REPORT TITLE:
ERS; Death Benefits


DESCRIPTION:
Where there is no surviving spouse of employee who qualified for
but had not yet retired, allows surviving dependent children to
receive ERS death benefits after age 18 while a full-time student
or until reaching age 24, whichever occurs first.  (HB186 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        186
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO DEATH BENEFITS OF SURVIVING CHILDREN OF PUBLIC
   EMPLOYEES.



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

 1      SECTION 1.  Section 88-84, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  If the member's designation of beneficiary is void as
 
 4 specified in section 88-93, or if the member did not designate a
 
 5 beneficiary, there shall be payable:
 
 6      (1)  To the surviving spouse or reciprocal beneficiary, a
 
 7           benefit as specified under subsection (a)(1), (2), or
 
 8           (3);
 
 9      (2)  To the deceased member's dependent child, or children
 
10           under age eighteen if there is no surviving spouse or
 
11           reciprocal beneficiary, an equally divided benefit as
 
12           specified under subsection (a)(1); provided that the
 
13           benefit may continue for as long as the child continues
 
14           to be a full-time student or until age twenty-four,
 
15           whichever is earlier; or
 
16      (3)  To the deceased member's estate, if there is no
 
17           surviving spouse or reciprocal beneficiary or dependent
 
18           child or children, a benefit as specified under
 
19           subsection (a)(1)."
 

 
Page 2                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 2.  Section 88-85, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-85  Accidental death benefit.  (a)  Upon the receipt of
 
 4 proper proofs of a member's death by the board of trustees, there
 
 5 shall be paid to the member's designated beneficiary or to the
 
 6 member's estate the amount of the member's accumulated
 
 7 contributions and if, upon the receipt of evidence or proofs that
 
 8 the death was the natural and proximate result of an accident
 
 9 occurring at some definite time and place while the member was in
 
10 the actual performance of duty, or that the death was due to the
 
11 result of some occupational hazard, the board shall decide that
 
12 the death was the result of an accident in the performance of
 
13 duty and not caused by wilful negligence on the part of the
 
14 member, there shall be paid in lieu of the ordinary death
 
15 benefits provided by the contributions of the State or county, a
 
16 pension of one-half of the average final compensation of the
 
17 member:
 
18      (1)  To the surviving spouse or reciprocal beneficiary of
 
19           the member to continue until the surviving spouse or
 
20           reciprocal beneficiary remarries, marries, or enters
 
21           into a new reciprocal beneficiary relationship; or
 
22      (2)  If there be no surviving spouse or reciprocal
 
23           beneficiary, or if the surviving spouse or reciprocal
 

 
Page 3                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           beneficiary dies or remarries, marries, or enters into
 
 2           a new reciprocal beneficiary relationship before any
 
 3           child of the deceased member shall have attained the
 
 4           age of eighteen years, then to the deceased member's
 
 5           child or children under such age, divided in such
 
 6           manner as the board in its discretion shall determine,
 
 7           to continue as a joint and survivor pension of one-half
 
 8           of the deceased member's final compensation until every
 
 9           child dies, or attains such age; provided that the
 
10           survivor pension may continue for as long as the child
 
11           continues to be a full-time student, or until age
 
12           twenty-four, whichever is earlier; or
 
13      (3)  If there is no surviving spouse or reciprocal
 
14           beneficiary or child under the age of eighteen years
 
15           surviving the deceased member, then to the deceased
 
16           member's dependent father or dependent mother, as the
 
17           deceased member shall have nominated by written
 
18           designation duly acknowledged and filed with the board,
 
19           or if there is no such nomination, then to the deceased
 
20           member's dependent father or to the deceased member's
 
21           dependent mother as the board, in its discretion, shall
 
22           direct to continue for life.
 

 
 
 
Page 4                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (b)  Notwithstanding any other law to the contrary, any
 
 2 condition of impairment of health caused by any disease of the
 
 3 heart, lungs, or respiratory system, resulting in death to a
 
 4 firefighter, police officer, or sewer worker, shall be presumed
 
 5 to have been suffered in the actual performance of duty at some
 
 6 definite time and place through no wilful negligence on the
 
 7 firefighter's, police officer's, or sewer worker's part, and as a
 
 8 result of the inherent occupational hazard of exposure to and
 
 9 inhalation of smoke, toxic gases, chemical fumes, and other toxic
 
10 vapors, unless the contrary be shown by competent evidence;
 
11 provided that such firefighter, police officer, or sewer worker
 
12 shall have passed a physical examination on entry into such
 
13 service or subsequent to such entry, which examination failed to
 
14 reveal any evidence of such condition."
 
15      SECTION 3.  Section 88-163, Hawaii Revised Statutes, is
 
16 amended by amending subsection (a) to read as follows:
 
17      "(a)  Upon the death of any member of the police force, fire
 
18 department, or band, as a result of any injury received or
 
19 disease contracted while in the performance of his duty, or when
 
20 entitled to a pension under this part or who has been pensioned
 
21 under this part there shall be paid, for funeral expenses, a sum
 
22 not to exceed $100.  Should the deceased member leave a dependent
 
23 widow or reciprocal beneficiary and a child or children under the
 

 
Page 5                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 age of eighteen years, then there shall be paid out of the system
 
 2 $50 per month to the widow until her death or remarriage or to
 
 3 the reciprocal beneficiary until death, marriage, or entry into a
 
 4 new reciprocal beneficiary relationship and $7.50 per month to
 
 5 the widow or reciprocal beneficiary for each child so long as the
 
 6 child shall reside with the widow or reciprocal beneficiary or is
 
 7 supported by the widow or reciprocal beneficiary.  Upon the death
 
 8 of such widow or reciprocal beneficiary, or in the event the
 
 9 deceased member leaves no widow or reciprocal beneficiary but a
 
10 child or children under the age of eighteen years, then there
 
11 shall be paid out of the system $50 per month to the child or
 
12 children of the deceased member under the age of eighteen years
 
13 with each child, if there be more than one, receiving an equal
 
14 share of the $50 per month payment plus $7.50 per month.  All
 
15 payments to a child of a deceased member provided for herein
 
16 shall cease when he or she arrives at the age of eighteen
 
17 years[.]; provided that the benefit may continue for as long as
 
18 the child continues to be a full-time student or until age
 
19 twenty-four, whichever is earlier."
 
20      SECTION 4.  Section 88-286, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "88-286  Death benefit.(a)  The surviving spouse or
 
23 reciprocal beneficiary and dependent child or children of a
 

 
Page 6                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 member at the time of the member's death shall be eligible for a
 
 2 death benefit if the member suffers either an ordinary death
 
 3 while in service or on authorized leave without pay after
 
 4 accumulating ten years of credited service or an accidental
 
 5 death.
 
 6      (b)  In the case of ordinary death, the death benefit shall
 
 7 be as follows:
 
 8      (1)  For the surviving spouse or reciprocal beneficiary, an
 
 9           allowance equal to one-half of the member's accrued
 
10           normal retirement allowance unreduced for age, payable
 
11           until remarriage, marriage, or entry into a new
 
12           reciprocal beneficiary relationship[[],[]] as if the
 
13           member had retired the day prior to death; and for each
 
14           dependent child an allowance equal to ten per cent of
 
15           the member's accrued normal retirement allowance
 
16           unreduced for age, payable until the dependent child
 
17           attains age eighteen; provided that [the]:
 
18           (A)  The allowance may continue for as long as the
 
19                dependent child continues to be a full-time
 
20                student, or until age twenty-four, whichever is
 
21                earlier; and
 
22           (B)  The aggregate death benefits for all the dependent
 
23                children shall not exceed twenty per cent of the
 

 
Page 7                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1                member's accrued normal retirement allowance
 
 2                unreduced for age; or
 
 3      (2)  For the surviving spouse [[]or reciprocal
 
 4           beneficiary[]], if the member was eligible for
 
 5           retirement at the time of death in service, and death
 
 6           occurred after June 30, 1990, an allowance that would
 
 7           have been payable as if the member had retired the day
 
 8           prior to death and had elected to receive a retirement
 
 9           allowance under option B of section 88-283; and
 
10      (3)  If there is no surviving spouse or reciprocal
 
11           beneficiary, each dependent child shall receive an
 
12           allowance equal to twenty per cent of the member's
 
13           accrued normal retirement allowance unreduced for age,
 
14           payable until the dependent child attains age eighteen;
 
15           provided that the allowance may continue for as long as
 
16           the dependent child continues to be a full-time
 
17           student, or until age twenty-four, whichever is
 
18           earlier; provided further that the aggregate death
 
19           benefits for all the dependent children shall not
 
20           exceed forty per cent of the member's accrued normal
 
21           retirement allowance unreduced for age.
 
22      For the purpose of determining eligibility for the ordinary
 
23 death benefit, a year round school employee shall be considered
 

 
Page 8                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 in service during the July and August preceding a transfer to a
 
 2 traditional school schedule if the employee was in service for
 
 3 the entire prior school year and has a contract for the upcoming
 
 4 traditional school year.
 
 5      (c)  In the case of accidental death, the death benefit
 
 6 shall be as follows:
 
 7      (1)  For the surviving spouse, or reciprocal beneficiary, an
 
 8           allowance equal to thirty per cent of the member's
 
 9           average final compensation, payable until remarriage;
 
10      (2)  If there is a surviving spouse or reciprocal
 
11           beneficiary, each dependent child under eighteen shall
 
12           receive an allowance equal to the greater of:
 
13           (A)  Ten per cent of the member's accrued normal
 
14                retirement allowance, unreduced for age; provided
 
15                that the aggregate death benefits for all the
 
16                dependent children shall not exceed twenty per
 
17                cent of the member's accrued normal retirement
 
18                allowance unreduced for age; or
 
19           (B)  Three per cent of the member's average final
 
20                compensation; provided that the aggregate death
 
21                benefits for all the dependent children shall not
 
22                exceed six per cent of the member's average final
 
23                compensation.
 

 
Page 9                                                     186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           The death benefit under this paragraph shall be payable
 
 2           to each dependent child until the dependent child
 
 3           attains age eighteen; provided that the allowance may
 
 4           continue for as long as the dependent child continues
 
 5           to be a full-time student, or until age twenty-four,
 
 6           whichever is earlier; and
 
 7      (3)  If there is no surviving spouse or reciprocal
 
 8           beneficiary, each dependent child under eighteen shall
 
 9           receive an allowance equal to the greater of:
 
10           (A)  Twenty per cent of the member's accrued normal
 
11                retirement allowance, unreduced for age; provided
 
12                that the aggregate death benefits for all the
 
13                dependent children shall not exceed forty per cent
 
14                of the member's accrued normal retirement
 
15                allowance unreduced for age; or
 
16           (B)  Six per cent of the member's average final
 
17                compensation; provided that the aggregate death
 
18                benefits for all the dependent children shall not
 
19                exceed twelve per cent of the member's average
 
20                final compensation.
 
21           The death benefit under this paragraph shall be payable
 
22           to each dependent child until the dependent child
 
23           attains age eighteen[.]; provided that the allowance
 

 
Page 10                                                    186
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           may continue for as long as the dependent child
 
 2           continues to be a full-time student, or until age
 
 3           twenty-four, whichever is earlier."
 
 4      SECTION 5.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 6.  This Act shall take effect upon its approval.