REPORT TITLE:
ERS


DESCRIPTION:
Provides deputy sheriffs with the same retirement benefits as
police officers and firefighters. (HB1416 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1416
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
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." 
 

 
Page 2                                                     1416
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 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
 

 
Page 3                                                     1416
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 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           paragraph 1, class C shall consist of all employees in
 
19           positions covered by Title II of the Social Security
 
20           Act who:
 
21           (A)  First enter service after June 30, 1984;
 
22           (B)  Reenter service after June 30, 1984, without
 
23                vested benefit status as provided in section
 
24                88-96(b);
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 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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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 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 December 31, 1993, if the member has at
 
17                least ten years of credited service of which the
 
18                last five or more years prior to retirement is
 
19                credited service as a water safety officer; [and]
 
20           (F)  After June 30, 1994, if the member has at least
 
21                ten years of credited service, of which the last
 
22                five or more years prior to retirement are
 
23                credited service as a public safety
 
24                [investigative] investigations staff investigator;
 
25                and
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           (G)  After June 30, 1999, if the member has at least
 
 2                ten years of credited service of which the last
 
 3                five or more years prior to retirement is credited
 
 4                service as a deputy sheriff of the department of
 
 5                public safety;
 
 6           then for each year of service as a firefighter, police
 
 7           officer, corrections officer, investigator of the
 
 8           department of the prosecuting attorney, investigator of
 
 9           the department of the attorney general, narcotics
 
10           enforcement investigator, water safety officer, deputy
 
11           sheriff of the department of public safety, or public
 
12           safety investigations staff investigator, the
 
13           retirement allowance shall be two and one-half per cent
 
14           of the member's average final compensation.  The
 
15           maximum retirement allowance for those members shall
 
16           not exceed eighty per cent of the member's average
 
17           final compensation.  If the member has not attained age
 
18           fifty-five, the member's retirement allowance shall be
 
19           computed as though the member had attained age fifty-
 
20           five, reduced in accordance with factors of actuarial
 
21           equivalence adopted by the board upon the advice of the
 
22           actuary; provided that no reduction shall be made if
 
23           the member has at least twenty-five years of credited
 

 
Page 7                                                     1416
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           service as a firefighter, police officer, corrections
 
 2           officer, investigator of the department of the
 
 3           prosecuting attorney, investigator of the department of
 
 4           the attorney general, narcotics enforcement
 
 5           investigator, public safety investigations staff
 
 6           investigator, sewer worker, deputy sheriff of the
 
 7           department of public safety, or water safety officer,
 
 8           of which the last five or more years prior to
 
 9           retirement is credited service in such capacities;
 
10      (2)  If the member has made voluntary additional
 
11           contributions for the purchase of an additional annuity
 
12           and has not applied for a refund as permitted by
 
13           section 88-72, the member may accept the refund at the
 
14           time of retirement or, in lieu thereof, receive in
 
15           addition to the retirement allowance provided in
 
16           paragraph (1), an annuity that is the actuarial
 
17           equivalent of the additional contributions with regular
 
18           interest;
 
19      (3)  If the member has credited service as a judge, the
 
20           member's retirement allowance shall be computed on the
 
21           following basis:
 
22           (A)  Irrespective of age, for each year of credited
 
23                service as a judge, three and one-half per cent of
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1                the member's average final compensation in
 
 2                addition to an annuity that is the actuarial
 
 3                equivalent of the member's accumulated
 
 4                contributions allocable to the period of such
 
 5                service; and
 
 6           (B)  For all other credited service, as provided in
 
 7                paragraphs (1), (2), and (4).  No allowance shall
 
 8                exceed seventy-five per cent of the member's
 
 9                average final compensation.  If the allowance
 
10                exceeds this limit, it shall be adjusted by
 
11                reducing the annuity included in subparagraph (A),
 
12                and the portion of the accumulated contributions
 
13                specified in that subparagraph in excess of the
 
14                requirements of the reduced annuity shall be
 
15                returned to the member.
 
16           The allowance for judges under this paragraph, together
 
17           with the retirement allowance provided by the federal
 
18           government for similar service, shall in no case exceed
 
19           seventy-five per cent of the member's average final
 
20           compensation; or
 
21      (4)  If the member has credited service as an elective
 
22           officer or as a legislative officer, the member's
 
23           retirement allowance shall be derived by adding the
 

 
Page 9                                                     1416
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           allowances computed separately under subparagraphs (A),
 
 2           (B), (C), and (D) as follows:
 
 3           (A)  Irrespective of age, for each year of credited
 
 4                service as an elective officer, three and one-half
 
 5                per cent of the member's average final
 
 6                compensation as computed under section
 
 7                88-81(d)(1), in addition to an annuity that is the
 
 8                actuarial equivalent of the member's accumulated
 
 9                contributions allocable to the period of service;
 
10                and
 
11           (B)  Irrespective of age, for each year of credited
 
12                service as a legislative officer, three and one-
 
13                half per cent of the member's average final
 
14                compensation as computed under section
 
15                88-81(d)(2), 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           (C)  Irrespective of age, for each year of credited
 
19                service as a judge, three and one-half per cent of
 
20                the member's average final compensation as
 
21                computed under section 88-81(d)(3), in addition to
 
22                an annuity that is the actuarial equivalent of the
 
23                member's accumulated contributions allocable to
 
24                the period of service; and
 

 
Page 10                                                    1416
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           (D)  For each year of credited service not included in
 
 2                subparagraph (A), (B), or (C), the average final
 
 3                compensation as computed under section 88-81(d)(4)
 
 4                shall be multiplied by two per cent, two and one-
 
 5                half per cent, or one and one-quarter per cent, as
 
 6                applicable to the credited service earned as a
 
 7                class A, B, or C member, respectively.
 
 8           The total retirement allowance shall not exceed
 
 9           seventy-five per cent of the member's highest average
 
10           final compensation calculated under section
 
11           88-81(d)(1), (2), (3), or (4).  If the allowance
 
12           exceeds this limit, it shall be adjusted by reducing
 
13           any annuity accrued under subparagraphs (A), (B), and
 
14           (C) and the portion of the accumulated contributions
 
15           specified in these subparagraphs in excess of the
 
16           requirements of the reduced annuity shall be returned
 
17           to the member.  If a member has service credit as an
 
18           elective officer or as a legislative officer in
 
19           addition to service credit as a judge, then the
 
20           retirement benefit calculation contained in this
 
21           paragraph shall supersede the formula contained in
 
22           paragraph (3)."
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 5.  (a)  Notwithstanding any other law to the
 
 2 contrary, deputy sheriffs in the department of public safety who
 
 3 are in service on June 30, 1999, may convert to class A
 
 4 membership of the employees' retirement system; provided that
 
 5 their membership service before July 1, 1999, shall remain at
 
 6 class C level.  An election form indicating the option selected
 
 7 shall be filed with the board of trustees prior to December 1,
 
 8 1999, and those members converting to class A shall arrange for
 
 9 additional deductions or lump sum payments pursuant to sections
 
10 88-45 and 88-59, Hawaii Revised Statutes, to commence by January
 
11 1, 2000.  The election filed with the board of trustees shall be
 
12 irrevocable.
 
13      (b)  All deputy sheriffs of the department of public safety
 
14 hired after June 30, 1999, shall be designated class A members of
 
15 the employees' retirement system.
 
16      (c)  Notwithstanding any other law to the contrary, deputy
 
17 sheriffs in the department of public safety who are in service on
 
18 June 30, 19999, may retire after twenty-five years of service
 
19 irrespective of age.
 
20      SECTION 6.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 7.  This Act shall take effect on July 1, 1999.