A BILL TO BE ENTITLED
AN ACT to prohibit a person who has been convicted of a felony from receiving retirement from the TEachers' and State Employees' Retirement System.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 1 of Chapter 135 is amended by adding a new section to read:
"§ 135‑18.11.  Forfeiture of retirement benefits for certain employment‑related felonies.
(a)	Except as provided in G.S. 135‑4(ii), the Board of Trustees shall not pay any retirement benefits or allowances, except for a return of member contributions plus interest, to any member who is convicted of any felony listed in subsection (b) of this section if all of the following apply:
(1)	The offense is committed while the member is an employee or a teacher.
(2)	The conduct on which the offense is based is directly related to the member's service as an employee or a teacher.
(b)	The offenses covered by this section are as follows:
(1)	Articles of Chapter 14 of the General Statutes: Article 5A, Endangering Executive and Legislative Officers; Article 6, Homicide; Article 7A, Rape and Kindred Offenses; Article 8, Assaults; Article 10, Kidnapping and Abduction; Article 13, Malicious Injury or Damage by Use of Explosive or Incendiary Device or Material; Article 14, Burglary and Other Housebreakings; Article 15, Arson and Other Burnings; Article 16, Larceny; Article 17, Robbery; Article 18, Embezzlement; Article 19, False Pretense and Cheats; Article 19A, Obtaining Property or Services by False or Fraudulent Use of Credit Device or Other Means; Article 20, Frauds; Article 21, Forgery; Article 26, Offenses Against Public Morality and Decency; Article 26A, Adult Establishments; Article 27, Prostitution; Article 28, Perjury; Article 29, Bribery; Article 31, Misconduct in Public Office; Article 35, Offenses Against the Public Peace; Article 36A, Riots and Civil Disorders; Article 39, Protection of Minors; and Article 60, Computer‑Related Crime. 
(2)	Possession or sale of drugs in violation of the North Carolina Controlled Substances Act, Article 5 of Chapter 90 of the General Statutes, and alcohol‑related offenses such as sale to underage persons in violation of G.S. 18B‑302 or driving while impaired in violation of G.S. 20‑138.1 through G.S. 20‑138.5. 
(3)	Similar crimes under federal law.
(c)	All monies forfeited under this section shall be remitted to the Civil Penalty and Forfeiture Fund."
SECTION 2.  G.S. 135‑4 is amended by adding a new subsection to read:
"(ii)	If a member who is an employee or a teacher and has not vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135‑18.11 for acts committed after July 1, 2011, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is an employee or a teacher and has vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135‑18.11 for acts committed after July 1, 2011, then that member is not entitled to any creditable service that accrued after July 1, 2011."
SECTION 3.  This act becomes effective July 1, 2011.