HI SB2402

Courts may order forfeiture of up to one-half of Employees' Retirement System benefits for members, former members, or retirants convicted of a felony related to their employment with the State or any county.

Forfeitable benefits include interest, hypothetical account balance (exceeding employee contributions), pension, annuity, and retirement allowance.

A felony is "related to employment" if the employee used their official position to commit it, including felonies involving state/county time or equipment, bribery, embezzlement, theft of state/county property, or felonies against persons in the employee's custody or supervision.

Upon the convicted employee's death, designated beneficiaries may receive one-half of the benefits they would otherwise be entitled to receive.

The Employees' Retirement System must comply with certified court orders reducing, suspending, or denying payments to the convicted employee, and is not required to recoup payments made prior to receiving the forfeiture order.