Tennessee § 8-35-124 - Felony convictions constituting malfeasance in office — Effect on benefits.

§ 8-35-124. Felony convictions constituting malfeasance in office — Effect on benefits.

No employee or elected or appointed official of the state or any political subdivision thereof shall be entitled to receive retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such employee or official is convicted in any court of this state of a felony arising out of the employee's or official's employment or official capacity, constituting malfeasance in office. Notwithstanding any other law to the contrary, no employee or elected or appointed official of this state or any political subdivision thereof shall be entitled to receive retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such employee or official is convicted in any state or federal court of a felony arising out of that person's employment or official capacity, constituting malfeasance in office. Notwithstanding any other law to the contrary, each time a person is elected to a public office of this state or any political subdivision of this state, such person shall, as a condition of such election, be deemed to consent and agree to the forfeiture of such person's retirement benefits from the Tennessee consolidated retirement system, any superseded retirement system or any other public pension system, if such person is convicted in any state or federal court of a felony arising out of that person's official capacity, constituting malfeasance in office. Notwithstanding subsection (e) or any other law to the contrary, this subdivision (a)(3) shall apply regardless of the date the person became a member of the public pension system, such person having consented to this subdivision (a)(3) as a condition of such election. Upon initial conviction, or upon a plea of guilty or nolo contendere, any person subject to this section shall: Have the employee's or official's benefit stopped immediately, if the employee or official is receiving a benefit; and Receive a refund of the accumulated contributions credited to the employee's or official's account, if any, less any benefits received unless the person elected to have a monthly retirement allowance paid upon such person's death in accordance with subsection (f). The employing agency is responsible for immediately notifying the administrator of the retirement system of the conviction of any person subject to this section. In the event the conviction of such person is later overturned in any court and such person is acquitted, or is granted a full pardon, the person shall be restored to all rights, privileges and benefits as if the conviction had never occurred. Subdivision (a)(1) applies only to persons who become members of public pension plans after July 1, 1982. Subdivision (a)(2) applies only to persons who become members of public pension plans on or after May 31, 1993. Any person convicted of a felony as provided in this section may elect, within six (6) months of the person's conviction, to have a monthly retirement allowance paid to whomever that person had designated as beneficiary on file with the retirement system at the time of that person's conviction; provided, that, such beneficiary must have been that person's spouse or child at the time of that person's conviction. The benefits shall be paid to such beneficiary following the person's death and upon meeting all other eligibility requirements applicable to a beneficiary. The amount of any allowance payable hereunder shall be equal to the retirement allowance which would have been payable had the person retired under the survivorship option elected. Acts 1982, ch. 927, § 4; T.C.A. § 8-35-116(b)(1)(E) ; Acts 1993, ch. 508, §§ 1, 2, 5, 6; 2006 (1st Ex. Sess.), ch. 1, § 42(a). Compiler's Notes. Acts 2006, ch. 1, § 1 of the extraordinary session of the 104th general assembly provided that the act is and may be cited as the “Comprehensive Governmental Ethics Reform Act of 2006.” Acts 2006 (1st Ex. Sess.), ch. 1, § 42(b) of the extraordinary session of the 104th general assembly provided that, if the provisions of act section 42(a) are declared to be invalid by a court of competent jurisdiction, and such determination has become final, then the former provisions of § 8-35-124 , as such section existed immediately prior to February 15, 2006, shall be revived and be in full force and effect as if such provisions had remained in full force and effect at all times. Attorney General Opinions. Pension forfeiture provisions in T.C.A. § 8-35-124(a)(1) and (2) could not be applied to a legislator elected before the relevant effective dates of each section, regardless of how many times that legislator has been re-elected, OAG 05-114, 2005 Tenn. AG LEXIS 116 (7/19/05). Constitutionality of requiring public officers and employees who accept re-election, re- appointment, promotion, or a change in classification to forfeit state pension benefits upon a felony conviction, OAG 05-152, 2005 Tenn. AG LEXIS 154 (10/4/05). Under T.C.A. § 8-35-124 , the benefits that an employee or official of the State is entitled to receive from the Tennessee Consolidated Retirement System must be terminated upon a verdict of guilty by a jury, a finding of guilt by a judge in a bench trial, or the entry of a plea of guilty or nolo contendere of “a felony arising out of the employee's or official's employment or official capacity, constituting malfeasance in office.” OAG 13-78, 2013 Tenn. AG LEXIS 79 (10/21/13).