Bill Text: HI SB496 | 2020 | Regular Session | Introduced

Bill Title: Relating To The Employees' Retirement System.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2019-12-01 - Carried over to 2020 Regular Session. [SB496 Detail]

Download: Hawaii-2020-SB496-Introduced.html


S.B. NO.














relating to the employees' retirement system.





     SECTION 1.  Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:

     "§88-    Forfeiture of benefits; felony convictions.  (a)  If a member, former member, or retirant is convicted of a felony and the court finds that the felony is related to the employment of the member, former member, or retirant by the State or any county, the court may order, as a civil penalty pursuant to section 706-605(8), a forfeiture by the member, former member, or retirant of all or a portion of any:

     (1)  Interest;

     (2)  Hypothetical account balance in excess of the amount representing any employee contributions made by or on behalf of the member, former member, or retirant;

     (3)  Pension;

     (4)  Annuity; or

     (5)  Retirement allowance,

to which the member, former member, or retirant may otherwise be entitled under this chapter; provided that upon the death of the member, former member, or retirant, the designated beneficiary of the member, former member, or retirant may receive benefits to which the beneficiary would otherwise be entitled under this chapter.

     (b)  Upon receipt of a certified copy of the order decreeing forfeiture, the system shall comply with the order and shall reduce, suspend, or deny payment to the member, former member, or retirant as provided in the order until such time as the system receives a certified order to:

     (1)  Increase, resume, or make payments to the member, former member, or retirant; or

     (2)  Quash or reverse the order of forfeiture.

The system shall not be required to make inquiry into the propriety of the order of forfeiture or recoup any payments made to the member, former member, or retirant prior to receipt by the system of the order of forfeiture.

     (c)  For the purposes of this section, a felony is "related to the employment" of an employee of the State or a county if the employee uses or attempts to use the employee's official position to commit the felony, including:

     (1)  Felonies in which state or county time, equipment, or other facilities are used in the commission of the felony;

     (2)  Bribery;

     (3)  Embezzlement, theft, or other unlawful taking, receiving, retaining, or failing to account properly for any property or funds that belong to the State or any county or any department, bureau, board, or other agency thereof; or

     (4)  A felony committed against a person over whom the employee, in the course of the employee's duties, exercises custody or supervision.

     (d)  This section shall not impair or diminish benefits accrued prior to the effective date of this section.

     (e)  This section shall not apply to accrued retirement benefits that are nonforfeitable pursuant to sections 88-73(f), 88-281(g), and 88-331(f)."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.








Report Title:

Employees' Retirement System; Retirement Benefits; Felony Convictions; Forfeiture



Authorizes a court to order the forfeiture of Employees' Retirement System benefits of an ERS member, former member, or retirant upon conviction of the individual for a felony related to the State or county employment of the individual.  Authorizes designated beneficiaries to receive ERS benefits upon the death of the ERS member, former member, or retirant convicted of the felony.




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