Corrupt former Labor minister Ian Macdonald faces repaying a debt to NSW taxpayers potentially worth hundreds of thousands of dollars under a move to strip him of his parliamentary pension via legislation announced by Premier Gladys Berejiklian.

The legislation, unveiled on Tuesday, also threatens corrupt former minister Eddie Obeid with loss of his parliamentary pension under which he has been paid more than $120,000 a year since he quit politics in 2011.

The move comes just over five months after Obeid was sentenced to a maximum of five years in jail for misconduct in public office and days before Macdonald faces a sentencing hearing on Friday after being convicted of the same offence in March.

However, the government will not be able to move against Obeid and Macdonald's pension for up to 12 months after their convictions - the period within which the legislation says they can head off the action with a successful appeal.