HI SB1038

Authorizes courts to order forfeiture of all or part of Employees' Retirement System benefits (including interest, pensions, annuities, and retirement allowances) for members convicted of felonies related to their state or county employment.

Defines employment-related felonies to include crimes using official position, crimes involving state/county time or equipment, bribery, embezzlement or theft of public property, and felonies against persons in the employee's custody or supervision.

Requires the retirement system to comply with court forfeiture orders and reduce, suspend, or deny payments accordingly upon receipt of a certified order.

Allows designated beneficiaries to receive benefits after the convicted member's death despite any forfeiture order.

Applies only to members hired or rehired after the effective date and does not affect accrued nonforfeitable benefits or benefits accrued prior to the law's effective date of July 1, 2030.