In this subtitle the following words have the meanings indicated. “Domestic relations order” means an order issued in accordance with § 21–502(a)(2) of this title, § 414(p) of the Internal Revenue Code, and regulations adopted by the Board of Trustees that assigns a benefit to a spouse, former spouse, child, or other dependent of a public employee in connection with a decree or order of alimony, child support, or divorce. “Final adjudication” means adjudication by a trial court resulting in final disposition of all charges that constitute a qualifying crime. “Public employee” means an individual who: is employed in a position listed in § 21–702 of this subtitle; and has been charged with a qualifying crime. “Qualifying crime” means a felony: that is committed in the course of a public employee’s duties and responsibilities; that is committed through the use of the public employee’s authority derived from the position of employment; and the commission of which results in, or is attempted to result in, gain, profit, or advantage for the public employee.

This subtitle applies to an individual who: is a member, former member, or retiree of the Employees’ Retirement System or the Employees’ Pension System; and has earned creditable service while employed as: the Attorney General of the State; the Comptroller of the State; the Governor of the State; the Lieutenant Governor of the State; the Secretary of State; or the Treasurer of the State. This subtitle does not apply to any service earned before January 9, 2019.

Benefits under this Division II of this article payable to a public employee are subject to forfeiture in whole or in part in accordance with this subtitle if the public employee is found guilty of, pleads guilty to, or enters a plea of nolo contendere to a qualifying crime. Benefits under this Division II may not be forfeited or reduced if the Internal Revenue Service determines that the forfeiture or reduction will negatively affect or invalidate the tax qualified status of any of the several systems. If the Internal Revenue Service determines that the application of this subtitle would negatively affect or invalidate the tax qualified status of any of the several systems, any forfeiture of benefits that took place before the Internal Revenue Service’s determination shall be reversed in accordance with § 21–707 of this subtitle to the extent necessary to comply with the determination.

If the final adjudication of charges results in conviction of a public employee, the public employee’s retirement allowance shall be forfeited in whole or in part in accordance with this section. On conviction of a public employee, the Attorney General or State’s Attorney shall file a complaint in circuit court to forfeit the public employee’s benefits in whole or in part. Notice of the complaint filed under paragraph (1) of this subsection shall be served on: the public employee; any known spouse of the public employee; any known dependents of the public employee; the public employee’s designated beneficiaries; any former spouse who has been assigned benefits under an existing domestic relations order; and the State Retirement Agency. Notwithstanding § 4–312 of the General Provisions Article, on written request, the State Retirement Agency shall provide the Attorney General or State’s Attorney with available information from the retirement records of the public employee to assist the Attorney General or State’s Attorney in providing the notice required under this subsection. The court shall enter an order requiring the forfeiture, in whole or in part, of the public employee’s benefits if the court finds by clear and convincing evidence that: the public employee was convicted of a qualifying crime; the public employee was a member of the Employees’ Pension System or the Employees’ Retirement System; and the qualifying crime for which the public employee was convicted was committed while the public employee was an active member of the Employees’ Pension System or the Employees’ Retirement System. Only service credit in the State system in which the public employee is a member when the qualifying crime is committed is eligible for forfeiture under this section. An order requiring forfeiture of benefits shall indicate the amount of benefits to be forfeited. When determining the amount of benefits to be forfeited, the court shall consider: the severity of the crime; the amount of monetary loss suffered by the State, a county, a political subdivision, or a person as a result of the crime; the degree of public trust placed in the public employee; the financial needs and resources of the public employee; the financial needs and resources of the public employee’s spouse, children, or other dependents; any interest in benefits of a former spouse established under an existing domestic relations order; and any other factors the court determines relevant. If the court enters an order requiring the forfeiture of benefits, the court may enter a domestic relations order that provides that some or all of the forfeited benefits be paid to a spouse, former spouse, child, or other dependent for purposes of child support, alimony, or marital property rights. When determining whether to enter a domestic relations order under paragraph (1) of this subsection, the court shall consider whether the public employee’s spouse, former spouse, children, or dependents were culpable or complicit in the commission of the qualifying crime. The court may not order benefits to be paid to a public employee’s spouse, former spouse, child, or other dependent in a manner that is inconsistent with the payment of benefits in the State system in which the public employee was a member. An order requiring a forfeiture of benefits issued under this section may not impair or alter an existing domestic relations order providing benefits to a former spouse of a public employee. A public employee’s interest in a benefit of a former spouse established by a domestic relations order may not be subject to a forfeiture or reduction under this subtitle. Benefits available to a public employee as a beneficiary may not be subject to a forfeiture under this subtitle.

If a public employee has retired before a forfeiture order is issued under § 21–704 of this subtitle, the Board of Trustees may recover from the public employee the amount of benefits paid to the public employee before the order. The recovery under subsection (a) of this section is limited to an amount equal to the benefits that would have been forfeited had the forfeiture order been issued before the public employee began receiving any benefits as a retiree.

This section applies to a public employee who is not a retiree. Subject to subsection (c) of this section, a public employee may submit an application for retirement. If a public employee is eligible to apply for a retirement allowance, a public employee’s application for retirement benefits: shall be considered submitted on the first day of the month after it is properly completed and submitted to the State Retirement Agency; and may not be processed by the State Retirement Agency unless and until the final adjudication of the charge that does not result in conviction.

On receipt of an order that reverses or overturns a conviction of a public employee, the court that issued a forfeiture order under § 21–704 of this subtitle shall rescind the forfeiture order and order the Board of Trustees to pay any benefits that are payable under this Division II of this article to the public employee. When a court rescinds a forfeiture order under paragraph (1) of this subsection, the court shall also rescind any domestic relations order entered in accordance with § 21–704(f) of this subtitle. If a conviction of a public employee who was a retiree before the date of conviction is overturned: the public employee’s benefits shall be restored back to the date the benefit payments ceased; the public employee’s allowance shall: be paid beginning the month after the State Retirement Agency is notified that the conviction is overturned; and include any cost–of–living adjustments that would have been made in the time between the conviction and the time benefit payments are restored; and benefit payments that would have been made during the time from the date of conviction to the date the conviction is overturned shall be made to the public employee, less any payments made in accordance with a domestic relations order directing payment of benefits to a spouse, former spouse, child, or other dependent. If a conviction of a public employee who was not a retiree before the date of conviction is overturned, the public employee may receive benefits in accordance with this Division II of this article.

A public employee subject to a forfeiture order issued under § 21–704 of this subtitle is entitled to a return of the individual’s accumulated contributions on request under § 29–501 of this article. The public employee’s accumulated contributions shall be reduced by an amount equal to any benefit payments received by the public employee that would have been subject to forfeiture and have not been recovered by the Board of Trustees under § 21–705 of this subtitle.

The Board of Trustees shall adopt regulations to implement this subtitle.