Effective January 1, 2013, PEPRA established pension forfeiture, without exception, for all public employees convicted of job-related conduct, in pursuit of office, or in connection with obtaining salary, retirement, or other benefits.

PEPRA requires the forfeiture of “all accrued rights and benefits in any public retirement system” by any public employee convicted of any felony, as of the earliest date of the crime, “for conduct arising out of or in the performance of his or her official duties, in pursuit of the office or appointment, or in connection with obtaining salary, disability retirement, service retirement, or other benefits.”

Member Paid Contributions

Employees are entitled to a return of their member-paid contributions, without interest, made during the forfeited period (CCCERA will reverse the member-paid contributions and service for the forfeited period). The employer share stays in the employer’s pool and is considered when the employer rates are recalculated in their annual valuation. The member-paid contributions for the forfeited period are first applied to any overpayment owed to CCCERA and any remaining funds will be returned to the member. CCCERA must notify the court and district attorney at least three business days before the funds are released to the member.

Sentencing

A felony reduced to a misdemeanor, dismissed or vacated upon sentencing does not cancel the earlier conviction or guilty plea.

Reversal of Conviction

A reversal is an appellate court decision. In cases where the conviction is reversed, the member can redeposit the contributions from the forfeited period.

Note:

• The employee and the prosecuting agency must notify the employer within 60 days of the felony conviction.
• The employer must notify CCCERA within 90 days of the employee’s conviction.
• Upon conviction, employers must provide CCCERA a Notice Of Public Employee Felony Conviction (Form 503) and a copy of related court documents.

No exceptions apply. (Gov. Code Section 7522.72 and 7522.74).