penalties

Section 15 establishes forfeiture of retirement benefits for members who misappropriate public funds or are convicted of crimes related to their office. Following a board hearing, a member found to have misappropriated funds forfeits retirement allowances and accumulated deductions up to the amount misappropriated. Final criminal convictions—including for bribery, extortion, or general workplace misconduct—can result in total forfeiture of pension rights, with a possible return of accumulated deductions (without interest) depending on the offense. The section also prohibits retirement allowances based on intentionally concealed or misreported compensation.

Section 18 requires members and employees to file written statements and certified records when requested by the retirement board, and establishes an escalating enforcement mechanism—including suspension without compensation—for unreasonable delays. It imposes criminal penalties for knowingly making false statements or falsifying system records with intent to defraud, and requires actuarial correction of any benefit errors resulting from such wrongful acts.

Section 20C requires every retirement board member to file annual statements of financial interest with the Public Employee Retirement Administration Commission (PERAC), disclosing business associations, investments, debts, gifts, honoraria, and other financial relationships — particularly any involving persons with a direct interest in matters before the board. Filing is required within 30 days of joining a board, annually by May 1, and by May 1 of the year after leaving the board. Failure to file or correct a deficient statement within 30 days of written notice results in removal from the board, and the removed member is barred from future service on any retirement board under Chapter 32.

Section 21A authorizes PERAC to maintain a consolidated list of vendors debarred or suspended from contracting with any retirement board under Chapter 32. Debarment may be imposed for criminal convictions related to public contracting, antitrust violations, Chapter 268A ethics violations, or substantial evidence of fraud, performance failures, or undisclosed compensation. Suspensions are temporary, capped at 12 months unless related criminal proceedings are pending, and require advance written notice except in emergencies. Full debarment proceedings require a hearing opportunity and a written decision with findings; affiliates of a debarred or suspended vendor may be included in the exclusion.

Section 23B establishes a mandatory competitive sealed proposals process that every retirement board must follow when procuring investment, actuarial, legal, and accounting services. Key requirements include public notice posted for at least two weeks, written evaluation criteria, confidentiality of proposals until evaluations are complete, and mandatory contractual fiduciary and disclosure terms for investment service providers. Investment service contracts may not exceed seven years (including renewals). Board members must certify under penalty of perjury that procurements are free from collusion, and persons who cause contracts to be awarded in violation of the section forfeit up to $2,000 per violation plus double damages.

Section 24 provides PERAC with the primary enforcement mechanism for violations of Chapter 32. When PERAC determines that any governmental unit, officer, employee, or retirement board has violated or neglected Chapter 32 requirements, it must notify the appropriate executive authority and, if violations continue, refer the matter to the Attorney General. The Superior Court has equity jurisdiction to compel compliance and restrain violations. Willful refusal or neglect to comply with Chapter 32 or its regulations is punishable by a fine of up to $1,000 or up to one year imprisonment, or both.

Section 40 sets governance requirements for private pension associations formed under Section 39. By-laws must be approved by PERAC and must specify how the association is conducted and how funds are invested and disbursed. An association is formally established when its by-laws are approved by both the employer and a two-thirds vote of employees and by PERAC. The association must file an annual report with PERAC by March 1 covering membership and financial transactions from the prior year. PERAC may audit the association's books, and failure to comply with reporting requirements is punishable by a fine of up to $500.

Section 92 declares any pledge, mortgage, sale, assignment, or transfer of a public pension void (except for written health insurance premium deductions), imposes a fine of up to $100 on parties to such transactions, and requires that if a pensioner becomes a public charge, their maintenance costs be deducted from the pension.