REPORT TITLE:
DOCARE Officer/OHA Retirement


DESCRIPTION:
Allows conservation and resources law enforcement officers with
at least 25 years of service to retire without penalty.  Provides
retirement benefits for the Trustees of the Office of Hawaiian
Affairs.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        499
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 2
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                              PART I.
 
 2      SECTION 1.  Section 88-21, Hawaii Revised Statutes, is
 
 3 amended by adding a new definition to be appropriately inserted
 
 4 and to read as follows:
 
 5      ""Conservation and resources law enforcement officer":  any
 
 6 regularly employed member of the department of land and natural
 
 7 resources commissioned with full police powers whose principal
 
 8 duty is to enforce conservation laws and protect the State's
 
 9 natural resources."
 
10      SECTION 2.  Section 88-74, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "88-74  Allowance on service retirement.  Upon retirement
 
13 from service, a member shall receive a retirement allowance as
 
14 follows:
 
15      (1)  If the member has attained age fifty-five, a retirement
 
16           allowance of two per cent of the member's average final
 
17           compensation multiplied by the total number of years of
 
18           the member's credited service as a class A and B
 
19           member, excluding any credited service as an elective
 

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

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

 
 
 
Page 3                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1                five or more years prior to retirement is credited
 
 2                service as a narcotics enforcement investigator;
 
 3           (E)  After December 31, 1993, if the member has at
 
 4                least ten years of credited service of which the
 
 5                last five or more years prior to retirement is
 
 6                credited service as a water safety officer; and
 
 7           (F)  After June 30, 1994, if the member has at least
 
 8                ten years of credited service, of which the last
 
 9                five or more years prior to retirement are
 
10                credited service as a public safety
 
11                [investigative] investigations staff investigator;
 
12           then for each year of service as a firefighter, police
 
13           officer, corrections officer, investigator of the
 
14           department of the prosecuting attorney, investigator of
 
15           the department of the attorney general, narcotics
 
16           enforcement investigator, water safety officer, or
 
17           public safety investigations staff investigator, the
 
18           retirement allowance shall be two and one-half per cent
 
19           of the member's average final compensation.  The
 
20           maximum retirement allowance for those members shall
 
21           not exceed eighty per cent of the member's average
 
22           final compensation.  If the member has not attained age
 

 
 
 
Page 4                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 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, conservation and resources
 
13           law enforcement officer of the department of land and
 
14           natural resources, or water safety officer, of which
 
15           the last five or more years prior to retirement is
 
16           credited service in such capacities;
 
17      (2)  If the member has made voluntary additional
 
18           contributions for the purchase of an additional annuity
 
19           and has not applied for a refund as permitted by
 
20           section 88-72, the member may accept the refund at the
 
21           time of retirement or, in lieu thereof, receive in
 
22           addition to the retirement allowance provided in
 

 
 
 
Page 5                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

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

 
 
 
Page 6                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

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

 
 
 
Page 7                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

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

 
 
 
Page 8                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 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 3.  Section 88-281, Hawaii Revised Statutes, is
 
13 amended by amending subsection (b) to read as follows:
 
14      "(b)  If a member has at least twenty-five years of credited
 
15 service as a sewer worker [or as a], water safety officer, or
 
16 conservation and resources law enforcement officer of the
 
17 department of land and natural resources, of which the last five
 
18 or more years prior to retirement is credited in such a capacity,
 
19 then the sewer worker [or], water safety officer, conservation
 
20 and resources law enforcement officer of the department of land
 
21 and natural resources, shall be eligible to receive a normal
 
22 retirement benefit unreduced for age."
 

 
 
 
Page 9                                                     499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1                             PART II.
 
 2      SECTION 4.  The purpose of this Part is to allow the
 
 3 trustees of the office of Hawaiian affairs to participate in and
 
 4 receive the same benefits from the retirement benefit programs in
 
 5 which other elected salaried officials of the State participate.
 
 6      SECTION 5.  Chapter 88, Hawaii Revised Statutes, is amended
 
 7 by adding a new section to be appropriately designated and to
 
 8 read as follows:
 
 9      "88-    Service while a member of the board of trustees of
 
10 the office of Hawaiian affairs.  Notwithstanding any provision of
 
11 section 10-9 that may previously have precluded a member of the
 
12 board of trustees of the office of Hawaiian affairs from
 
13 participating as a member of the employees' retirement system,
 
14 any member of the board of trustees of the office of Hawaiian
 
15 affairs electing to become a member of the system, or any former
 
16 member of the board of trustees of the office of Hawaiian affairs
 
17 who is otherwise a member of the system, shall be entitled to
 
18 claim full membership service credit as a class A member of the
 
19 employees' retirement system for service as a trustee during the
 
20 period July 1, 1993 through June 30, 1999; provided that the
 
21 trustee or member who was formerly a trustee during that period
 
22 requests credit for that service as membership service and pays
 

 
 
 
Page 10                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1 for that membership service in accordance with section 88-59."
 
 2      SECTION 6.  Section 10-9, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "10-9  Salaries; benefit; expenses.  Members of the board:
 
 5      (1)  Shall receive an annual salary which shall be paid:
 
 6           (A)  Exclusively from revenue under section 10-13.5;
 
 7                and
 
 8           (B)  In equal amounts, beginning with the first pay
 
 9                period for state employees in November of the year
 
10                the member of the board is elected.
 
11           Effective July 1, 1993, and until the salary commission
 
12           makes recommendations for salary, the salary of the
 
13           chairperson of the board shall be $37,000 a year and
 
14           the salary of other members of the board shall be
 
15           $32,000 a year.  Any provision of law to the contrary
 
16           notwithstanding, all members of the board shall be
 
17           included in any benefit program generally applicable to
 
18           officers and employees of the State[ except for benefit
 
19           programs relating to retirements];
 
20      (2)  Shall be allowed transportation fares between islands
 
21           and abroad;
 
22      (3)  Shall be allowed personal expenses at the rates
 

 
 
 
Page 11                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1           specified by section 78-15, while attending board
 
 2           meetings or while on official business as authorized by
 
 3           the chairperson, when those board meetings or official
 
 4           business shall require a member to leave the island
 
 5           upon which the member resides; and
 
 6      (4)  Shall be allowed a protocol allowance to cover expenses
 
 7           incurred in the course of a member's duties and
 
 8           responsibilities."
 
 9      SECTION 7.  Section 87-5, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "87-5  Reimbursement for state contributions.  (a)  All
 
12 state and county agencies having control of special funds shall
 
13 reimburse the State for contributions made by the State pursuant
 
14 to section 87-4 on account of the employees in the agencies whose
 
15 compensation is paid in whole or part from the special funds.
 
16 All state and county agencies receiving federal funds, which may
 
17 be expended for the purpose of absorbing the contributions
 
18 payable by the State to the fund, shall set aside a portion of
 
19 the federal funds sufficient to reimburse the State for
 
20 contributions made by the State pursuant to section 87-4 on
 
21 account of the employees in the agencies whose compensation is
 
22 paid in whole or part from federal funds.
 

 
 
 
Page 12                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1      (b)  A former member of the board of trustees of the office
 
 2 of Hawaiian affairs who is a retired member of the employees'
 
 3 retirement system shall be covered by the public employees health
 
 4 fund only if and only to the extent that the office of Hawaiian
 
 5 affairs reimburses the State for contributions made by the State
 
 6 pursuant to section 87-4.5, 87-4.6, or 87-6.  All reimbursements
 
 7 made by the office of Hawaiian affairs, if any, shall be paid
 
 8 exclusively from revenue under section 10-13.5."
 
 9      SECTION 8.  Section 88-21, Hawaii Revised Statutes, is
 
10 amended by amending the definition of "employee" to read as
 
11 follows:
 
12      ""Employee":  any employee or officer of the State or any
 
13 county, including inspectors, principals, teachers and special
 
14 teachers, regularly employed in the public schools, cafeteria
 
15 managers and cafeteria workers, apprentices and on-the-job
 
16 trainees whether or not supported in whole or in part by any
 
17 federal grants, trustees of the office of Hawaiian affairs,
 
18 members of the legislature and other elective officers,
 
19 legislative employees who are employed on a full-time basis
 
20 during and between sessions, probationary and provisional
 
21 employees, any employee of the educational nonprofit public
 
22 corporation as provided in section 88-49.7, per diem employees
 

 
 
 
Page 13                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1 and others who are made eligible by reason of their employment to
 
 2 membership in the system by or pursuant to any other provision of
 
 3 law, but excluding:
 
 4      (1)  Per diem employees who elect to withdraw or not to
 
 5           become members as provided in section 88-42;
 
 6      (2)  Members of the legislature who do not elect to be
 
 7           members as provided in section 88-42;
 
 8      (3)  Persons excluded by rules of the board pursuant to
 
 9           section 88-43.
 
10      An individual is an employee during the period of a leave of
 
11 absence if the individual is in service, as defined in this part,
 
12 during the period of the leave of absence and the board shall
 
13 determine who are employees within the meaning of this part."
 
14      SECTION 9.  Section 88-42, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "88-42  Membership generally.  (a)  Except as otherwise
 
17 provided in this part, all employees of the Territory or any
 
18 county on July 1, 1945, shall be members of the system on such
 
19 date, and all persons who thereafter enter or reenter the service
 
20 of the State or any county shall become members at the time of
 
21 their entry or reentry.
 
22      (b)  Per diem workers shall become eligible for membership
 

 
 
 
Page 14                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1 on January 1, 1952, and all persons who are employed as per diem
 
 2 workers after December 31, 1951, shall become members of the
 
 3 system.  Any person who was a per diem worker before January 1,
 
 4 1952, shall not, so long as the person is employed as a per diem
 
 5 worker, be required to become a member or to remain a member if
 
 6 the person has elected before October 2, 1953, to withdraw as a
 
 7 member.
 
 8      (c)  Members of the legislature shall become eligible for
 
 9 membership on July 1, 1951.  Any member of the legislature in
 
10 service on July 1, 1951, or thereafter entering or reentering the
 
11 legislature, may become a member upon the legislator's own
 
12 election.
 
13      (d)  Members of the board of trustees of the office of
 
14 Hawaiian affairs shall become eligible for membership on July 1,
 
15 1999.  Any member of the board of trustees in service on July 1,
 
16 1999, or thereafter elected or reelected to the board of trustees
 
17 of the office of Hawaiian affairs, may become a member upon the
 
18 trustee's own election."
 
19      SECTION 10.  Section 88-47, Hawaii Revised Statutes, is
 
20 amended by amending subsection (a) to read as follows:
 
21      "(a)  There shall be three classes of members in the system
 
22 to be known as class A, class B, and class C, defined as follows:
 

 
 
 
Page 15                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1      (1)  Class A shall consist of members covered by section
 
 2           88-74(3)[,] and (4), those members whose salaries are
 
 3           set forth in sections 26-52 and 26-53, and their county
 
 4           counterparts, managing directors of administrative
 
 5           assistant to the mayor, and other department heads,
 
 6           including agency heads appointed by the mayor, first
 
 7           deputies appointed by the county attorney and
 
 8           prosecuting attorney, the county clerk and deputy
 
 9           county clerk of each county, the administrative
 
10           director of the courts, the deputy administrative
 
11           director of the courts, the executive director of the
 
12           labor and industrial relations appeals board, the
 
13           executive director of the Hawaii labor relations board,
 
14           investigators of the department of the attorney
 
15           general, narcotics enforcement investigators, water
 
16           safety officers no making the election under section
 
17           88-271, public safety investigations staff
 
18           investigators, and those members in service prior to
 
19           July 1, 1984, including those who are on approved leave
 
20           of absence, who are covered by Title II of the Social
 
21           Security Act on account of service creditable under
 
22           this part.  This class shall consist of:
 

 
 
 
Page 16                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

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

 
 
 
Page 17                                                    499
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1           (D)  Are former class C retirants who return to service
 
 2                requiring the retirant's active membership."
 
 3      SECTION 11.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 12.  This Act shall take effect on July 1, 1999.