REPORT TITLE:
ERS


DESCRIPTION:
Provides Deputy Sheriffs with the Same Retirement Benefits as
Police Officers and Firefighters.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1416        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
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:

 1      SECTION 1.  Section 88-21, Hawaii Revised Statutes, is
 
 2 amended by adding a new definition to be appropriately inserted
 
 3 and to read as follows:
 
 4      ""Deputy sheriff":  any regularly employed member of the
 
 5 department of public safety whose principal duty is to perform
 
 6 the duties specified in section 26-14.6(f)."
 
 7      SECTION 2.  Section 88-45, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "88-45  Employee contributions.  After June 30, 1988, each
 
10 class A and class B member shall contribute seven and eight-
 
11 tenths per cent of the member's compensation to the annuity
 
12 savings fund; provided that after June 30, 1989, all
 
13 firefighters, police officers, corrections officers,
 
14 investigators of the departments of the prosecuting attorney and
 
15 of the attorney general, narcotics enforcement investigators,
 
16 water safety officers not making the election under section
 
17 88-271, deputy sheriffs of the department of public safety, and
 
18 public safety investigations staff investigators shall contribute
 
19 twelve and two-tenths per cent of their compensation to the
 
20 annuity savings fund for service in that capacity." 
 

 
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 1      SECTION 3.  Section 88-47, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  There shall be three classes of members in the system
 
 4 to be known as class A, class B, and class C, defined as follows:
 
 5      (1)  Class A shall consist of members covered by section
 
 6           88-74(3), those members whose salaries are set forth in
 
 7           sections 26-52 and 26-53, and their county
 
 8           counterparts, managing directors or administrative
 
 9           assistant to the mayor, and other department heads,
 
10           including agency heads appointed by the mayor, first
 
11           deputies appointed by the county attorney and
 
12           prosecuting attorney, the county clerk and deputy
 
13           county clerk of each county, the administrative
 
14           director of the courts, the deputy administrative
 
15           director of the courts, the executive director of the
 
16           labor and industrial relations appeals board, the
 
17           executive director of the Hawaii labor relations board,
 
18           investigators of the department of the attorney
 
19           general, narcotics enforcement investigators, water
 
20           safety officers not making the election under section
 
21           88-271, public safety investigations staff
 
22           investigators, deputy sheriffs of the department of
 
23           public safety, and those members in service prior to
 

 
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 1           July 1, 1984, including those who are on approved leave
 
 2           of absence, who are covered by Title II of the Social
 
 3           Security Act on account of service creditable under
 
 4           this part.  This class shall consist of:
 
 5           (A)  All employees who enter membership after June 30,
 
 6                1957, except employees in positions to which
 
 7                coverage under Title II of the Social Security Act
 
 8                is not extended;
 
 9           (B)  All employees who were members on July 1, 1957,
 
10                who elected to be covered by the Social Security
 
11                Act; and
 
12           (C)  All former class A retirants who return to
 
13                employment after June 30, 1984, requiring the
 
14                retirant's active membership;
 
15      (2)  Class B shall consist of all members who are not class
 
16           A or class C members; and
 
17      (3)  Except for members described in section 88-47(a)(1),
 
18           class C shall consist of all employees in positions
 
19           covered by Title II of the Social Security Act who:
 
20           (A)  First enter service after June 30, 1984;
 
21           (B)  Reenter service after June 30, 1984, without
 
22                vested benefit status as provided in section
 
23                88-96(b);
 

 
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 1           (C)  Make the election to become a class C member as
 
 2                provided in part VII; or
 
 3           (D)  Are former class C retirants who return to service
 
 4                requiring the retirant's active membership."
 
 5      SECTION 4.  Section 88-74, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "88-74  Allowance on service retirement.  Upon retirement
 
 8 from service, a member shall receive a retirement allowance as
 
 9 follows:
 
10      (1)  If the member has attained age fifty-five, a retirement
 
11           allowance of two per cent of the member's average final
 
12           compensation multiplied by the total number of years of
 
13           the member's credited service as a class A and B
 
14           member, excluding any credited service as an elective
 
15           officer or legislative officer, plus a retirement
 
16           allowance of one and one-fourth per cent of the
 
17           member's average final compensation multiplied by the
 
18           total number of years of prior credited service as a
 
19           class C member; provided that:
 
20           (A)  After June 30, 1968, if the member has at least
 
21                ten years of credited service of which the last
 
22                five or more years prior to retirement is credited
 
23                service as a firefighter, police officer, or an
 

 
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 1                investigator of the department of the prosecuting
 
 2                attorney;
 
 3           (B)  After June 30, 1977, if the member has at least
 
 4                ten years of credited service of which the last
 
 5                five or more years prior to retirement is credited
 
 6                service as a corrections officer;
 
 7           (C)  After June 16, 1981, if the member has at least
 
 8                ten years of credited service of which the last
 
 9                five or more years prior to retirement is credited
 
10                service as an investigator of the department of
 
11                the attorney general;
 
12           (D)  After June 30, 1989, if the member has at least
 
13                ten years of credited service of which the last
 
14                five or more years prior to retirement is credited
 
15                service as a narcotics enforcement investigator; 
 
16           (E)  After June 30, 1992, if the member has at least
 
17                ten years of credited service, a part of which is
 
18                credited as a corrections officer or narcotics
 
19                enforcement investigator; provided the member is
 
20                employed with the department of public safety, is
 
21                promoted or accepts a position as a public safety
 
22                investigations staff investigator, and retires
 
23                from that department;
 

 
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 1         [(E)] (F)  After December 31, 1993, if the member has at
 
 2               least ten years of credited service of which the
 
 3               last five or more years prior to retirement is
 
 4               credited service as a water safety officer; [and]
 
 5         [(F)] (G)  After June 30, 1994, if the member has at
 
 6               least ten years of credited service, of which the
 
 7               last five or more years prior to retirement are
 
 8               credited service as a public safety investigative
 
 9               staff investigator; and
 
10          (H)  After June 30, 1999, if the member has at least ten
 
11               years of credited service of which the last five or
 
12               more years prior to retirement is credited service
 
13               as a deputy sheriff of the department of public
 
14               safety;
 
15           then for each year of service as a firefighter, police
 
16           officer, corrections officer, investigator of the
 
17           department of the prosecuting attorney, investigator of
 
18           the department of the attorney general, narcotics
 
19           enforcement investigator, water safety officer, deputy
 
20           sheriff of the department of public safety, or public
 
21           safety investigations staff investigator, the
 
22           retirement allowance shall be two and one-half per cent
 
23           of the member's average final compensation.  The
 

 
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 1           maximum retirement allowance for those members shall
 
 2           not exceed eighty per cent of the member's average
 
 3           final compensation.  If the member has not attained age
 
 4           fifty-five, the member's retirement allowance shall be
 
 5           computed as though the member had attained age fifty-
 
 6           five, reduced in accordance with factors of actuarial
 
 7           equivalence adopted by the board upon the advice of the
 
 8           actuary; provided that no reduction shall be made if
 
 9           the member has at least twenty-five years of credited
 
10           service as a firefighter, police officer, corrections
 
11           officer, investigator of the department of the
 
12           prosecuting attorney, investigator of the department of
 
13           the attorney general, narcotics enforcement
 
14           investigator, public safety investigations staff
 
15           investigator, sewer worker, deputy sheriff of the
 
16           department of public safety, or water safety officer,
 
17           of which the last five or more years prior to
 
18           retirement is credited service in such capacities;
 
19      (2)  If the member has made voluntary additional
 
20           contributions for the purchase of an additional annuity
 
21           and has not applied for a refund as permitted by
 
22           section 88-72, the member may accept the refund at the
 
23           time of retirement or, in lieu thereof, receive in
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           addition to the retirement allowance provided in
 
 2           paragraph (1), an annuity that is the actuarial
 
 3           equivalent of the additional contributions with regular
 
 4           interest;
 
 5      (3)  If the member has credited service as a judge, the
 
 6           member's retirement allowance shall be computed on the
 
 7           following basis:
 
 8           (A)  Irrespective of age, for each year of credited
 
 9                service as a judge, three and one-half per cent of
 
10                the member's average final compensation in
 
11                addition to an annuity that is the actuarial
 
12                equivalent of the member's accumulated
 
13                contributions allocable to the period of such
 
14                service; and
 
15           (B)  For all other credited service, as provided in
 
16                paragraphs (1), (2) and (4).  No allowance shall
 
17                exceed seventy-five per cent of the member's
 
18                average final compensation.  If the allowance
 
19                exceeds this limit, it shall be adjusted by
 
20                reducing the annuity included in subparagraph (A),
 
21                and the portion of the accumulated contributions
 
22                specified in that subparagraph in excess of the
 
23                requirements of the reduced annuity shall be
 
24                returned to the member.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           The allowance for judges under this paragraph, together
 
 2           with the retirement allowance provided by the federal
 
 3           government for similar service, shall in no case exceed
 
 4           seventy-five per cent of the member's average final
 
 5           compensation; or
 
 6      (4)  If the member has credited service as an elective
 
 7           officer or as a legislative officer, the member's
 
 8           retirement allowance shall be derived by adding the
 
 9           allowances computed separately under subparagraphs (A),
 
10           (B), (C), and (D) as follows:
 
11           (A)  Irrespective of age, for each year of credited
 
12                service as an elective officer, three and one-half
 
13                per cent of the member's average final
 
14                compensation as computed under section
 
15                88-81(d)(1), in addition to an annuity that is the
 
16                actuarial equivalent of the member's accumulated
 
17                contributions allocable to the period of service;
 
18                and
 
19           (B)  Irrespective of age, for each year of credited
 
20                service as a legislative officer, three and one-
 
21                half per cent of the member's average final
 
22                compensation as computed under section
 
23                88-81(d)(2), in addition to an annuity that is the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                actuarial equivalent of the member's accumulated
 
 2                contributions allocable to the period of service;
 
 3           (C)  Irrespective of age, for each year of credited
 
 4                service as a judge, three and one-half per cent of
 
 5                the member's average final compensation as
 
 6                computed under section 88-81(d)(3), in addition to
 
 7                an annuity that is the actuarial equivalent of the
 
 8                member's accumulated contributions allocable to
 
 9                the period of service; and
 
10           (D)  For each year of credited service not included in
 
11                subparagraph (A), (B), or (C), the average final
 
12                compensation as computed under section 88-81(d)(4)
 
13                shall be multiplied by two per cent, two and one-
 
14                half per cent, or one and one-quarter per cent, as
 
15                applicable to the credited service earned as a
 
16                class A, B, or C member, respectively.
 
17           The total retirement allowance shall not exceed
 
18           seventy-five per cent of the member's highest average
 
19           final compensation calculated under section
 
20           88-81(d)(1), (2), (3), or (4).  If the allowance
 
21           exceeds this limit, it shall be adjusted by reducing
 
22           any annuity accrued under subparagraphs (A), (B), and
 
23           (C) and the portion of the accumulated contributions
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           specified in these subparagraphs in excess of the
 
 2           requirements of the reduced annuity shall be returned
 
 3           to the member.  If a member has service credit as an
 
 4           elective officer or as a legislative officer in
 
 5           addition to service credit as a judge, then the
 
 6           retirement benefit calculation contained in this
 
 7           paragraph shall supersede the formula contained in
 
 8           paragraph (3)."
 
 9      SECTION 5.  (a)  Deputy sheriffs of the department of public
 
10 safety who are in service prior to the effective date of this Act
 
11 and who are class C members shall have the option of remaining in
 
12 class C or converting their membership service to class A.  An
 
13 election form indicating the option selected shall be filed with
 
14 the board of trustees by June 1, 1999, and those members electing
 
15 to convert to class A shall arrange for additional deductions or
 
16 lump sum payments pursuant to sections 88-45 and 88-59, Hawaii
 
17 Revised Statutes, to commence by July 1, 1999.  The election
 
18 filed with the board of trustees shall be irrevocable.
 
19      (b)  All deputy sheriffs of the department of public safety
 
20 hired after the effective date of this Act shall be designated
 
21 class C members of the employees' retirement system.
 
22      SECTION 6.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 7.  This Act shall take effect upon its approval.
 
 2 
 
 3                           INTRODUCED BY:  _______________________