REPORT TITLE:
Judiciary; Salaries


DESCRIPTION:
Provides salary increases for judges.  Changes retirement
provisions for future judges. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        20
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE JUDICIARY.



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

 1      SECTION 1.  The legislature finds that Hawaii's judges are
 
 2 significantly undercompensated.  Private law firm attorneys with
 
 3 an average of fifteen to twenty-five years of experience earned
 
 4 more than $135,000 while jurists with comparable years of
 
 5 experience earned between $81,780 and $94,780 annually.  In
 
 6 addition, the legislature finds that Hawaii is the only state in
 
 7 the nation that has not increased the salary of its judges during
 
 8 the last nine years.  Since 1990, forty-four of the remaining
 
 9 forty-nine states have granted their judges three or more raises.
 
10 In 1997 alone, twenty-nine states raised the salaries of their
 
11 general trial court justices.
 
12      The legislature further finds that Hawaii's failure to
 
13 adequately compensate its judges is adversely affecting the
 
14 quality of justice.  Insufficient compensation creates the risk
 
15 that judges will leave the bench, thus depriving the public of
 
16 the significant value of experienced jurists.  Since 1992, ten
 
17 seasoned and experienced judges have left Hawaii's bench due, in
 
18 part, to the lack of adequate compensation.  The legislature
 
19 notes that in recent months, another two seasoned justices have
 
20 announced their intention to leave the bench.  The Judicial
 

 
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 1 Salary Commission believes that these departures will continue
 
 2 until compensation is adjusted.  Therefore, the legislature
 
 3 recognizes that an increase in judicial salaries is required in
 
 4 order to ensure that the most highly qualified individuals will
 
 5 be attracted to the state judiciary and will be able to serve and
 
 6 continue to serve without unreasonable economic hardship.
 
 7      The purpose of this Act is to:
 
 8      (1)  Amend the service retirement laws to correlate years on
 
 9           the bench with retirement benefits; and
 
10      (2)  Increase judicial salaries by eighteen per cent over
 
11           two years.
 
12                              PART I.
 
13      SECTION 2.  Section 88-73, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "88-73  Service retirement.  Retirement of a member on a
 
16 service retirement allowance shall be made by the board of
 
17 trustees or its designee as follows:
 
18      (1)  Any member who has at least five years of credited
 
19           service and who has attained age fifty-five or any
 
20           member who has at least twenty-five years of credited
 
21           service or any member who has at least ten years of
 
22           credited service, [including] which includes service as
 
23           a judge before July 1, 1999, an elective officer, or
 

 
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 1           [the chief clerk, assistant clerk, sergeant at arms, or
 
 2           assistant sergeant at arms of either house of the
 
 3           legislature] a legislative officer, may retire upon
 
 4           written application to the board specifying on what
 
 5           date, not less than thirty days nor more than ninety
 
 6           days subsequent to the execution and filing thereof,
 
 7           the member desires to be retired.  In the event of the
 
 8           death of a member after the date of the filing of the
 
 9           member's written application to retire, the designated
 
10           beneficiary, otherwise the personal representative of
 
11           the member's estate, shall receive the allowance under
 
12           the option selected by the member which would have been
 
13           payable had the member retired, and the benefits paid
 
14           to the beneficiary or representative shall be computed
 
15           as though the member had died on or after the effective
 
16           date of the member's retirement;
 
17      (2)  Any member who first earned credited service as a judge
 
18           after June 30, 1999, may retire upon written
 
19           application to the board specifying on what date, not
 
20           less than thirty days nor more than ninety days
 
21           subsequent to the execution and filing thereof, the
 
22           member desires to be retired; provided that the member
 
23           has at least five years of credited service and has
 

 
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                                     H.B. NO.           H.D. 2
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 1           attained age fifty-five or has at least twenty-five
 
 2           years of credited service.  In the event of the death
 
 3           of a member after the date of the filing of the
 
 4           member's written application to retire, the designated
 
 5           beneficiary, otherwise the personal representative of
 
 6           the member's estate, shall receive the allowance under
 
 7           the option selected by the member which would have been
 
 8           payable had the member retired, and the benefits paid
 
 9           to the beneficiary or representative shall be computed
 
10           as though the member had died on or after the effective
 
11           date of the member's retirement;
 
12     [(2)] (3)  Any member of the legislature who attains age
 
13           sixty-five may retire and receive a service retirement
 
14           allowance although the member continues to fill the
 
15           elective position;
 
16     [(3)] (4)  For the purpose of computing or determining
 
17           benefits for an elective officer or judge, or any
 
18           beneficiary of either, the date upon which the elective
 
19           officer or judge elected to retire, as provided by
 
20           section 88-61(c), after attaining an allowance of
 
21           seventy-five per cent of average final compensation,
 
22           shall be used as the effective date of retirement;
 
23           provided that the elective officer or judge may
 

 
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 1           continue in active service, but shall not receive a
 
 2           retirement allowance until termination of active
 
 3           service; [however,] provided further that upon leaving
 
 4           active service the elective officer or judge shall
 
 5           receive the retirement allowance provided for in
 
 6           section 88-74, together with the post retirement
 
 7           allowances provided for in section 88-90, which post
 
 8           retirement allowances shall be computed from the date
 
 9           of the election as though the elective officer or judge
 
10           had left active service on that day; and
 
11     [(4)] (5)  In the case of a class A or B member who also has
 
12           prior credited service under part VII, total credited
 
13           service as a class A, class B, and class C member shall
 
14           be used to determine the eligibility for retirement
 
15           allowance."
 
16      SECTION 3.  Section 88-74, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "88-74  Allowance on service retirement.  Upon retirement
 
19 from service, a member shall receive a retirement allowance as
 
20 follows:
 
21      (1)  If the member has attained age fifty-five, a retirement
 
22           allowance of two per cent of the member's average final
 
23           compensation multiplied by the total number of years of
 

 
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 1           the member's credited service as a class A and B
 
 2           member, excluding any credited service as [an] a judge,
 
 3           elective officer, or legislative officer, plus a
 
 4           retirement allowance of one and one-fourth per cent of
 
 5           the member's average final compensation multiplied by
 
 6           the total number of years of prior credited service as
 
 7           a class C member; provided that:
 
 8           (A)  After June 30, 1968, if the member has at least
 
 9                ten years of credited service of which the last
 
10                five or more years prior to retirement is credited
 
11                service as a firefighter, police officer, or an
 
12                investigator of the department of the prosecuting
 
13                attorney;
 
14           (B)  After June 30, 1977, if the member has at least
 
15                ten years of credited service of which the last
 
16                five or more years prior to retirement is credited
 
17                service as a corrections officer;
 
18           (C)  After June 16, 1981, if the member has at least
 
19                ten years of credited service of which the last
 
20                five or more years prior to retirement is credited
 
21                service as an investigator of the department of
 
22                the attorney general;
 
23           (D)  After June 30, 1989, if the member has at least
 

 
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                                     H.B. NO.           H.D. 2
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 1                ten years of credited service of which the last
 
 2                five or more years prior to retirement is credited
 
 3                service as a narcotics enforcement investigator; 
 
 4           (E)  After December 31, 1993, if the member has at
 
 5                least ten years of credited service of which the
 
 6                last five or more years prior to retirement is
 
 7                credited service as a water safety officer; and
 
 8           (F)  After June 30, 1994, if the member has at least
 
 9                ten years of credited service, of which the last
 
10                five or more years prior to retirement are
 
11                credited service as a public safety
 
12                [investigative] investigations staff investigator;
 
13           then for each year of service as a firefighter, police
 
14           officer, corrections officer, investigator of the
 
15           department of the prosecuting attorney, investigator of
 
16           the department of the attorney general, narcotics
 
17           enforcement investigator, water safety officer, or
 
18           public safety investigations staff investigator, the
 
19           retirement allowance shall be two and one-half per cent
 
20           of the member's average final compensation.  The
 
21           maximum retirement allowance for those members shall
 
22           not exceed eighty per cent of the member's average
 
23           final compensation.  If the member has not attained age
 

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

 
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                                     H.B. NO.           H.D. 2
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 1      (3)  If the member has credited service, as a judge, the
 
 2           member's retirement allowance shall be computed on the
 
 3           following basis:
 
 4           (A)  For a member who has credited service as a judge
 
 5                before July 1, 1999, [Irrespective] irrespective
 
 6                of age, for each year of credited service as a
 
 7                judge, three and one-half per cent of the member's
 
 8                average final compensation in addition to an
 
 9                annuity that is the actuarial equivalent of the
 
10                member's accumulated contributions allocable to
 
11                the period of such service; and
 
12           [(B) For all other credited service, as provided in
 
13                paragraphs (1), (2) and (4).  No allowance shall
 
14                exceed seventy-five per cent of the member's
 
15                average final compensation.  If the allowance
 
16                exceeds this limit, it shall be adjusted by
 
17                reducing the annuity included in subparagraph (A),
 
18                and the portion of the accumulated contributions
 
19                specified in that subparagraph in excess of the
 
20                requirements of the reduced annuity shall be
 
21                returned to the member.
 
22                The allowance for judges under this paragraph,
 
23                together with the retirement allowance provided by
 

 
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                                     H.B. NO.           H.D. 2
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 1                the federal government for similar service, shall
 
 2                in no case exceed seventy-five per cent of the
 
 3                member's average final compensation; or]
 
 4           (B)  For a member who first earned credited service as
 
 5                a judge after June 30, 1999, for each year of
 
 6                credited service as a judge, three and one-half
 
 7                per cent of the member's average final
 
 8                compensation in addition to an annuity that is the
 
 9                actuarial equivalent of the member's accumulated
 
10                contributions allocable to the period of such
 
11                service.  If the member has not attained age
 
12                fifty-five, the member's retirement allowance
 
13                shall be computed as though the member had
 
14                attained age fifty-five, reduced in accordance
 
15                with factors of actuarial equivalence adopted by
 
16                the board upon the advice of the actuary; or
 
17           (C)  For a judge with other credited service, as
 
18                provided in paragraphs (1) and (2).  If the member
 
19                has not attained age fifty-five, the member's
 
20                retirement allowance shall be computed as though
 
21                the member had attained age fifty-five, reduced in
 
22                accordance with factors of actuarial equivalence
 
23                adopted by the board upon the advice of the
 

 
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                                     H.B. NO.           H.D. 2
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 1                actuary; or
 
 2           (D)  For a judge with credited service as an elective
 
 3                officer or as a legislative officer, as provided
 
 4                in paragraph (4).
 
 5           No allowance shall exceed seventy-five per cent of the
 
 6           member's average final compensation.  If the allowance
 
 7           exceeds this limit, it shall be adjusted by reducing
 
 8           the annuity included in subparagraphs (A) and (B) and
 
 9           the portion of the accumulated contributions specified
 
10           in the subparagraphs in excess of the requirements of
 
11           the reduced annuity shall be returned to the member.
 
12           The allowance for judges under this paragraph, together
 
13           with the retirement allowance provided by the federal
 
14           government for similar service, shall in no case exceed
 
15           seventy-five per cent of the member's average final
 
16           compensation; or
 
17     (4)   If the member has credited service as an elective
 
18           officer or as a legislative officer, the member's
 
19           retirement allowance shall be derived by adding the
 
20           allowances computed separately under subparagraphs (A),
 
21           (B), (C), and (D) as follows:
 
22           (A)  Irrespective of age, for each year of credited
 
23                service as an elective officer, three and one-half
 

 
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 1                per cent of the member's average final
 
 2                compensation as computed under section
 
 3                88-81(d)(1), in addition to an annuity that is the
 
 4                actuarial equivalent of the member's accumulated
 
 5                contributions allocable to the period of service;
 
 6                and
 
 7           (B)  Irrespective of age, for each year of credited
 
 8                service as a legislative officer, three and one-
 
 9                half per cent of the member's average final
 
10                compensation as computed under section
 
11                88-81(d)(2), in addition to an annuity that is the
 
12                actuarial equivalent of the member's accumulated
 
13                contributions allocable to the period of service;
 
14           [(C) Irrespective of age, for each year of credited
 
15                service as a judge, three and one-half per cent of
 
16                the member's average final compensation as
 
17                computed under section 88-81(d)(3), in addition to
 
18                an annuity that is the actuarial equivalent of the
 
19                member's accumulated contributions allocable to
 
20                the period of service; and]
 
21           (C)  If the member has credited service as a judge, the
 
22                member's retirement allowance shall be computed on
 
23                the following basis:
 

 
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                                     H.B. NO.           H.D. 2
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 1                (i)  For a member who has credited service as a
 
 2                     judge before July 1, 1999, irrespective of
 
 3                     age, for each year of credited service as a
 
 4                     judge, three and one-half per cent of the
 
 5                     member's average final compensation as
 
 6                     computed under section 88-81(d)(3), in
 
 7                     addition to an annuity that is the actuarial
 
 8                     equivalent of the member's accumulated
 
 9                     contributions allocable to the period of such
 
10                     service; and
 
11                (ii) For a member who first earned credited
 
12                     service as a judge after June 30, 1999, and
 
13                     has attained the age of fifty-five, for each
 
14                     year of credited service as a judge, three
 
15                     and one-half per cent of the member's average
 
16                     final compensation as computed under section
 
17                     88-81(d)(3), in addition to an annuity that
 
18                     is the actuarial equivalent of the member's
 
19                     accumulated contributions allocable to the
 
20                     period of such service. If the member has not
 
21                     attained age fifty-five, the member's
 
22                     retirement allowance shall be computed as
 
23                     though the member had attained age fifty-
 

 
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                                     H.B. NO.           H.D. 2
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 1                     five, reduced in accordance with factors of
 
 2                     actuarial equivalence adopted by the board
 
 3                     upon the advice of the actuary; and
 
 4           (D)  For each year of credited service not included in
 
 5                subparagraph (A), (B), or (C), the average final
 
 6                compensation as computed under section 88-81(d)(4)
 
 7                shall be multiplied by two per cent, two and one-
 
 8                half per cent, or one and one-quarter per cent, as
 
 9                applicable to the credited service earned as a
 
10                class A, B, or C member, respectively.  If the
 
11                member has not attained age fifty-five, the
 
12                member's retirement allowance shall be computed as
 
13                though the member had attained age fifty-five,
 
14                reduced in accordance with factors of actuarial
 
15                equivalence adopted by the board upon the advice
 
16                of the actuary.
 
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.           H.D. 2
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 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                             PART II.
 
10      SECTION 4.  Section 602-2, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "602-2 Salary, supreme court justices.  Effective
 
13 [January 1, 1989,] July 1, 1999, the salary of the chief justice
 
14 of the supreme court shall be [$90,699] $103,310 a year and the
 
15 salary of each associate justice of the supreme court shall be
 
16 [$89,699] $102,220 a year.  Effective [January 1, 1990,] July 1,
 
17 2000, the salary of the chief justice of the supreme court shall
 
18 be [$94,780] $112,608 a year and the salary of each associate
 
19 justice of the supreme court shall be [$93,780] $111,420 a year."  
 
20      SECTION 5.  Section 602-52, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "602-52  Salary.  Effective [January 1, 1989,] July 1,
 
23 1999, the salary of the chief judge of the intermediate appellate
 

 
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                                     H.B. NO.           H.D. 2
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 1 court shall be [$87,199] $99,495 a year and the salary of each
 
 2 associate judge shall be [$85,699] $97,860 a year.  Effective
 
 3 [January 1, 1990,] July 1, 2000, the salary of the chief judge of
 
 4 the intermediate appellate court shall be [$91,280] $108,450 a
 
 5 year and the salary of each associate judge shall be [$89,780]
 
 6 $106,667 a year."
 
 7      SECTION 6.  Section 603-5, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "603-5 Salary of circuit court judges.  Effective
 
10 [January 1, 1989,] July 1, 1999, the salary of each circuit court
 
11 judge of the various circuit courts of the State shall be
 
12 [$82,699] $94,590 a year.  Effective [January 1, 1990,] July 1,
 
13 2000, the salary of each circuit court judge of the various
 
14 circuit courts of the State shall be [$86,780] $103,103 a year."  
 
15      SECTION 7.  Section 604-2.5, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "604-2.5  Salary of district judges.  Effective [January 1,
 
18 1989,] July 1, 1999, the salary of each district court judge of
 
19 the various district courts of the State shall be [$77,699]
 
20 $89,140 a year.  Effective [January 1, 1990,] July 1, 2000, the
 
21 salary of each district court judge of the various district
 
22 courts of the State shall be [$81,780] $97,163 a year.
 
23      Whenever the chief justice appoints a district court judge
 

 
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 1 of any of the various district courts of the State to serve
 
 2 temporarily as a circuit court judge of any of the various
 
 3 circuit courts of the State, the judge shall receive per diem
 
 4 compensation for the days on which actual service is rendered
 
 5 based on the monthly rate of compensation paid to a circuit court
 
 6 judge.  For the purpose of determining per diem compensation in
 
 7 this section, a month shall be deemed to consist of twenty-one
 
 8 days."
 
 9                             PART III.
 
10      SECTION 8.  There is appropriated out of the general
 
11 revenues of the State of Hawaii the sum of $7,659,675, or so much
 
12 thereof as may be necessary for fiscal year 1999-2000, and the
 
13 sum of $8,349,061, or so much thereof as may be necessary for
 
14 fiscal year 2000-2001, for salaries in the judiciary.  The sum
 
15 appropriated shall be expended by the judiciary for the purposes
 
16 of this Act.
 
17      SECTION 9.  If any provision of this Act, or the application
 
18 thereof to any person or circumstance is held invalid, the
 
19 invalidity does not affect other provisions or applications of
 
20 the Act which can be given effect without the invalid provision
 
21 or application, and to this end the provisions of this Act are
 
22 severable.
 
23      SECTION 10.  Statutory material to be repealed is bracketed.
 

 
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 1 New statutory material is underscored.
 
 2      SECTION 11.  This Act shall take effect on July 1, 1999;
 
 3 provided that with respect to judges who are members of the
 
 4 employees' retirement system and who have credited service as a
 
 5 judge before July 1, 1999, the members' benefits shall not be
 
 6 diminished nor impaired by this Act.