LANSING, MI (AP) — Michigan Gov. Rick Snyder has signed legislation requiring that public employees convicted of a crime related to their work lose a portion of their pension or 401(k).
Michigan law had allowed for forfeiture of public employees’ retirement benefits if they misuse funds or take bribes. The new law enacted Wednesday mandates such forfeitures and applies them to a convicted worker’s 401(k) — not just a pension.
They will lose the portion of a benefit contributed by the employer, including earnings on those contributions.
Snyder says in a statement that “protecting the integrity of retirement contributions employers make is critically important.”