Snyder signs law to take away retirement benefits from corrupt public workers

by

comment

Public employees who've been convicted of felonies that breach the public's trust will lose some retirement benefits under a new Michigan law.

The law enacted Wednesday requires a public employee or retiree to relinquish accumulated employer contributions toward a retirement benefit if convicted of crimes like misusing funds or taking bribes. Michigan law had previously allowed for the forfeiture of benefits if a public employee was convicted of such crimes, but the new rule requires it and extends the penalty to a convicted worker’s 401(k) — not just their pension.

"Protecting the integrity of retirement contributions employers make is critically important," Governor Rick Snyder said in a release after signing the the legislation sponsored by White Lake Republican Rep. Jim Runestad.

The law comes as Michigan Attorney General Bill Schuette tries to take away the pensions of 12 former Detroit Public School officials convicted in a $2.7 million kickback scheme.



Schuette in October initiated civil forfeiture actions aiming to take away all DPS contributions from the time the bribery began until the time the employees were terminated or retired.

We welcome readers to submit letters regarding articles and content in Detroit Metro Times. Letters should be a minimum of 150 words, refer to content that has appeared on Detroit Metro Times, and must include the writer's full name, address, and phone number for verification purposes. No attachments will be considered. Writers of letters selected for publication will be notified via email. Letters may be edited and shortened for space.

Email us at letters@metrotimes.com.

Support Local Journalism.
Join the Detroit Metro Times Press Club

Local journalism is information. Information is power. And we believe everyone deserves access to accurate independent coverage of their community and state. Our readers helped us continue this coverage in 2020, and we are so grateful for the support.

Help us keep this coverage going in 2021. Whether it's a one-time acknowledgement of this article or an ongoing membership pledge, your support goes to local-based reporting from our small but mighty team.

Join the Metro Times Press Club for as little as $5 a month.