Bill Text: HI SB2843 | 2016 | Regular Session | Introduced

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Bill Title: Employees' Retirement System; Retirement Benefits; Felony Convictions; Forfeiture

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-27 - Referred to JDL, WAM. [SB2843 Detail]

Download: Hawaii-2016-SB2843-Introduced.html

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THE SENATE	S.B. NO.	2843
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Chapter 88, Hawaii Revised Statutes, is amended by adding to subpart C of part II a new section 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, by a preponderance of the evidence, the felony is related to the employment of the member, former member, or retirant by the State or any county, the court may decree a civil penalty, pursuant to section 706-605(8), of 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 such beneficiary would otherwise be entitled under this chapter; provided further that the designated beneficiary was not also convicted of a felony based on the same set of circumstances as the member, former member, or retirant penalized under this section.

     (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, retirant, or designated beneficiary, if applicable, 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, retirant, or designated beneficiary; or

     (2)  Quash or reverse the decree of forfeiture.

     The system shall not be required to make inquiry into the propriety of the order decreeing forfeiture or recoup any payments made to the member, former member, retirant, or designated beneficiary prior to receipt by the system of the order decreeing 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 Act    , Session Laws of Hawaii 2016.  This section shall not apply to felonies committed prior to the effective date of Act    , Session Laws of Hawaii 2016.

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

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

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

 

Description:

Authorizes forfeiture of certain Employees' Retirement System benefits, pursuant to court order, for state or county employees and designated beneficiaries who are convicted of an employment-related felony.

 

 

 

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