall not be construed to impair the statutory rights 31 of a governmental entity to collect an amount from the 32 public employee for deposit in the victim compensation fund 33 established in Code chapter 915. 34 -3- LSB 5202XC (2) 91 sc/ns 3/ 3