REPORT TITLE:
ERS - OHA Trustees

DESCRIPTION:
Provides retirement benefits for the Trustees of the Office of
Hawaiian Affairs.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO RETIREMENT BENEFITS FOR TRUSTEES OF THE OFFICE OF
   HAWAIIAN AFFAIRS.



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

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

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

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

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

 
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 1 law, but excluding:
 
 2      (1)  Per diem employees who elect to withdraw or not to
 
 3           become members as provided in section 88-42;
 
 4      (2)  Members of the legislature who do not elect to be
 
 5           members as provided in section 88-42;
 
 6      (3)  Persons excluded by rules of the board pursuant to
 
 7           section 88-43.
 
 8      An individual is an employee during the period of a leave of
 
 9 absence if the individual is in service, as defined in this part,
 
10 during the period of the leave of absence and the board shall
 
11 determine who are employees within the meaning of this part."
 
12      SECTION 6.  Section 88-42, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "88-42  Membership generally.  (a)  Except as otherwise
 
15 provided in this part, all employees of the Territory or any
 
16 county on July 1, 1945, shall be members of the system on such
 
17 date, and all persons who thereafter enter or reenter the service
 
18 of the State or any county shall become members at the time of
 
19 their entry or reentry.
 
20      (b)  Per diem workers shall become eligible for membership
 
21 on January 1, 1952, and all persons who are employed as per diem
 
22 workers after December 31, 1951, shall become members of the
 
23 system.  Any person who was a per diem worker before January 1,
 

 
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 1 1952, shall not, so long as the person is employed as a per diem
 
 2 worker, be required to become a member or to remain a member if
 
 3 the person has elected before October 2, 1953, to withdraw as a
 
 4 member.
 
 5      (c)  Members of the legislature shall become eligible for
 
 6 membership on July 1, 1951.  Any member of the legislature in
 
 7 service on July 1, 1951, or thereafter entering or reentering the
 
 8 legislature, may become a member upon the legislator's own
 
 9 election.
 
10      (d)  Members of the board of trustees of the office of
 
11 Hawaiian affairs shall become eligible for membership on July 1,
 
12 1999.  Any member of the board of trustees in service on July 1,
 
13 1999, or thereafter elected or reelected to the board of trustees
 
14 of the office of Hawaiian affairs, may become a member upon the
 
15 trustee's own election."
 
16      SECTION 7.  Section 88-47, Hawaii Revised Statutes, is
 
17 amended by amending subsection (a) to read as follows:
 
18      "(a)  There shall be three classes of members in the system
 
19 to be known as class A, class B, and class C, defined as follows:
 
20      (1)  Class A shall consist of members covered by section
 
21           88-74(3)[,] and (4), those members whose salaries are
 
22           set forth in sections 26-52 and 26-53, and their county
 
23           counterparts, managing directors of administrative
 

 
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 1           assistant to the mayor, and other department heads,
 
 2           including agency heads appointed by the mayor, first
 
 3           deputies appointed by the county attorney and
 
 4           prosecuting attorney, the county clerk and deputy
 
 5           county clerk of each county, the administrative
 
 6           director of the courts, the deputy administrative
 
 7           director of the courts, the executive director of the
 
 8           labor and industrial relations appeals board, the
 
 9           executive director of the Hawaii labor relations board,
 
10           investigators of the department of the attorney
 
11           general, narcotics enforcement investigators, water
 
12           safety officers no making the election under section
 
13           88-271, public safety investigations staff
 
14           investigators, and those members in service prior to
 
15           July 1, 1984, including those who are on approved leave
 
16           of absence, who are covered by Title II of the Social
 
17           Security Act on account of service creditable under
 
18           this part.  This class shall consist of:
 
19           (A)  All employees who enter membership after June 30,
 
20                1957, except employees in positions to which
 
21                coverage under Title II of the Social Security Act
 
22                is not extended;
 
23           (B)  All employees who were members on July 1, 1957,
 

 
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 1                who elected to be covered by the Social Security
 
 2                Act; and
 
 3           (C)  All former class A retirants who return to
 
 4                employment after June 30, 1984, requiring the
 
 5                retirant's active membership;
 
 6      (2)  Class B shall consist of all members who are not class
 
 7           A or class C members; and
 
 8      (3)  Except for members described in section 88-47(a)(1),
 
 9           class C shall consist of all employees in positions
 
10           covered by Title II of the Social Security Act who:
 
11           (A)  First enter service after June 30, 1984;
 
12           (B)  Reenter service after June 30, 1984, without
 
13                vested benefit status as provided in section 88-
 
14                96(b);
 
15           (C)  Make the election to become a class C members as
 
16                provided in part VII; or
 
17           (D)  Are former class C retirants who return to service
 
18                requiring the retirant's active membership."
 
19      SECTION 8.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 9.  This Act shall take effect on July 1, 1999.