The board may compromise or settle any claim for benefits under this chapter; provided that, if the compromise or settlement would result in a person receiving benefits that the person would not otherwise, as a matter of law, be entitled to receive, the compromise or settlement shall be subject to the approval of the attorney general and may be made only if:

(1) The settlement or compromise relates to or arises out of a representation made to a member concerning the member’s eligibility for benefits under this chapter;
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Terms Used In Hawaii Revised Statutes 88-106.5

  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) The representation:

(A) Was made in writing by an employee of the system with authority to make representations on behalf of the system as to amounts of and eligibility for benefits under this chapter; and
(B) Was erroneous as to the amount or class of credited service to which the member was entitled;
(3) The member, in good faith and reasonable reliance on the representation, retired or terminated the member’s status as an employee or the member’s membership in the system; and
(4) The settlement or compromise will prevent manifest injustice.

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