Bill Text: HI HB628 | 2020 | Regular Session | Introduced


Bill Title: Relating To The Employees' Retirement System.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [HB628 Detail]

Download: Hawaii-2020-HB628-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

628

THIRTIETH LEGISLATURE, 2019

 

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.  Section 88-74, Hawaii Revised Statutes, is amended to read as follows:

     "§88-74  Allowance on service retirement.  (a)  Upon retirement from service, a member shall receive a maximum retirement allowance as provided in this section.

     (b)  If a member, who became a member before July 1, 2012, has attained age fifty-five, the member's maximum retirement allowance shall be two per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of two per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:

     (1)  After June 30, 1968, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;

     (2)  After June 30, 1977, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer;

     (3)  After June 16, 1981, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general;

     (4)  After June 30, 1989, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator;

     (5)  After December 31, 1993, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a water safety officer;

     (6)  After June 30, 1994, if the member has at least ten years of credited service, of which the last five or more years prior to retirement are credited service as a public safety investigations staff investigator;

     (7)  After June 30, 2002, if the member:

          (A)  Has at least ten years of credited service as a firefighter;

          (B)  Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and

          (C)  Continues employment in a class A or B position other than a firefighter; and

     (8)  After June 30, 2004, if the member:

          (A)  Has at least ten years of credited service as a police officer;

          (B)  Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and

          (C)  Continues employment in a class A or B position other than a police officer;

then for each year of service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, water safety officer, or public safety investigations staff investigator, the retirement allowance shall be two and one-half per cent of the member's average final compensation.  The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation.  If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e).

     (c)  If a member, who became a member prior to July 1, 2012, has credited service as a judge, the member's retirement allowance shall be computed on the following basis:

     (1)  For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (2)  For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e);

     (3)  For a member who first earned credited service as a judge after June 30, 2012, for each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i);

     (4)  For a judge with other credited service, as provided in subsection (b).  If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e); or

     (5)  For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (d).

No allowance shall exceed seventy-five per cent of the member's average final compensation.  If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in paragraphs (1), (2), and (3) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay.  The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation.

     (d)  If a member, who became a member before July 1, 2012, has credited service as an elective officer or as a legislative officer, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), (4), (5), and (6) as follows:

     (1)  For a member who has credited service as an elective officer before July 1, 2012, irrespective of age, for each year of credited service as an elective officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (2)  For a member, who first earned credited service as an elective officer after June 30, 2012, irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (3)  For a member who has credited service as a legislative officer before July 1, 2012, irrespective of age, for each year of credited service as a legislative officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (4)  For a member who first earned credited service as a legislative officer after June 30, 2012, irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (5)  If the member has credited service as a judge, the member's retirement allowance shall be computed on the following basis:

          (A)  For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

          (B)  For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, and has attained the age of fifty-five, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e); and

          (C)  For a member who first earned credited service as a judge after June 30, 2012, and has attained the age of sixty, for each year of credited service as a judge, three per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and

     (6)  For each year of credited service not included in paragraph (1), (2), (3), (4), or (5), the average final compensation as computed under section 88-81(e)(4) shall be multiplied by two per cent for credited service earned as a class A or class H member, two and one-half per cent for credited service earned as a class B member, and one and one-quarter per cent for credited service earned as a class C member.  If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e).

The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(e)(1), (2), (3), or (4).  If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), (3), (4), and (5) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay.  If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (c).

     (e)  Except as provided in subsections (b), (c), and (d), if a member, who became a member before July 1, 2012, has not attained age fifty-five at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age fifty-five, as follows:

     (1)  0.4166 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus

     (2)  0.3333 per cent for each month below age fifty and above age forty-four and eleven months; plus

     (3)  0.2500 per cent for each month below age forty-five and above age thirty-nine and eleven months; plus

     (4)  0.1666 per cent for each month below age forty;

provided that no reduction shall be made if the member has at least twenty-five years of credited service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, public safety investigations staff investigator, sewer worker, or water safety officer, of which the last five or more years prior to retirement is credited service in these  capacities.

     (f)  If a member, who becomes a member after June 30, 2012, but before January 1, 2020, has attained age sixty, the member's maximum retirement allowance shall be one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:

     (1)  If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;

     (2)  If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer;

     (3)  If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general;

     (4)  If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator;

     (5)  If the member has at least ten years of credited service, of which the last five or more years prior to retirement is credited service as a public safety investigations staff investigator;

     (6)  If the member:

          (A)  Has at least ten years of credited service as a firefighter;

          (B)  Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and

          (C)  Continues employment in a class A or class B position other than a firefighter; and

     (7)  If the member:

          (A)  Has at least ten years of credited service as a police officer;

          (B)  Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and

          (C)  Continues employment in a class A or class B position other than a police officer,

then for each year of service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, or public safety investigations staff investigator, the retirement allowance shall be two and one-fourth per cent of the member's average final compensation.  The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i).

     (g)  If a member, who becomes a member after June 30, 2012, but before January 1, 2020, has credited service as a judge, the member's retirement allowance shall be computed on the following basis:

     (1)  For each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i);

     (2)  For a judge with other credited service, as provided in subsection (f).  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and

     (3)  For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (h).

No allowance shall exceed seventy-five per cent of the member's average final compensation.  If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraph (1) and the portion of the accumulated contributions specified in paragraph (1) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay.  The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation.

     (h)  If a member, who becomes a member after June 30, 2012, but before January 1, 2020, has credited service as an elective officer or as a legislative officer, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), and (4) as follows:

     (1)  Irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(f)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (2)  Irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(f)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (3)  For each year of credited service as a judge, three per cent of the member's average final compensation as computed under section 88‑81(f)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and

     (4)  For each year of credited service not included in paragraph (1), (2), or (3), the average final compensation as computed under section 88-81(f)(4) shall be multiplied by one and three-fourth per cent for credited service earned as a class A or class H member, two and one-fourth per cent for credited service earned as a class B member, and one and one‑fourth per cent for credited service earned as a class C member.  If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i).

The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(f)(1), (2), (3), or (4).  If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay.  If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (g).

     (i)  Except as provided in subsections (f), (g), and (h), if a member, who becomes a member after June 30, 2012, but before January 1, 2020, has not attained age sixty at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age sixty, as follows:

     (1)  0.4166 per cent for each month below age sixty and above age fifty-four and eleven months; plus

     (2)  0.3333 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus

     (3)  0.2500 per cent for each month below age fifty and above age forty-four and eleven months; plus

     (4)  0.1666 per cent for each month below age forty-five;

provided that no reduction shall be made if the member has attained the age of fifty-five and has at least twenty-five years of credited service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, public safety investigations staff investigator, sewer worker, water safety officer, or emergency medical technician, of which the last five or more years prior to retirement is credited service in these capacities.

     (j)  For a member who first becomes a member after December 31, 2019, and who qualifies for a retirement allowance pursuant to subsection (f), (g), (h), or (i), as applicable, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 2.  Section 88-76, Hawaii Revised Statutes, is amended to read as follows:

     "§88-76  Allowance on ordinary disability retirement.  [Upon] (a)  Subject to subsection (b), upon retirement for ordinary disability, a member shall receive a maximum retirement allowance of one and three-fourths per cent of the member's average final compensation for each year of credited service; except that for each year of credited service as a judge, an elective officer, or a legislative officer, the member shall receive a maximum retirement allowance computed as provided in section 88-74(c), (d), (g), or (h), as applicable.  The minimum retirement allowance payable under this section shall be thirty per cent of the member's average final compensation.

     (b)  For a member who first becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 3.  Section 88-80, Hawaii Revised Statutes, is amended to read as follows:

     "§88-80  Allowance on retirement for service-connected disability.  [Upon] (a)  Subject to subsection (b), upon retirement for service-connected disability, a member shall receive the amount of the member's accumulated contributions and a maximum retirement allowance that shall consist of fifty per cent of the member's average final compensation.

     (b)  For a member who first becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 4.  Section 88-282, Hawaii Revised Statutes, is amended to read as follows:

     "§88-282  Service retirement allowance.  (a)  Upon retirement from service, and subject to subsection (b), a member shall receive a retirement allowance as follows:

     (1)  If the member has met the requirements in section 88-281(a), (b), (d), or (e), a maximum retirement allowance of one and one-fourth per cent of the average final compensation multiplied by the number of years of credited service; or

     (2)  If the member has met the requirements in section 88-281(c), an early retirement allowance equal to the maximum retirement allowance reduced by one-half per cent for each month the member is less than age sixty-two at retirement.

     (b)  For a member who first becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 5.  Section 88-284, Hawaii Revised Statutes, is amended to read as follows:

     "§88-284  Ordinary disability retirement.  (a)  Under rules the board of trustees may adopt, upon application of a member in service or on leave without pay, or the person appointed by the family court as guardian of an incapacitated member, any member who has ten or more years of credited service shall be retired by the system on an ordinary disability retirement allowance if the medical board or other entity designated by the board of trustees, after a medical examination of the member, certifies that:

     (1)  The member is mentally or physically incapacitated for the further performance of duty at the time of application;

     (2)  The incapacity is likely to be permanent; and

     (3)  The member should be retired.

     (b)  Upon approval by the system, the member shall be eligible to receive an ordinary disability retirement benefit no earlier than thirty days from the date the application was filed or the date the member terminated service, whichever is later.  Retirement shall be effective on the first day of a month, except for the month of December when retirement on the first or last day of the month shall be allowed.  A member whose application for an ordinary disability retirement allowance is approved by the system while the member is still in service may terminate service and retire at any time following the approval; provided that retirement shall become effective on the first day of the month following the month the applicant terminates employment or goes off the payroll, except for the month of December when retirement on the first or last day of the month shall be allowed.

     (c)  [A] Subject to subsection (d), a member who is determined to be permanently incapacitated for the further performance of duty pursuant to subsection (a) and eligible to receive an ordinary disability retirement allowance shall receive a maximum retirement allowance of one and one-fourth per cent of the average final compensation multiplied by the number of years of credited service unreduced for age.

     (d)  For a member who first becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 6.  Section 88-285, Hawaii Revised Statutes, is amended to read as follows:

     "§88-285  Service-connected disability retirement.  [A] (a)  Subject to subsection (b), a member who would be eligible to receive a service-connected disability retirement allowance pursuant to section 88-79 shall receive a maximum retirement allowance of thirty-five per cent of the member's average final compensation.

     (b)  For a member who first becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 7.  Section 88-332, Hawaii Revised Statutes, is amended to read as follows:

     "§88-332  Service retirement allowance.  (a)  Upon retirement from service, a class H member who became a member before July 1, 2012, shall receive a maximum retirement allowance as follows:

     (1)  If the member has met the requirements in section 88-331(a), (b), or (d), a maximum retirement allowance of two per cent of the average final compensation multiplied by the number of years of class H credited service, plus a retirement allowance at the rate of one and one-fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service; or

     (2)  If the member has met the requirements in section 88-331(c), an early retirement allowance equal to the maximum retirement allowance calculated as provided in paragraph (1), reduced by 0.4166 per cent for each month the member is less than age sixty-two at retirement.

     (b)  Upon retirement from service, a class H member who becomes a member after June 30, 2012, but before January 1, 2020, shall receive a maximum retirement allowance as follows:

     (1)  If the member has met the requirements in section 88‑331(a), (b), or (d), a maximum retirement allowance of one and three-fourths per cent of the average final compensation multiplied by the number of years of class H credited service, plus a retirement allowance at the rate of one and one‑fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service; or

     (2)  If the member has met the requirements in section 88‑331(c), an early retirement allowance equal to the maximum retirement allowance calculated as provided in paragraph (1), reduced by 0.4166 per cent for each month the member is less than age sixty-five at retirement.

     (c)  Upon retirement from service, a class H member who first becomes a member after December 31, 2019, shall receive a maximum retirement allowance as follows:

     (1)  If the member has met the requirements in section 88‑331(a), (b), or (d), a maximum retirement allowance of one and three-fourths per cent of the average final compensation multiplied by the number of years of class H credited service, plus a retirement allowance at the rate of one and one‑fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service; or

     (2)  If the member has met the requirements in section 88‑331(c), an early retirement allowance equal to the maximum retirement allowance calculated as provided in paragraph (1), reduced by 0.4166 per cent for each month the member is less than age sixty-five at retirement;

provided that the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 8.  Section 88-335, Hawaii Revised Statutes, is amended to read as follows:

     "§88-335  Ordinary disability retirement allowance.  (a)  Upon retirement for ordinary disability, a class H member who became a member before July 1, 2012, shall receive a maximum retirement allowance equal to the higher of either:

     (1)  Two per cent of the average final compensation multiplied by the number of years of class H credited service unreduced for age, plus one and one-fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service unreduced for age; or

     (2)  Twenty-five per cent of the member's average final compensation.

     (b)  Upon retirement for ordinary disability, a class H member who becomes a member after June 30, 2012, but before January 1, 2020, shall receive a maximum retirement allowance equal to the higher of either:

     (1)  One and three-fourths per cent of the average final compensation multiplied by the number of years of class H credited service unreduced for age, plus one and one-fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service unreduced for age; or

     (2)  Twenty-five per cent of the member's average final compensation.

     (c)  Upon retirement for ordinary disability, a class H member who first becomes a member after December 31, 2019, shall receive a maximum retirement allowance equal to the higher of either:

     (1)  One and three-fourths per cent of the average final compensation multiplied by the number of years of class H credited service unreduced for age, plus one and one-fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service unreduced for age; or

     (2)  Twenty-five per cent of the member's average final compensation;

provided that the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 9.  Section 88-337, Hawaii Revised Statutes, is amended to read as follows:

     "§88-337  Service-connected disability retirement allowance.  [Upon] (a)  Subject to subsection (b), upon retirement for service-connected disability, a class H member shall receive the amount of the member's accumulated contributions and a maximum retirement allowance of thirty-five per cent of the member's average final compensation.

     (b)  For a member who becomes a member after December 31, 2019, the maximum annual retirement allowance, as adjusted pursuant to section 88-90, shall not exceed seventy-five per cent of the annual salary of the governor, as last recommended by the executive salary commission, at the time of the member's retirement."

     SECTION 10.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 11.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 12.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

ERS; Retirement Allowance; Governor

 

Description:

Subjects the service retirement allowance, ordinary disability retirement allowance, and service-connected disability retirement allowance, as adjusted by any post retirement allowances, of employees who become contributory, non-contributory, and hybrid plan members in ERS after 12/31/2019, to a maximum amount of 75% of the governor's salary as last recommended by the executive salary commission at the time of the member's retirement.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

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