BILL ANALYSIS �
AB 1681
Page 1
Date of Hearing: April 26, 2012
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
AB 1681 (Smyth) - As Amended: March 29, 2012
SUBJECT : Public employees' retirement: felony forfeiture.
SUMMARY : Requires a school employee who is convicted of a
felony arising out of his or her official duties to forfeit
retirement benefits, as specified. Specifically, this bill :
1)Requires that an employee of a school district, county office
of education, or charter school who is convicted of a state or
federal felony for conduct arising out of, or in the
performance of, his or her official duties to forfeit
retirement benefits attributable to service from the earliest
date of commission of the felony to the date of conviction.
2)Requires any contributions to the public retirement system
made by the employee on or after the earliest date of
commission of the felony to be returned, without interest, to
the employee unless otherwise ordered by the court or
determined by the pension administrator.
3)Requires both the employer and the employee to notify the
public retirement system within 60 days of the conviction by
the trial court, as specified.
4)Authorizes the public retirement system to assess an employer
a reasonable amount to cover the cost of audit, adjustment, or
correction if it is determined that the employer failed to
notify the public retirement system within 60 days of the
felony conviction.
EXISTING LAW :
1)Requires a public officer who takes public office or is
re-elected after January 1, 2006, and is convicted of a felony
involving a bribe, embezzlement, extortion or theft of public
money, perjury, or conspiracy to commit any of these crimes,
to forfeit all rights and benefits under any public retirement
system earned during the period in which he or she was in
elective office, unless the governing body of the public
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officer's employer authorize the benefits.
2)Provides that any employee contributions made by the elected
public officer during his or her term of office shall be
returned without interest.
3)Requires the public officer's employer to notify the
retirement system of the officer's conviction, as specified.
Applies to any person appointed to service for the period of
an elected public officers' unexpired term of office.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "Current law requires
elected officials to forfeit their pension should they be
convicted of corruption type charges. However, current law does
not require forfeiture of retirement benefits from public school
employees who commit violent, serious or Megan's Law felonies
while doing their job. The unspeakable acts perpetrated against
children in LAUSD demonstrate the need to expand this forfeiture
requirement to public school teachers, in addition to elected
officials. When a teacher is hired, he or she signs a contract
agreeing to uphold the standards required by their position. A
violent, serious, or Megan's law felony conviction, in
connection to one's role and job duties as teacher, expressly
violates the standards set forth by their employment contract.
As such, the public should no longer be held financially liable
for the retirement benefits awarded by the violated contract.
"In addition, the public should not be held dually responsible
for the incarceration and the retirement benefits of the teacher
convicted of a serious, violent, or Megan's Law felony. During
incarceration, healthcare and basic needs are provided at the
expense of Californians, and it is unjust that the public is
simultaneously required to pay the public retirement benefits.
"This bill removes the state's liability for retirement benefits
awarded from the point of commission of the first felony offense
for which the public school employee is convicted. The employee
will retain the funds they contributed to their public
retirement account."
In 2011, the Legislature established the Conference Committee on
Public Employee Pensions under the provisions of AB 340
(Furutani) and SB 827 (Simitian). The Conference Committee is
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tasked with crafting "?responsible, comprehensive legislation to
reform state and local pension systems in a manner that reflects
both the legitimate needs of public employees and the fiscal
circumstances of state and local governments." Since that time,
the Conference Committee has met five times and anticipates
releasing its report in the next several months. The
Legislature will then have the opportunity to vote on the
Conference Committee report in both houses.
The subject matter of this bill is under the purview of the
Conference Committee. It is, therefore, the recommendation of
this Committee that this bill be referred to interim study.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
California School Employees Association
Professional Engineers in California Governement
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957