Did an Illinois state employee convicted of theft and official misconduct forfeit her pension benefits?
Plain-English summary
Illinois law forbids public employees from collecting pensions if their public service ended in a felony conviction connected to that employment. The State Employees' Retirement System (SERS) asked the AG whether Mary A. Hurst, who had been convicted of theft, official misconduct, and wire fraud arising from her state employment, had forfeited her pension benefits.
Attorney General Lisa Madigan concluded yes. Section 14-149 of the Illinois Pension Code triggers forfeiture when a SERS member is convicted of a felony "relating to or arising out of or in connection with his or her service as an employee." Hurst's three convictions all flowed directly from her conduct in office, so they fell squarely within the forfeiture trigger.
The AG also confirmed that even after forfeiture, Hurst was entitled under the Pension Code to a refund of her own contributions to the system. The forfeiture was of the pension benefit, the matching public contribution and the years-of-service-based annuity, not of her contributions.
Currency note
This opinion was issued in 2015. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
Historical summary
How felony forfeiture of pension benefits works
Illinois has a long-standing public policy that taxpayer-funded pensions should not flow to officials who used their offices for criminal purposes. Section 14-149 of the Pension Code (and parallel provisions in other Illinois pension articles) implements that policy by ordering forfeiture of "any benefits to which he or she would otherwise be entitled" when an employee is convicted of "any felony relating to or arising out of or in connection with his or her service as an employee."
The forfeiture trigger has three elements: a felony conviction, the felony relates to or arises from the employment, and the person was a system member. The AG opinion walks through how each element was met for Mrs. Hurst.
What this opinion did and did not address
This was an applied opinion: the AG was not asked to interpret § 14-149 in the abstract, but to apply it to a specific person. The opinion concluded SERS was right to forfeit Hurst's benefits.
It also confirmed her right to a refund of her own contributions under the Pension Code. That distinction matters: the forfeiture is of the public-funded benefit, not the employee's deposit. Most public-employee pensions are partially funded by employee paycheck deductions; the forfeiture statute does not retroactively confiscate the employee's own dollars.
Why this matters more broadly
The opinion was a useful precedent for SERS and other Illinois pension systems on how to apply the felony forfeiture statute. Common SERS questions: does the conviction need to be a state-court conviction or do federal convictions count? (The opinion treats federal convictions like wire fraud as qualifying.) Does post-employment indictment but conviction after retirement count? (Yes, if the conduct occurred during employment.) Does a guilty plea count as a "conviction"? (Yes.)
Common questions
Q: When does an Illinois public employee forfeit a pension under § 14-149?
A: When they are convicted of any felony relating to or arising out of or in connection with their public service. The connection to public service is the trigger; not all felony convictions cause forfeiture.
Q: Does forfeiture take away the employee's own contributions?
A: No. Forfeiture of pension benefits leaves the employee entitled to a refund of their own contributions. The forfeiture is of the publicly funded portion of the pension and the years-of-service annuity calculation.
Q: Do federal convictions count?
A: Yes, including federal wire fraud convictions, as long as the underlying conduct relates to or arises from the public service.
Q: What if the conviction is overturned on appeal?
A: The Pension Code's procedure for restoring benefits after a successful appeal varies by retirement system. Practitioners should consult the specific pension article and the system's procedures.
Q: Does this apply to municipal employees, teachers, judges, etc.?
A: This opinion was about SERS (state employees), but parallel forfeiture provisions exist in other Pension Code articles (IMRF, TRS, judicial, GARS, etc.). Each has slightly different language.
Background and statutory framework
Article 14 of the Illinois Pension Code governs SERS. Section 14-149's felony forfeiture clause is the operational mechanism. Theft (720 ILCS 5/16-1), official misconduct (720 ILCS 5/33-3(b)), and federal wire fraud (18 U.S.C. § 1343 and the Illinois analog at 720 ILCS 5/17-24(b)) are common predicate convictions for state employee forfeiture.
The opinion applies a straightforward textual reading: if the felony arose from the employment, the forfeiture clause applies. The AG did not need to resolve any ambiguity for Mrs. Hurst's case.
Citations and references
Statutes:
- 40 ILCS 5/14-149 (Pension Code felony forfeiture)
- 720 ILCS 5/16-1 (theft)
- 720 ILCS 5/33-3(b) (official misconduct)
- 720 ILCS 5/17-24(b) (wire fraud)
Source
- Index page: https://illinoisattorneygeneral.gov/opinions/
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Original PDF: https://illinoisattorneygeneral.gov/dA/83a932ae46/2015%2015-007%20PENSIONS%20Felony%20Forfeiture%20of%20Pension%20Benefits.pdf
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Index page: https://illinoisattorneygeneral.gov/opinions/
- Original PDF: https://illinoisattorneygeneral.gov/dA/83a932ae46/2015%2015-007%20PENSIONS%20Felony%20Forfeiture%20of%20Pension%20Benefits.pdf
Original opinion text
OFFICE OF THE ATTORNEY GENERAL
STATE OF ILLINOIS
Lisa Madigan December 29, 2015
ATTORNEY GENERAL
FILE NO. 15-007
PENSIONS:
Felony Forfeiture
of Pension Benefits
Mr. Timothy B. Blair
Executive Secretary
State Employees' Retirement System
2101 South Veterans Parkway
P.O. Box 19255
Springfield, Illinois 62794-9255
Dear Mr. Blair:
Pension Cofle (the Pension Code) (
the State Emp
conviction of the offenses of theft (720 ILCS 5/16-1(a)(1)(A) (West 2012)), official misconduct
(720 ILCS 5/33-3(b) (West 2012)), and wire fraud (720 ILCS 5/17-24(b) (West 2012)). For the
reasons stated below, it is my opinion that Mary A. Hurst's criminal convictions require the
forfeiture of her pension benefits.
500 South Second Street, Springfield, Ilinois 62706 © (217) 782-1090 © “TY: (217) 785-2771 © Fax: (217) 782-7046
100 West Randolph Street, Chicago, Iinois 60601 ¢ (312) 814-3000 ¢ TTY: (312) 814-3374 © Fax: (312) 814-3806
1001 Ease Main Carbondale Tiitnais 42901 © (618) 529-6400 e TTY: (618) 529-6403 @ Fax: (618) 529-4416 + SoD.
Mr. Timothy B. Blair - 2
BACKGROUND
According to the records of the Circuit Court of the Twentieth Judicial Circuit, on
September 10, 2015, Hurst was convicted, on a plea of guilty, of one count of theft, six counts of
official misconduct, and five counts of wire fraud. Docket Entry, People v. Hurst, Docket No.
2015-CF-79 (Circuit Court, Randolph County). Hurst was sentenced to 30 months of probation
and was ordered to pay $114,819.00 in restitution to the State of Illinois. Certificate and Order
of Probation, People v. Hurst, Docket No. 2015-CF-79 (Circuit Court, Randolph County).
The multi-count Information,' pursuant to which the guilty pleas were entered,
charged that Hurst, in her official capacity as a Human Services Caseworker employed by the
Illinois Department of Human Services (IDHS), performed acts that she knew violated the law.
Information, Counts II, VIII through XII, People v. Hurst, Docket No. 2015-CF-79 (Circuit
Court, Randolph County) (Information). Specifically, Hurst used her computer at IDHS' Family
Community Resource Center in Randolph County to generate IIlinois Link Card Authorization of
Assistance Actions for fictitious clients and then obtained Link cards and PIN numbers to access
funds from fictitious Supplemental Nutrition Assistance Program (SNAP) or Cash Grant
accounts.” Information, Counts III through XII. Further, between March 1, 2012, and on or
'On September 10, 2015, the State filed an Amended Information changing the theft count (Count
I) from a Class X felony to a Class 1 felony. Amended Information, Count I, People v. Hurst, Docket No. 2015-CF-
79 (Circuit Court, Randolph County).
?IDHS issues Illinois Link cards to individuals who are approved to receive cash assistance or
SNAP benefits. See Illinois Department of Human Services Website, available at http://www.dhs.state.il.us/
page.aspx?item=30371.
Mr. Timothy B. Blair - 3
about March 31, 2015, Hurst "knowingly obtained unauthorized control over property [of the
owner, IDHS,] * * * in an amount of value exceeding $100,000.00, to wit: $114,819.00 * * *
intending to deprive said owner permanently of the use and benefit of said property[.]" Amended
Information, Count I, People v. Hurst, Docket No. 2015-CF-79 (Circuit Court, Randolph
County). The offense of theft of property exceeding $100,000.00 but not exceeding $500,000.00
in value is a Class 1 felony under Illinois law (720 ILCS 5/16-1(b)(6) (West 2012)); the offenses
of wire fraud and official misconduct are Class 3 felonies under Illinois law. 720 ILCS 5/17-
24(d), 33-3 (West 2012).
ANALYSIS
Section 14-149 of the Pension Code requires the forfeiture of a participant's
retirement annuities and other pension benefits upon his or her conviction of a service-related
felony:
Felony conviction. None of the benefits herein provided
for shall be paid to any person who is convicted of any felony
relating to or arising out of or in connection with his service as
an employee. (Emphasis added.)
The purpose of the Pension Code's felony forfeiture provisions is to discourage
official misconduct and to implement the public's right to conscientious service from those in
governmental positions by denying retirement benefits to public servants convicted of violating
the public's trust. Ryan v. Board of Trustees of the General Assembly Retirement System, 236 Ill.
2d 315, 322 (2010); Kerner v. State Employees' Retirement System, 72 Il. 2d 507, 513 (1978),
Mr. Timothy B. Blair - 4
cert. denied, 441 U.S. 923, 99 S. Ct. 2032 (1979). The critical inquiry in determining if a felony
is "relat[ed] to or ar[ose] out of or in connection with" service as an employee is whether a nexus
existed between the employee's criminal wrongdoing and the performance of his or her official
duties. Devoney v. Retirement Board of the Policemen's Annuity & Benefit Fund for the City of
Chicago, 199 Ill. 2d 414, 419 (2002); Bauer v. State Employees' Retirement System, 366 Ill. App.
3d 1007, 1015-16 (2006), appeal denied, 222 Ill. 2d 567 (2006).
Hurst's convictions of theft, wire fraud, and official misconduct clearly related to,
arose out of, or were in connection with her service as an employee of IDHS. Indeed, the official
misconduct offenses to which Hurst pled guilty are predicated on the fact that she was acting in
her capacity as a public employee when the offenses occurred. Further, as a State employee,
Hurst was under a duty to use public property only for lawful public purposes. See generally Ill.
Const. 1970, art. VIII, §1. Hurst violated that duty by using her position as a Human Services
Caseworker to misappropriate State property for her financial benefit. Were it not for her
employment with IDHS, Hurst would not have been in a position to use the State's property to
engage in this violation of the public trust. This is precisely the type of misconduct that section
14-149 of the Pension Code was designed to discourage.
CONCLUSION
Therefore, based on the records of the Circuit Court of the Twentieth Judicial
Circuit, it is my opinion that Mary A. Hurst has forfeited her pension benefits pursuant to section
14-149 of the Pension Code. She does retain the right to a refund of her contributions to the
Mr. Timothy B. Blair - 5
system, however, pursuant to Illinois case law. Shields v. Judges' Retirement System, 204 Ill. 2d
488, 497 (2003); see also Shields v. State Employees Retirement System, 363 Ill. App. 3d 999
(2006), appeal denied, 219 Ill. 2d 598 (2006).
Very truly yours,
LISA MADIGAN
ATTORNEY GENERAL