HI HB1370

Authorizes the Employees' Retirement System to make direct payments to spouses or former spouses of members/retirants when awarded benefits in a divorce proceeding through a Hawaii domestic relations order.

Establishes requirements for valid Hawaii domestic relations orders, including specification of member/retirant name, alternate payee address, benefit amount or percentage, payment period, and system applicability.

Prohibits orders from requiring designation of beneficiaries, selecting benefit payment plans, making liens, awarding non-existent benefit types, or requiring increased benefits determined by actuarial value.

Requires the system to review domestic relations orders for compliance with statutory requirements; establishes an 18-month period during which benefits may be held pending determination of order validity, with full benefits returned to member if order is ultimately invalid.

Implements separate interest approach for awards made before member retirement and shared payment approach for awards after retirement, effective July 1, 2018.