REPORT TITLE:
Cons & Res Officer Retirement


DESCRIPTION:
Provides conservation and resources law enforcement officers with
the same retirement benefits as police officers and firefighters.
(HB499 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        499
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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      ""Conservation and resources law enforcement officer":  any
 
 5 regularly employed member of the department of land and natural
 
 6 resources commissioned with full police powers whose principal
 
 7 duty is to enforce conservation laws and protect the State's
 
 8 natural resources."
 
 9      SECTION 2.  Section 88-45, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "88-45  Employee contributions.  After June 30, 1988, each
 
12 class A and class B member shall contribute seven and eight-
 
13 tenths per cent of the member's compensation to the annuity
 
14 savings fund; provided that after June 30, 1989, all
 
15 firefighters, police officers, corrections officers,
 
16 investigators of the departments of the prosecuting attorney and
 
17 of the attorney general, narcotics enforcement investigators,
 
18 water safety officers not making the election under section
 
19 88-271, conservation and resources law enforcement officers of
 

 
Page 2                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 the department of land and natural resources, and public safety
 
 2 investigations staff investigators shall contribute twelve and
 
 3 two-tenths per cent of their compensation to the annuity savings
 
 4 fund for service in that capacity."
 
 5      SECTION 3.  Section 88-47, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (a) to read as follows:
 
 7      "(a)  There shall be three classes of members in the system
 
 8 to be known as class A, class B, and class C, defined as follows:
 
 9      (1)  Class A shall consist of members covered by section
 
10           88-74(3), those members whose salaries are set forth in
 
11           sections 26-52 and 26-53, and their county
 
12           counterparts, managing directors or administrative
 
13           assistant to the mayor, and other department heads,
 
14           including agency heads appointed by the mayor, first
 
15           deputies appointed by the county attorney and
 
16           prosecuting attorney, the county clerk and deputy
 
17           county clerk of each county, the administrative
 
18           director of the courts, the deputy administrative
 
19           director of the courts, the executive director of the
 
20           labor and industrial relations appeals board, the
 
21           executive director of the Hawaii labor relations board,
 
22           investigators of the department of the attorney
 
23           general, narcotics enforcement investigators, water
 

 
Page 3                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           safety officers not making the election under section
 
 2           88-271, public safety investigations staff
 
 3           investigators, conservation and resources law
 
 4           enforcement officers of the department of land and
 
 5           natural resources, and those members in service prior
 
 6           to July 1, 1984, including those who are on approved
 
 7           leave of absence, who are covered by Title II of the
 
 8           Social Security Act on account of service creditable
 
 9           under this part.  This class shall consist of:
 
10           (A)  All employees who enter membership after June 30,
 
11                1957, except employees in positions to which
 
12                coverage under Title II of the Social Security Act
 
13                is not extended;
 
14           (B)  All employees who were members on July 1, 1957,
 
15                who elected to be covered by the Social Security
 
16                Act; and
 
17           (C)  All former class A retirants who return to
 
18                employment after June 30, 1984, requiring the
 
19                retirant's active membership;
 
20      (2)  Class B shall consist of all members who are not class
 
21           A or class C members; and
 
22      (3)  Except for members described in [section 88-47(a)(1),]
 
23           subsection (a)(1), class C shall consist of all
 

 
Page 4                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           employees in positions covered by Title II of the
 
 2           Social Security Act who:
 
 3           (A)  First enter service after June 30, 1984;
 
 4           (B)  Reenter service after June 30, 1984, without
 
 5                vested benefit status as provided in section
 
 6                88-96(b);
 
 7           (C)  Make the election to become a class C member as
 
 8                provided in part VII; or
 
 9           (D)  Are former class C retirants who return to service
 
10                requiring the retirant's active membership."
 
11      SECTION 4.  Section 88-74, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "88-74  Allowance on service retirement.  Upon retirement
 
14 from service, a member shall receive a retirement allowance as
 
15 follows:
 
16      (1)  If the member has attained age fifty-five, a retirement
 
17           allowance of two per cent of the member's average final
 
18           compensation multiplied by the total number of years of
 
19           the member's credited service as a class A [and] or
 
20           class B member, excluding any credited service as an
 
21           elective officer or legislative officer, plus a
 
22           retirement allowance of one and one-fourth per cent of
 
23           the member's average final compensation multiplied by
 

 
Page 5                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           the total number of years of prior credited service as
 
 2           a class C member; provided that:
 
 3           (A)  After June 30, 1968, 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 firefighter, police officer, or an
 
 7                investigator of the department of the prosecuting
 
 8                attorney;
 
 9           (B)  After June 30, 1977, if the member has at least
 
10                ten years of credited service of which the last
 
11                five or more years prior to retirement is credited
 
12                service as a corrections officer;
 
13           (C)  After June 16, 1981, if the member has at least
 
14                ten years of credited service of which the last
 
15                five or more years prior to retirement is credited
 
16                service as an investigator of the department of
 
17                the attorney general;
 
18           (D)  After June 30, 1989, 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 a narcotics enforcement investigator;
 
22           (E)  After December 31, 1993, if the member has at
 
23                least ten years of credited service of which the
 

 
Page 6                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1                last five or more years prior to retirement is
 
 2                credited service as a water safety officer; and
 
 3           (F)  After June 30, 1994, if the member has at least
 
 4                ten years of credited service, of which the last
 
 5                five or more years prior to retirement are
 
 6                credited service as a public safety
 
 7                [investigative] investigations staff investigator;
 
 8                and
 
 9           (G)  After June 30, 1999, if the member has at least
 
10                ten years of credited service of which the last
 
11                five or more years prior to retirement is credited
 
12                service as a conservation and resources law
 
13                enforcement officer of the department of land and
 
14                natural resources;
 
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,
 
20           conservation and resources law enforcement officer of
 
21           the department of land and natural resources, or public
 
22           safety investigations staff investigator, the
 
23           retirement allowance shall be two and one-half per cent
 

 
Page 7                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
Page 8                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           section 88-72, the member may accept the refund at the
 
 2           time of retirement or, in lieu thereof, receive in
 
 3           addition to the retirement allowance provided in
 
 4           paragraph (1), an annuity that is the actuarial
 
 5           equivalent of the additional contributions with regular
 
 6           interest;
 
 7      (3)  If the member has credited service as a judge, the
 
 8           member's retirement allowance shall be computed on the
 
 9           following basis:
 
10           (A)  Irrespective of age, for each year of credited
 
11                service as a judge, three and one-half per cent of
 
12                the member's average final compensation in
 
13                addition to an annuity that is the actuarial
 
14                equivalent of the member's accumulated
 
15                contributions allocable to the period of such
 
16                service; and
 
17           (B)  For all other credited service, as provided in
 
18                paragraphs (1), (2) and (4).  No allowance shall
 
19                exceed seventy-five per cent of the member's
 
20                average final compensation.  If the allowance
 
21                exceeds this limit, it shall be adjusted by
 
22                reducing the annuity included in subparagraph (A),
 
23                and the portion of the accumulated contributions
 

 
Page 9                                                     499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
Page 10                                                    499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
Page 11                                                    499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           exceeds this limit, it shall be adjusted by reducing
 
 2           any annuity accrued under subparagraphs (A), (B), and
 
 3           (C) and the portion of the accumulated contributions
 
 4           specified in these subparagraphs in excess of the
 
 5           requirements of the reduced annuity shall be returned
 
 6           to the member.  If a member has service credit as an
 
 7           elective officer or as a legislative officer in
 
 8           addition to service credit as a judge, then the
 
 9           retirement benefit calculation contained in this
 
10           paragraph shall supersede the formula contained in
 
11           paragraph (3)."
 
12      SECTION 5.  (a)  Conservation and resources law enforcement
 
13 officers of the department of land and natural resources who are
 
14 in service prior to the effective date of this Act and who are
 
15 class C members shall have the option of remaining in class C or
 
16 converting their membership service to class A.  An election form
 
17 indicating the option selected shall be filed with the board of
 
18 trustees of the employees' retirement system of Hawaii by June 1,
 
19 1999, and those members electing to convert to class A shall
 
20 arrange for additional deductions or lump sum payments pursuant
 
21 to sections 88-45 and 88-59, Hawaii Revised Statutes, to commence
 
22 by July 1, 1999.  The election filed with the board of trustees
 
23 shall be irrevocable.
 

 
Page 12                                                    499
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (b)  All conservation and resources law enforcement officers
 
 2 of the department of land and natural resources hired after the
 
 3 effective date of this Act shall be designated class C members of
 
 4 the employees' retirement system.
 
 5      SECTION 6.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 7.  This Act shall take effect upon its approval.