Did an Illinois state employee convicted of theft and official misconduct forfeit her pension benefits?

Plain-English summary

The State Employees' Retirement System (SERS) asked whether Mary A. Hurst had forfeited her pension after pleading guilty to theft, official misconduct, and wire fraud. The charges arose from her work as a caseworker for the Illinois Department of Human Services. All three offenses were Illinois state-law crimes prosecuted in Randolph County circuit court.

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 said Hurst retained a right to a refund of her own contributions to SERS under Illinois case law. The opinion did not calculate either her forfeited benefits or the refund.

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."

For a service-related felony, the opinion says the critical question is whether there is a connection between the criminal wrongdoing and the employee's official duties. Hurst used her state position and work computer to create assistance records for fictitious clients, obtain Link cards and PINs, and access public assistance funds.

What this opinion did and did not address

The AG applied section 14-149 to Hurst's convictions, concluding that her use of state employment to misappropriate state property brought the offenses within the forfeiture provision.

It also confirmed her right to a refund of her own contributions, citing Illinois decisions in the Shields cases. The opinion does not quantify the refund or describe the funding breakdown of her forfeited benefits.

Why this matters more broadly

The court records showed that Hurst pleaded guilty to the Illinois offenses. The AG relied on that conviction and the connection between her misconduct and state service. The opinion does not analyze federal convictions or the timing of indictment, retirement, or an appeal.

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: In Hurst's case, the AG said she retained the right to a refund of her contributions under Illinois case law, despite forfeiting her pension benefits.

Q: Was Hurst's wire fraud conviction federal?
A: No. She pleaded guilty in Randolph County circuit court to wire fraud under 720 ILCS 5/17-24(b), an Illinois statute. The opinion does not decide whether a federal conviction would trigger forfeiture.

Q: Did the opinion address a conviction overturned on appeal? A: No. It relied on Hurst's guilty plea and the court records of her conviction. It did not discuss what would happen after a reversal.

Q: Does this apply to municipal employees, teachers, judges, etc.? A: This opinion addressed section 14-149, the SERS provision. It did not decide a case involving another retirement system.

Background and statutory framework

Section 14-149 of the Illinois Pension Code denies SERS pension benefits to a person convicted of a felony connected to service as an employee. Hurst's convictions were for Illinois theft (720 ILCS 5/16-1), official misconduct (720 ILCS 5/33-3(b)), and wire fraud (720 ILCS 5/17-24(b)).

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/
• 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:

I have your letter inquiring whether, pursuant to section 14-149 of the Illinois Pension Code (the Pension Code) (40 ILCS 5/14-149 (West 2014)), Mary A. Hurst, a member of the State Employees' Retirement System, has forfeited her pension benefits as a result of her 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