HB 2381 Summary

• Adds a new provision to Hawaii's Employees' Retirement System (Chapter 88, HRS) allowing courts to decree forfeiture of retirement benefits for members, former members, or retirants convicted of employment-related felonies.

• Permits forfeiture of interest, hypothetical account balance above employee contributions, pensions, annuities, or retirement allowances, with the exception that designated beneficiaries may receive benefits upon the member's death if they were not convicted of a felony based on the same circumstances.

• Defines "employment-related felony" to include felonies using state or county time/equipment, bribery, embezzlement, theft of state or county property, or felonies committed against persons under the employee's custody or supervision.

• Requires the retirement system to comply with certified court orders decreeing forfeiture and suspend payments accordingly, but does not require the system to verify the order's propriety or recoup payments made prior to receiving the forfeiture order.

• Takes effect July 1, 2020, and does not apply to felonies committed before that date or to non-forfeitable accrued benefits under specified statutory sections.