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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
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.  Section 88-61, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-61  Termination of membership.(a) Except as otherwise
 
 4 provided by section 88-96, any member absent from service for
 
 5 four calendar years following the calendar year in which the
 
 6 member's employment terminated shall cease to be a member.
 
 7      (b)  Any member who withdraws the member's contributions,
 
 8 becomes a retirant, or dies, ceases to be a member as of the date
 
 9 of withdrawal, retirement, or death.
 
10 (c)  The membership of an elective officer [or judge] in the
 
11 system may be terminated upon election of the member to retire
 
12 whenever the allowance for such member reaches seventy-five per
 
13 cent of the member's average final compensation.  The member's
 
14 right to receive the retirement allowance prescribed in section
 
15 88-74 after the member's future separation from service as
 
16 provided in section 88-73 shall vest on the date of the election.
 
17 Upon the date of the election, the member shall be entitled to
 
18 receive the portion of the accumulated contributions, if any,
 
19 which would be required to be returned to the member under
 

 
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 1 section 88-74(3)(B) as if the member's retirement allowance had
 
 2 commenced on that date, and after the date of election the member
 
 3 shall not be allowed or required to make any future
 
 4 contributions."
 
 5      SECTION 2.  Section 88-73, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "88-73  Service retirement.  Retirement of a member on a
 
 8 service retirement allowance shall be made by the board of
 
 9 trustees or its designee as follows:
 
10      (1)  Any member who has at least five years of credited
 
11           service and who has attained age fifty-five or any
 
12           member who has at least twenty-five years of credited
 
13           service or any member who has at least ten years of
 
14           credited service, including service as a judge, an
 
15           elective officer, or the chief clerk, assistant clerk,
 
16           sergeant at arms, or assistant sergeant at arms of
 
17           either house of the legislature, may retire upon
 
18           written application to the board specifying on what
 
19           date, not less than thirty days nor more than ninety
 
20           days subsequent to the execution and filing thereof,
 
21           the member desires to be retired.  In the event of the
 
22           death of a member after the date of the filing of the
 
23           member's written application to retire, the designated
 

 
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 1           beneficiary, otherwise the personal representative of
 
 2           the member's estate, shall receive the allowance under
 
 3           the option selected by the member which would have been
 
 4           payable had the member retired, and the benefits paid
 
 5           to the beneficiary or representative shall be computed
 
 6           as though the member had died on or after the effective
 
 7           date of the member's retirement;
 
 8      (2)  Any member of the legislature who attains age sixty-
 
 9           five may retire and receive a service retirement
 
10           allowance although the member continues to fill the
 
11           elective position;
 
12      (3)  For the purpose of computing or determining benefits
 
13           for an elective officer [or judge], or [any] the
 
14           beneficiary of [either,] the elective officer, the date
 
15           upon which the elective officer [or judge] elected to
 
16           retire, as provided by section 88-61(c), after
 
17           attaining an allowance of seventy-five per cent of
 
18           average final compensation, shall be used as the
 
19           effective date of retirement; provided that the
 
20           elective officer [or judge] may continue in active
 
21           service, but shall not receive a retirement allowance
 
22           until termination of active service; however, upon
 
23           leaving active service the elective officer [or judge]
 

 
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 1           shall receive the retirement allowance provided for in
 
 2           section 88-74, together with the post retirement
 
 3           allowances provided for in section 88-90, which post
 
 4           retirement allowances shall be computed from the date
 
 5           of the election as though the elective officer [or
 
 6           judge] had left active service on that day; and
 
 7      (4)  In the case of a class A or B member who also has prior
 
 8           credited service under part VII, total credited service
 
 9           as a class A, class B, and class C member shall be used
 
10           to determine the eligibility for retirement allowance."
 
11      SECTION 3.  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 B
 
20           member, excluding any credited service as an elective
 
21           officer or legislative officer, plus a retirement
 
22           allowance of one and one-fourth per cent of the
 
23           member's average final compensation multiplied by the
 

 
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 1           total number of years of prior credited service as a
 
 2           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
 

 
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 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 investigative
 
 7                staff investigator;
 
 8           then for each year of service as a firefighter, police
 
 9           officer, corrections officer, investigator of the
 
10           department of the prosecuting attorney, investigator of
 
11           the department of the attorney general, narcotics
 
12           enforcement investigator, water safety officer, or
 
13           public safety investigations staff investigator, the
 
14           retirement allowance shall be two and one-half per cent
 
15           of the member's average final compensation.  The
 
16           maximum retirement allowance for those members shall
 
17           not exceed eighty per cent of the member's average
 
18           final compensation.  If the member has not attained age
 
19           fifty-five, the member's retirement allowance shall be
 
20           computed as though the member had attained age fifty-
 
21           five, reduced in accordance with factors of actuarial
 
22           equivalence adopted by he the board upon the advice of
 
23           the actuary; provided that no reduction shall be made
 
24           if the member has at least twenty-five years of
 

 
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 1           credited service as a firefighter, police officer,
 
 2           corrections officer, investigator of the department of
 
 3           the prosecuting attorney, investigator of the
 
 4           department of the attorney general, narcotics
 
 5           enforcement investigator, public safety investigations
 
 6           staff investigator, sewer worker, or water safety
 
 7           officer, of which the last five or more years prior to
 
 8           retirement is credited service in such capacities;
 
 9      (2)  If the member has made voluntary additional
 
10           contributions for the purchase of an additional annuity
 
11           and has not applied for a refund as permitted by
 
12           section 88-72, the member may accept the refund at the
 
13           time of retirement or, in lieu thereof, receive in
 
14           addition to the retirement allowance provided in
 
15           paragraph (1), an annuity that is the actuarial
 
16           equivalent of the additional contributions with regular
 
17           interest;
 
18      (3)  If the member has credited service as a judge, the
 
19           member's retirement allowance shall be computed on the
 
20           following basis:
 
21           (A)  [Irrespective of age, for] For each year of
 
22                credited service as a judge, up to June 30, 1999,
 

 
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 1                three and one-half per cent of the member's
 
 2                average final compensation in addition to an
 
 3                annuity; and for each year of credited service as
 
 4                a judge after June 30, 1999, two per cent of the
 
 5                member's average final compensation in addition to
 
 6                an annuity; that is the actuarial equivalent of
 
 7                the member's accumulated contributions allocable
 
 8                to the period of such service; and
 
 9           (B)  For all other credited service, as provided in
 
10                paragraphs (1), (2), and (4).  No allowance shall
 
11                exceed seventy-five per cent of the member's
 
12                average final compensation.  If the allowance
 
13                exceeds this limit, it shall be adjusted by
 
14                reducing the annuity included in subparagraph (A),
 
15                and the portion of the accumulated contributions
 
16                specified in that subparagraph in excess of the
 
17                requirements of the reduced annuity shall be
 
18                returned to the member.
 
19           The allowance for judges under this paragraph, together
 
20           with the retirement allowance provided by the federal
 
21           government for similar service, shall in no case exceed
 
22           seventy-five per cent of the member's average final
 
23           compensation; or
 

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

 
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 1                computed under section 88-81(d)(3), in addition to
 
 2                an annuity that is the actuarial equivalent of the
 
 3                member's accumulated contributions allocable to
 
 4                the period of service; and
 
 5           (D)  For each year of credited service not included in
 
 6                subparagraph (A), (B), or (C), the average final
 
 7                compensation as computed under section 88-81(d)(4)
 
 8                shall be multiplied by two per cent, two and one-
 
 9                half per cent, or one and one-quarter per cent, as
 
10                applicable to the credited service earned as a
 
11                class A, B, or C member, respectively.
 
12           The total retirement allowance shall not exceed
 
13           seventy-five per cent of the member's highest average
 
14           final compensation calculated under section
 
15           88-81(d)(1), (2), (3), or (4).  If the allowance
 
16           exceeds this limit, it shall be adjusted by reducing
 
17           any annuity accrued under subparagraphs (A), (B), and
 
18           (C) and the portion of the accumulated contributions
 
19           specified in these subparagraphs in excess of the
 
20           requirements of the reduced annuity shall be returned
 
21           to the member.  If a member has service credit as an
 
22           elective officer or as a legislative officer in
 
23           addition to service credit as a judge, then the
 

 
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 1           retirement benefit calculation contained in this
 
 2           paragraph shall supersede the formula contained in
 
 3           paragraph (3)."
 
 4      SECTION 4.  Section 602-2, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "602-2 Salary, supreme court justices.  Effective
 
 7 January 1, 1989, the salary of the chief justice of the supreme
 
 8 court shall be $90,699 a year and the salary of each associate
 
 9 justice of the supreme court shall be $89,699 a year.  Effective
 
10 [January 1, 1990,] July 1, 1999, the salary of the chief justice
 
11 of the supreme court shall be [$94,780] $100,581 a year and the
 
12 salary of each associate justice of the supreme court shall be
 
13 [$93,780] $99,520 a year[.];  provided that upon being retained
 
14 according to Article VI, section 3 of the State Constitution, the
 
15 salary shall be $106,615 a year for the chief justice of the
 
16 supreme court and $105,490 a year for each associate justice of
 
17 the supreme court.  For each fiscal biennium beginning July 1,
 
18 2001, the salary of the chief justice of the supreme court and of
 
19 each assoiate justice of the supreme court shall be adjusted in
 
20 accordance with the Consumer Price Index-Urban Wage Earners and
 
21 Clerical Workers."
 
22      SECTION 5.  Section 602-52, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "602-52  Salary.  Effective January 1, 1989, the salary of
 
 2 the chief judge of the intermediate appellate court shall be
 
 3 $87,199 a year and the salary of each associate judge shall be
 
 4 $85,699 a year.  Effective [January 1, 1990,] July 1, 1999, the
 
 5 salary of the chief judge of the intermediate appellate court
 
 6 shall be [$91,280] $96,867 a year and the salary of each
 
 7 associate judge shall be [$89,780] $95,275 a year[.]; provided
 
 8 that upon being retained according to Article VI, section 3 of
 
 9 the State Constitution, the salary shall be $102,678 a year for
 
10 the chief judge of the intermediate appellate court and $100,990
 
11 a year for each associate judge of the intermediate appellate
 
12 court.  For each fiscal biennium beginning July 1, 2001, the
 
13 salary of the chief judge of the intermediate applellate court
 
14 and of each associate judge of the intermediate appellate court
 
15 shall be adjusted in accordance with the Consumer Price Index-
 
16 Urban Wage Earners and Clerical Workers."
 
17      SECTION 6.  Section 603-5, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "603-5 Salary of circuit court judges.  Effective
 
20 January 1, 1989, the salary of each circuit court judge of the
 
21 various circuit courts of the State shall be $82,699 a year.
 
22 Effective [January 1, 1990,] July 1, 1999, the salary of each
 
23 circuit court judge of the various circuit courts of the State
 

 
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 1 shall be [$86,780] $92,092 a year[.]; provided that upon being
 
 2 retained according to Article VI, section 3 of the State
 
 3 Constitution, the salary shall be $97,616 a year for each circuit
 
 4 court judge.  For each fiscal biennium beginning July 1, 2001,
 
 5 the salary of each circuit court judge shall be adjusted in
 
 6 accordance with the Consumer Price Index-Urban Wage Earners and
 
 7 Clerical Workers."
 
 8      SECTION 7.  Section 604-2.5, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "604-2.5  Salary of district judges.  Effective January 1,
 
11 1989, the salary of each district court judge of the various
 
12 district courts of the State shall be $77,699 a year.  Effective
 
13 [January 1, 1990,] July 1, 1999, the salary of each district
 
14 court judge of the various district courts of the State shall be
 
15 [$81,780] $86,786 a year[.]; provided that upon being retained
 
16 according to Article VI, section 3 of the State Constitution, the
 
17 salary shall be $91,991 a year for each district court judge.
 
18 For each fiscal biennium beginning July 1, 2001, the salary of
 
19 each district court judge shall be adjusted in accordance with
 
20 the Consumer Price Index-Urban Wage Earners and Clerical
 
21 Workers.      Whenever the chief justice appoints a district
 
22 court judge of any of the various district courts of the State to
 
23 serve temporarily as a circuit court judge of any of the various
 

 
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 1 circuit courts of the State, the judge shall receive per diem
 
 2 compensation for the days on which actual service is rendered
 
 3 based on the monthly rate of compensation paid to a circuit court
 
 4 judge.  For the purpose of determining per diem compensation in
 
 5 this section, a month shall be deemed to consist of twenty-one
 
 6 days."
 
 7      SECTION 8.  There is appropriated out of the general
 
 8 revenues of the State of Hawaii the sum of $              or so
 
 9 much thereof as may be necessary for fiscal year 1999-2000, for
 
10 judicial salaries.
 
11      The sums appropriated shall be expended by the judiciary for
 
12 the purposes of this Act.
 
13      SECTION 9.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 10.  This Act shall take effect upon its approval
 
16 and upon ratification of a constitutional amendment to repeal
 
17 certain provisions relating to judicial compensation to permit
 
18 judicial compensation to be administered in conformity with this
 
19 Act; provided that the adjustments tied to the Consumer Price
 
20 Index-Urban Wage Earners and Clerical Workers referenced in
 
21 sections 4, 5, 6 and 7 of this Act shall expire on June 30, 2003.
 
22      SECTION 11.  If any provision of this Act, or the
 
23 application thereof to any person or circumstance is held
 
24 invalid, the invalidity does not affect other provisions or
 
25 applications of the Act which can be given effect without the
 

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 1 invalid provision or application, and to this end the provisions
 
 2 of this Act are severable.
 
 3 
 
 4                           INTRODUCED BY:  _______________________
 

 
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