AN ACT TO CREATE NEW SECTIONS 25-11-149, 25-11-321 AND 25-13-37, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE RECEIPT OF RETIREMENT BENEFITS FROM THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM, THE SUPPLEMENTAL LEGISLATIVE RETIREMENT SYSTEM AND THE MISSISSIPPI HIGHWAY SAFETY PATROL RETIREMENT SYSTEM IS CONDITIONED ON THE MEMBER'S HONEST AND FAITHFUL PERFORMANCE OF HIS OR HER PUBLIC DUTIES FOR THE STATE; TO PROVIDE THAT A MEMBER'S CONVICTION OF OR PLEA OF GUILTY OR NOLO CONTENDERE TO A FELONY INVOLVING PUBLIC FUNDS OF $50,000.00 OR MORE IS CONSIDERED TO BE A BREACH OF THE PUBLIC TRUST AND A BREACH OF THE MEMBER'S CONTRACT WITH THE STATE; TO PROVIDE THAT IF A MEMBER OF THE SYSTEM OR PLAN IS CONVICTED OF OR ENTERS A PLEA OF GUILTY OR NOLO CONTENDERE IN ANY COURT TO A FELONY INVOLVING PUBLIC FUNDS OF $50,000.00 OR MORE THAT IS COMMITTED ON OR AFTER JULY 1, 2026, THE COURT SHALL CONDUCT A HEARING IN A SEPARATE CIVIL PROCEEDING TO DETERMINE IF ALL OF THE CONDITIONS HAVE BEEN MET; TO PROVIDE THAT IF ALL OF THE CONDITIONS HAVE BEEN MET, THE COURT SHALL ISSUE AN ORDER THAT THE MEMBER BE TERMINATED FROM MEMBERSHIP IN THE SYSTEM OR PLAN AND FORFEIT HIS OR HER RETIREMENT BENEFITS FROM THE SYSTEM OR PLAN; TO PROVIDE THAT A MEMBER WHO IS CONVICTED OF SUCH A CRIME SHALL NOT BE TERMINATED FROM MEMBERSHIP IN THE SYSTEM OR PLAN OR FORFEIT HIS OR HER RETIREMENT BENEFITS FROM THE SYSTEM OR PLAN UNTIL ALL APPEALS OF THE CONVICTION HAVE BEEN FINALLY CONCLUDED OR THE TIME FOR AN APPEAL FROM THE CONVICTION HAS EXPIRED; TO PROVIDE THAT AFTER RECEIVING THE TERMINATION AND FORFEITURE ORDER FROM THE COURT, THE SYSTEM SHALL REQUEST THE ATTORNEY GENERAL FOR A DETERMINATION OF WHETHER ALL APPEALS OF THE CONVICTION HAVE BEEN FINALLY CONCLUDED OR THE TIME FOR AN APPEAL FROM THE CONVICTION HAS EXPIRED; TO PROVIDE THAT AFTER THE ATTORNEY GENERAL NOTIFIES THE SYSTEM THAT ALL APPEALS OF THE CONVICTION HAVE BEEN FINALLY CONCLUDED OR THE TIME FOR AN APPEAL FROM THE CONVICTION HAS EXPIRED, THE SYSTEM SHALL TERMINATE THE MEMBER FROM MEMBERSHIP IN THE SYSTEM OR PLAN AND THE MEMBER SHALL FORFEIT HIS OR HER RETIREMENT BENEFITS FROM THE SYSTEM OR PLAN; TO PROVIDE THAT A MEMBER WHO IS TERMINATED FROM MEMBERSHIP IN THE SYSTEM OR PLAN SHALL HAVE HIS OR HER CONTRIBUTIONS REFUNDED WITHOUT ANY INTEREST; TO PROVIDE THAT IF A MEMBER OF THE SYSTEM OR PLAN IS ALSO A MEMBER OF ANOTHER RETIREMENT SYSTEM ADMINISTERED BY THE BOARD OF TRUSTEES OF THE SYSTEM, AND THE CRIME FOR WHICH THE MEMBER WAS CONVICTED OR ENTERED A PLEA OF GUILTY OR NOLO CONTENDERE IS A FELONY INVOLVING PUBLIC FUNDS OF $50,000.00 OR MORE THAT IS COVERED BY ONLY ONE OF THE RETIREMENT SYSTEMS, THE MEMBER WILL BE TERMINATED ONLY FROM THE RETIREMENT SYSTEM IN WHICH HIS OR HER EMPLOYMENT WAS COVERED AT THE TIME THAT HE OR SHE COMMITTED THE CRIME, AND WILL FORFEIT RETIREMENT BENEFITS ONLY FROM THAT RETIREMENT SYSTEM; TO PROVIDE THAT THE SYSTEM MAY CONCLUSIVELY RELY ON A TERMINATION AND FORFEITURE ORDER FROM THE COURT AND THE NOTICE FROM THE ATTORNEY GENERAL THAT THE REQUIREMENTS OF THIS ACT HAVE BEEN MET IN TERMINATING A MEMBER FROM MEMBERSHIP IN THE SYSTEM OR PLAN; TO PROVIDE THAT THE SYSTEM IS NOT LIABLE FOR ANY MISTAKE IN THE PAYMENT OF RETIREMENT BENEFITS TO A MEMBER IN GOOD FAITH RELIANCE ON A TERMINATION AND FORFEITURE ORDER FROM THE COURT AND THE NOTICE FROM THE ATTORNEY GENERAL; TO PROVIDE THAT ANY AMBIGUITY OR UNCERTAINTY ABOUT WHETHER A MEMBER SHOULD BE TERMINATED FROM MEMBERSHIP IN THE SYSTEM OR PLAN OR FORFEIT HIS OR HER RETIREMENT BENEFITS FROM THE SYSTEM OR PLAN SHALL BE RESOLVED IN FAVOR OF THE MEMBER; TO AMEND SECTIONS 25-11-105, 25-11-111, 25-11-117, 25-11-120, 25-11-129, 25-11-305, 25-11-309, 25-11-311, 25-11-319, 25-13-3, 25-13-11, 25-13-21, 25-13-28 AND 25-13-31, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.
The proposed legislation establishes a legal framework for the termination of membership and forfeiture of benefits for members convicted of specific felonies committed on or after July 1, 2026. This includes a requirement for a separate civil proceeding in which a court determines whether all conditions for forfeiture have been met. Members convicted or who plead guilty to such felonies will not lose their benefits until all appeals have been resolved, ensuring that due process is maintained. This creates a direct impact on how retirement benefits are safeguarded and underscores ethical compliance among public employees.
House Bill 1046 aims to amend the Mississippi Code to address the conditions under which members of public employees' retirement systems can forfeit their retirement benefits. The bill stipulates that the receipt of retirement benefits from the Public Employees' Retirement System, the Supplemental Legislative Retirement System, and the Mississippi Highway Safety Patrol Retirement System is contingent upon the member’s honest and faithful performance of public duties. Specifically, a member's conviction of or guilty plea to a felony involving public funds amounting to $50,000 or more is categorized as a breach of trust, resulting in the potential forfeiture of retirement benefits.
Key points of contention surrounding HB 1046 include concerns over due process and the potential for arbitrary interpretations of what constitutes a breach of public trust. Critics may argue that the bill could disproportionately affect public servants and that the definition of felonies involving public funds is vague, which could lead to inconsistent applications of the law. Furthermore, as the bill imposes stringent conditions on public employees’ benefits, it may invite increased scrutiny and debate on fairness and accountability in public employment.