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HOUSE DOCKET, NO. 18 FILED ON: 10/31/2022
HOUSE . . . . . . . . . . . . . . . No. 18
So much of the recommendations of the Teachers' Retirement System (House, No. 16) as relates
to pension forfeiture. Public Service.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act relative to pension forfeiture.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Paragraph (m) of subdivision 1 of section 5 of chapter 32 of the general
2laws, as appearing in the 2014 Official Edition, is hereby amended in line 76 by adding after the
3word “contrary”, the following: “except as provided in section 15 of this chapter,”.
4 SECTION 2. Subdivision 1 of section 10 of chapter 32 of the general laws, as appearing
5in the 2014 Official Edition, is hereby amended by striking the phrase “without moral turpitude
6on his part” in lines 6,9,84 and 126.
7 SECTION 3. Section 15 of chapter 32 of the general laws is hereby amended by striking
8everything after the title and inserting in place thereof the following new section 15.
9 Section 15.
10 (1) Initiation of Forfeiture Proceedings. Proceedings under this section may be initiated
11by the board or the commission. The board shall notify the member by certified mail when
12proceedings are initiated. If the member refuses the delivery of the mail, it shall be deemed to 2 of 8
13have been received. Unless otherwise agreed to by the parties, a hearing shall be held no less
14than ten days nor more than ninety days after the member has received notification. The board
15shall conduct the hearing pursuant to the provisions of 840 CMR 10.12. The board shall prepare
16and file with its clerk or secretary a certificate containing its findings and decision, copies of
17which shall be sent to the proper parties within fifteen days after completion of such hearing.
18 (2) Forfeiture of a retirement allowance upon conviction. Upon final conviction of a
19felony criminal offense involving violation of the laws applicable to a member’s office or
20position or arising out of and in the course of their employment, a member shall be subject to the
21forfeiture provisions of this section. A retirement board, upon notification of such conviction of a
22member, must hold a hearing to determine whether the crimes for which a member was
23convicted involved the laws applicable to the member’s office or position or if said criminal
24offenses were committed while the member was in the course of his or her employment, the total
25value of the member’s potential retirement benefits, and the amount of said benefits which shall
26be forfeited. For the purposes of this section, ‘criminal offense involving violation of the laws
27applicable to a member’s office or position,’ shall also include, but not be limited to, in the case
28of a member whose primary job responsibilities involve contact with children or any member of
29the Massachusetts Teachers’ Retirement System or a teacher who is a member of the Boston
30Retirement System, a conviction for knowing purchase or possession of visual material of a child
31depicted in sexual conduct under section 29C of chapter 272 of the general laws, or a conviction
32of a sex offense involving a child as defined in section 178C of chapter 6 of the general laws
33whom the member has contact with as part of his or her official duties, or a conviction of any
34other sex offense or sexually violent offense, as those terms are defined in said section 178C, in
35which the victim was any person under the age of 18. 3 of 8
36 (3) Forfeiture amount. Any member with ten or more years of creditable service on the
37date of the offense who is subject to forfeiture under the foregoing paragraph (2) shall forfeit
38their retirement allowance as determined by the board. A member’s allowance shall be reduced
39by either one-third, two-thirds, to a minimum allowance or their right to an allowance shall be
40forfeited entirely. Such minimum allowance shall be equal to the amount a member would
41receive in group 1 having ten years of creditable service and at the minimum age for a group 1
42employee; provided that in no event shall a member whose pension has been reduced to the
43minimum allowance be eligible for any retirement benefit prior to reaching the minimum age for
44a group 1 employee; and provided further that, except in cases of total forfeiture, a reduced
45retirement allowance shall not be reduced below the amount of the annual annuity portion. Such
46reduced allowance shall be payable for the life of the member; provided that, if the member
47retires having elected option (c) the beneficiary shall receive, upon the death of the member, the
48option (c) survivor benefit as if forfeiture had not occurred, based on the age and actual
49creditable service at the time of the member’s retirement, if the board determines that the
50beneficiary (i) had no role in the illegal conduct for which the member was convicted, (ii) did not
51have knowledge of the illegal conduct, and (iii) did not commit nor conspire to commit the
52murder or voluntary manslaughter of the member upon whom the retirement allowance is based.
53In the event the entire allowance is forfeited, the member shall not be entitled to receive a
54retirement allowance under the provisions of section one to 28, nor shall any beneficiary be
55entitled to receive a retirement allowance under such provisions on account of such member.
56Further, in the event of total forfeiture, unless otherwise prohibited by law, a member or
57beneficiary shall receive only a return of their accumulated total deductions; provided, however,
58that the rate of regular interest for the purpose of calculating accumulated total deductions shall 4 of 8
59be zero. Any retirement allowance received by a member up to the decision of total forfeiture by
60a board shall be offset against and reduce the accumulated total deductions otherwise due the
61member. In determining the amount of the forfeiture the board must consider and make findings
62of fact relative to the following factors:
63 (1) the severity of the crime for which the member was convicted including the sentence
64imposed as well as the maximum sentence provided for by law;
65 (2) the amount of monetary loss suffered by the state, municipality, political subdivision,
66or by any other person as a result of the crime for which the member was convicted or the
67financial gain realized by the member;
68 (3) the degree of public trust reposed in the member by virtue of the member’s office or
69position and the degree to which it was violated;
70 (4) if the crime was part of a fraudulent scheme against the state or political subdivision,
71the role of the member in the fraudulent scheme;
72 (5) any recommendation by the prosecuting attorney or their office to the degree of
73forfeiture; and
74 (6) any such other factors as, in the judgment of the board, justice may require.
75 Any member who has had their retirement allowance forfeited entirely or has had a
76portion of their retirement allowance forfeited under this paragraph shall be ineligible to become
77a member of a different retirement system and is also prohibited from increasing their allowance
78from the forfeited amount except by cost of living increases granted pursuant to sections 102 and
79103. 5 of 8
80 Any member who has had their retirement allowance forfeited entirely or has had a
81portion of their retirement allowance forfeited under this paragraph shall cease to be an active
82member of the retirement system and shall be ineligible for membership in any retirement
83system.
84 (4) Forfeiture for members having less than ten years of creditable service. Any member,
85having less than ten years of creditable service on the date the offense is committed, who upon
86conviction is subject to the provisions of this section shall forfeit all rights to a retirement
87allowance based upon any creditable service prior to and after the date of the offense and shall
88receive a return of his accumulated total deductions; provided, however, that the rate of regular
89interest for the purpose of calculating accumulated total deductions shall be zero. The member
90shall thereupon cease to be a member in the retirement system and shall be ineligible to become
91 a member of any retirement system.
92 (5) Notification. If a current employer, last employer, the attorney general or a district
93attorney becomes aware of a final conviction of a member of a retirement system under
94circumstances which may require forfeiture of the member's rights to a pension, or retirement
95allowance pursuant to this chapter, section 59 of chapter 30 or section 25 of chapter 268A, they
96shall immediately notify the retirement board and the commission of such conviction.
97 (6) Repayment of allowance. If a member's final conviction of an offense results in a
98forfeiture of rights under this chapter, the member shall forfeit, and the board shall require the
99member to repay all benefits in excess of the allowable amount received after the date of the
100offense of which the member was convicted. Following a member’s conviction and partial 6 of 8
101forfeiture, the member’s retirement allowance will be reduced, upon such terms and conditions
102as the board may determine, until all excess payment amounts are recovered.
103 (7) Misreported Salary. In no event shall any member be entitled to receive a retirement
104allowance under this chapter, which is based upon a salary that was concealed from or
105knowingly misreported to the commonwealth, or any political subdivision, district or authority of
106the commonwealth. If a member concealed compensation from or knowingly misreported
107compensation to an entity to which the member was required to report the compensation, even if
108the reporting was not required for purposes of calculating the member's retirement allowance, the
109member's retirement allowance shall be based only upon the regular compensation actually
110reported to that entity or the amount reported to the board, whichever is lower. Unless otherwise
111prohibited by law, such member shall receive a return of any accumulated total deductions paid
112on amounts in excess of the compensation actually reported, but no interest shall be payable on
113the accumulated deductions returned to the member. The board shall notify the commission of
114any proceedings commenced pursuant to this subdivision and shall provide any and all
115documents relating to said proceedings upon request of the commission. Notwithstanding the
116waiver provisions of paragraph (a) of subdivision 3 of section 21 of chapter 32 of the general
117laws any calculations performed pursuant to this section will be submitted to the commission for
118approval.
119 (8) Appeal of Forfeiture. Any person who is aggrieved by a decision made pursuant to
120this section regarding the forfeiture of all or any portion of a member’s retirement allowance
121under this section may, within thirty days after the certification of the decision bring a petition in
122the superior court. This action shall be commenced in the Massachusetts Superior Court covering
123the geographic area in which a member resides or was convicted, or in Suffolk Superior Court. 7 of 8
124The court shall review all legal issues under a de novo standard, but may base its determination
125either on the administrative record below, or may, in its discretion, request additional evidence.
126 (9) Restitution. In no event shall any member after final conviction of an offense
127involving the funds or property of any governmental unit in which or by which he is employed or
128was employed at the time of his retirement or termination of service, as the case may be, or of
129any system of which he is a member, be entitled to receive a retirement allowance or a return of
130his accumulated total deductions under the provisions of sections one to twenty-eight inclusive,
131nor shall any beneficiary be entitled to receive any benefits under such provisions on account of
132such member, unless and until full restitution for any such misappropriation has been made.
133Restitution may be made using all or a portion of the total deductions of the member on account
134with a retirement system. If restitution is made using the accumulated total deductions of the
135member on account with a retirement system then the annuity portion of any retirement
136allowance will be reduced when a retirement allowance becomes effective or when a retirement
137allowance is resumed, as the case may be. The pension portion of the retirement allowance shall
138remain unchanged from the allowance determined using the accumulated total deductions in the
139member’s account prior to restitution.
140 SECTION 4. Subdivision 3 of section 16 of said chapter 32 is hereby amended in line 63
141by striking the phrase: “or any member who is aggrieved by any action taken or decision of a
142board or the public employee retirement administration commission rendered with reference to
143his dereliction of duty as set forth in section 15,”. 8 of 8
144 SECTION 5. Subdivision 3 of section 16 of said chapter 32 is hereby amended in line
145113 by adding after the word “rendered”: , except decisions made or actions taken pursuant to
146section 15 of this chapter,.
147 SECTION 6. Section 105 of said chapter 32 is hereby amended by adding the following
148paragraph;
149 (d) Any member having had their retirement allowance forfeited entirely or having had
150any portion of their retirement allowance forfeited pursuant to section 15 of this chapter shall be
151ineligible for reinstatement to service under the provisions of this section.
152 SECTION 7. Paragraph (b) of subdivision (2) of section (8) of chapter 32 is hereby
153amended by inserting in line 105 after the word “compensation”: ; provided, however, that any
154member who has had their retirement allowance forfeited entirely or had any portion of their
155retirement allowance forfeited pursuant to section 15 shall not become an active member of the
156retirement system upon reinstatement but shall contribute to the deferred compensation fund
157established by section 64D of chapter 29.