REPORT TITLE:
Retirement Sys.; Class C to A


DESCRIPTION:
Allows any class C member of the ERS who elected to become a
class C member to reenter class A membership as of 1/1/00
provided the member returns all retirement and post retirement
contributions, including interest, refunded after the election to
convert to class C membership, notify the board in writing by
12/1/99, and satisfy all other requirements for class A
membership.  Also allows any class A member to elect to enter
class C membership.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            763         
HOUSE OF REPRESENTATIVES                H.B. NO.           
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 88-47, 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
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           88-271, public safety investigations staff
 
 2           investigators, and those members in service prior to
 
 3           July 1, 1984, including those who are on approved leave
 
 4           of absence, who are covered by Title II of the Social
 
 5           Security Act on account of service creditable under
 
 6           this part.  This class shall consist of:
 
 7           (A)  All employees who enter membership after June 30,
 
 8                1957, except employees in positions to which
 
 9                coverage under Title II of the Social Security Act
 
10                is not extended;
 
11           (B)  All employees who were members on July 1, 1957,
 
12                who elected to be covered by the Social Security
 
13                Act; [and]
 
14           (C)  All former class A retirants who return to
 
15                employment after June 30, 1984, requiring the
 
16                retirant's active membership;
 
17           (D)  Any former class A member who previously elected
 
18                to enter class C, who chooses to reenter class A
 
19                membership effective January 1, 2000; provided the
 
20                member who chooses to reenter class A membership:
 
21                (i)  Agrees to return and does return to the
 
22                     system all retirement and post retirement
 
23                     contributions that were refunded to the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                     member upon the member's election to enter
 
 2                     class C;
 
 3               (ii)  Shall repurchase all the years of service as
 
 4                     a class C member in accordance with the
 
 5                     procedures under section 88-59 and at the
 
 6                     member's current compensation level to regain
 
 7                     standing as a contributory member;
 
 8              (iii)  Shall have, by December 1, 1999, notified the
 
 9                     board of trustees in writing of the member's
 
10                     intention to return to class A membership;
 
11                     and
 
12               (iv)  Satisfies all other requirements for class A
 
13                     membership by January 1, 2000;
 
14                and
 
15           (E)  Any class C member who was never a member of
 
16                class A who chooses to enter class A membership
 
17                effective January 1, 2000; provided the member who
 
18                chooses to enter class A membership complies with
 
19                the requirements of subparagraph (D)(ii), (iii),
 
20                and (iv);
 
21      (2)  Class B shall consist of all members who are not class
 
22           A or class C members; and
 
23      (3)  Except for members described in section 88-47(a)(1),
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           class C shall consist of all employees in positions
 
 2           covered by Title II of the 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[.]; or
 
11           (E)  Chooses to reenter class C from class A or class B
 
12                membership effective January 1, 2000."
 
13      SECTION 2.  Section 88-271, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "88-271  Election.(a)  Any class A or class B member who:
 
16      (1)  Is in service on June 30, 1984, or who returns to
 
17           service after June 30, 1984, and has vested benefit
 
18           status as provided in section 88-96(b); and
 
19      (2)  Is in a position covered by Title II of the Social
 
20           Security Act, may elect to become a class C member
 
21           effective January 1, 1985; or upon return to service,
 
22           by filing an election form with the board.
 
23 The election shall be made prior to December 1, 1984, or within
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 thirty days of return to service and shall be irrevocable.  A
 
 2 class A or class B member who makes such an election shall be
 
 3 refunded all accumulated contributions and shall not be required
 
 4 to make further contributions upon becoming a class C member.
 
 5 The refund shall be made by March 31, 1985, or within ninety days
 
 6 after return to service.  Upon the effective date of the
 
 7 election, all rights as a class A or class B member shall be
 
 8 extinguished.
 
 9      (b)  After June 30, 1984, a class A or class B member, who
 
10 returns to service but does not have vested benefit status as
 
11 provided in section 88-96(b), shall become a class C member upon
 
12 return to service and shall be refunded all accumulated
 
13 contributions.
 
14      (c)  Any class A or class B member may elect to become a
 
15 class C member effective January 1, 2000; or upon return to
 
16 service, by filing an election form with the board.  The election
 
17 shall be made by December 1, 1999, and shall be irrevocable;
 
18 provided that a class A or class B member who makes this election
 
19 shall be refunded all accumulated contributions and shall not be
 
20 required to make further contributions upon becoming a class C
 
21 member.  The refund shall be made by March 31, 2000.  Upon the
 
22 effective date of the election, all rights as a class A or class
 
23 B member shall be extinguished.
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (d)  Any class C member may elect to become a class A or
 
 2 class B member; provided the member complies with subsection (c)
 
 3 and section 88-47(a)(1)(D) or (E), as applicable.
 
 4      [(c)] (e)  The board shall provide information explaining
 
 5 the effects of the election described in [subsection] subsections
 
 6 (a)[.], (c), and (d).
 
 7      [(d)] (f)  Any water safety officer who is in service on
 
 8 July 1, 1994, may elect to become a class C member by filing an
 
 9 election form with the board.  The election shall be made prior
 
10 to September 1, 1994, and shall be irrevocable.  The accumulated
 
11 contributions of a water safety officer who makes this election
 
12 shall be returned to the water safety officer through payroll
 
13 adjustments or another procedure as determined by the board.
 
14 Upon the effective date of the election, all rights as a class A
 
15 member shall be extinguished.  All persons first employed as a
 
16 water safety officer after July 1, 1994, shall be class C
 
17 members.  A water safety officer who chooses to enter class A
 
18 membership after December 31, 1999, shall comply with the
 
19 requirements of section 88-47."
 
20      SECTION 2.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 

 
 
 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 3.  This Act shall take effect upon its approval.
 
 2 
 
 3                              INTRODUCED BY:______________________