The California Public Employees’ Pension Reform Act of 2013 (PEPRA) defines how public retirement benefits are calculated, funded, and administered for state and local government employees who entered their respective retirement systems after January 1, 2013. It governs employee and employer contributions, benefit formulas, and other rules for participation in public retirement systems.
PEPRA requires any public employee convicted of a felony arising from the performance of their official duties, or from obtaining salary, disability retirement, service retirement, or other benefits, to forfeit all accrued rights and benefits in any public retirement system. The forfeiture applies from the date the felony conduct began to the date of conviction, and the employee may not accrue additional benefits in that system. An elected public officer who is convicted, during or after holding office, of a felony involving bribery, embezzlement, extortion, theft of public money, perjury, or related conspiracy must also forfeit all rights, benefits, and membership in any public retirement system effective on the date of final conviction.
AB 1067 requires that, if a public employer’s investigation of an employee for misconduct arising from their official duties, or in connection with obtaining salary, disability retirement, service retirement, or other benefits, indicates the employee may have committed a crime, the public employer to continue investigating the employee, even if the employee retires while under investigation.
AB 1067 also requires that, if a public employer’s investigation of an employee for misconduct arising from their official duties, or in connection with obtaining salary, disability retirement, service retirement, or other benefits, indicates the employee may have committed a crime, the public employer refer the matter to the appropriate law enforcement agency. Thereafter, the public employer may close the investigation.
If a court later convicts the employee of a felony for the conduct under investigation, AB1067 requires that the employee forfeit all accrued rights and benefits in any public retirement system, as provided under existing law under PEPRA.
(AB 1067 adds Section 7522.76 to the Government Code.)