TRENTON, NJ – A new bill is under consideration in New Jersey, aiming to intensify pension forfeiture regulations for public officials. This bill requires the board of trustees of any state or locally-administered pension fund or retirement system to order the forfeiture of all service credits or retirement benefits of members convicted of a crime related to their public service.
The bill targets any member, whether elected or appointed, who is convicted under state, other state, or federal laws for misconduct during their service in a public office or position. The misconduct must be directly related to their role and render their service dishonorable. Importantly, the forfeiture applies regardless of whether the pension or retirement system is linked to the office or position involved in the misconduct.
Under current law, complete forfeiture of pension or retirement benefits is already mandated for members convicted of specific crimes that relate to their office or employment, provided the pension comes from the system covering the office involved in the offense.
Additionally, the present law grants the board of trustees of a pension system the discretion to order full or partial forfeiture of pensions for any misconduct that taints public service as dishonorable. The board takes into account 11 factors when evaluating the public service record.