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Even after Jamey Noel pleaded guilty last week to 27 felony charges as part of a massive, ongoing corruption case, the former Clark County Sheriff could still receive taxpayer-funded retirement benefits for his public service.
The prominent Hoosier Republican worked as a state trooper for more than 20 years before embarking on a campaign for county sheriff in 2014. Now 53, he was ultimately elected Clark County Sheriff twice and his second term ended in 2022.
Per Indiana law, Noel still qualifies to receive a pension based on his years employed by the state police, said Abhi Reddy, legislative counsel for Indiana’s Treasurer of State. A criminal conviction does not necessarily disqualify a trooper from receiving retirement benefits, according to state statute.
Uncertain, however, is whether those pension benefits will be subject to garnishment or forfeiture — “a decision that the courts have sole discretion to exercise,” Reddy said.
Pending official sentencing, Noel could be on the hook to pay back more than $3.1 million in public funds.
Separately, whether Noel will retain eligibility for benefits at the county level also remains in question.
In Indiana, sheriffs’ benefits are decided by local policy. Clark County’s police retirement plan, obtained by the Indiana Capital Chronicle, fully vests employees at “normal retirement age” — typically at 55 — who have completed eight years of service.
It’s up to the sitting sheriff and Clark County Sheriff’s Merit Board to decide otherwise.
Who qualifies for a pension?
Across the country, only 15 states have laws to revoke or garnish an employee’s pension benefit if he or she is convicted of a felony related to misconduct on the job, according to a 2020 analysis by the Reason Foundation, a Libertarian think tank. Of those, 13 relate specifically to police convictions.
Indiana Code stipulates that public employees’ pension benefits can be garnished following conviction of a misdemeanor or felony relating to an offense which causes their employer — the state — financial loss.
Pension garnishment intercepts a convicted elected official’s or public employee’s taxpayer-funded benefit to offset the cost of his or her incarceration, pay for restitution for bodily injury or loss of property, or to help pay settlements in a civil suit.
A forfeiture, on the other hand, entirely revokes any taxpayer-funded pension benefit the convicted member has earned through civil service.
But unlike for other Hoosier public servants, retirement benefits for Indiana State Police are not managed by the state’s public retirement system.
Rather, the State Police fund rules make clear that a member’s contributions or benefits, or both, “may be transferred to reimburse the person’s employer for loss resulting from the person’s criminal taking of the employer’s property by the trustee if the trustee receives adequate proof of the loss.”
Even so, Noel’s criminal charges stem from his employment in Clark County — not the state police.
Lingering questions
According to the retirement plan for the Clark County Sheriff’s Office, an individual whose employment is severed due to “dishonesty or misconduct” could be forced to “forfeit the benefit for which he would otherwise be eligible,” if decided by the sheriff and local merit board.
Noel, though, finished his term without incident. Six months later the new sheriff alerted the Indiana State Police to potential criminal activity.
Col. Mark Grube, assistant chief at the Clark County Sheriff’s Office, confirmed that employees are vested after eight years of service. Under “most circumstances,” sheriff’s office employees are able to collect benefits once they turn 55, though there is an option for early retirement with a penalty.
Noel has not yet turned 55, but he has achieved the minimum service requirement to qualify for a pension.
“There’s nothing in state law that governs (retirement) plans … and every county is going to be different,” said Stephen Luce, executive director for the Indiana Sheriffs Association.
Still, Luce noted that most counties have “bad boy” clauses that preclude sheriffs from receiving retirement benefits after a criminal conviction.
Those safeguards prevent sheriffs from “getting those checks cashed” — even if they’ve met service requirements and are already vested.
“They control everything locally,” Luce added. “For there to be any physical changes to the plan, it has to be an agreement between the sheriff’s pension board, mayor and the county council — so nobody can change one thing without the other.”
It’s unclear what actions, if any, could be taken by Clark County officials.
Pending plea agreement
Noel is currently being held in the Scott County Jail and faces years behind bars. As of Tuesday, the judge assigned to the case hadn’t yet accepted Noel’s guilty plea nor had a sentencing hearing been scheduled.
Last week, Noel pleaded guilty to 27 of 31 felony charges after he allegedly misused money from the fire and EMS departments which he oversaw.
A plea agreement submitted to the Clark County Circuit Court shows Noel agreed to plead guilty to charges of theft, money laundering, corrupt business influence, official misconduct, obstruction of justice and tax evasion.
Additionally included in the plea deal is an agreement for Noel to pay back more than $3.1 million in public funds: $2,870,924 to the Utica Volunteer Firefighters Association; $61,190 to the Clark County Sheriff’s Department; $173,155 to the Indiana Department of Revenue; and $35,245 to the Indiana State Police.
Noel faces a 15-year prison sentence but with three of those years suspended to probation if the deal is approved by the judge. He ultimately could serve as little as six years with good time credit.
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