Section 1600.455  Benefit Forfeitures Relating to Felony Convictions

Purpose.  This Section implements Section 15-187 of the Code concerning the forfeiture of benefits, which provides that none of the benefits provided under Article 15 of the Code shall be paid to any person who is convicted of any felony relating to or arising out of or in connection with a person's service as an employee from which the benefit derives. [40 ILCS 5/15-187]

a)         Date of Conviction.  The benefits subject to forfeiture under this Section shall be limited to benefits that are payable on or after the date on which a sentence is imposed by a court of competent jurisdiction following a judgment or conviction of a felony.  The System shall not suspend or impair any vested right under the Code prior to the date of such sentencing.  The forfeiture under this Section shall be applied beginning on the date of the sentencing even if the criminal conviction is appealed to an appellate court.  If the conviction is overturned on appeal by a final, non-appealable judgment, then the System shall pay the member any previously forfeited benefits without interest.  If the member received a refund of contributions under subsection (b), only the forfeited benefits that were payable until the date of such refund shall be paid, without interest.

b)         Refund Rights.  Notwithstanding the forfeiture of any benefit under this Section, a participant or annuitant shall be entitled to receive a refund of any employee contributions made under Section 15-157 of the Code, but shall not be entitled to any employer contributions or any interest.  In the case of a member of the Retirement Savings Plan, the member shall be entitled to receive a refund of employee contributions (adjusted for any gains and losses up to the date of the refund), but the refund shall not include any employer contributions (including any gains or losses earned on those contributions).

c)         Employment with Different Employers. The conviction of a felony relating to or arising out of or connection with a person's service earned under a particular employer shall not be applied to service earned under a different employer that bears no relation to the felony. 

d)         Multiple Positions, Appointments, or Contracts with the Same Employer.  The conviction of a felony relating to or arising out of or in connection with service earned under a particular employer shall cause the forfeiture of all benefits derived from all service earned under that employer, even if the felony did not relate to, did not arise out of, or was not in connection with other periods of service earned under that employer.

(Source:  Added at 49 Ill. Reg. 3321, effective February 26, 2025)