REPORT TITLE:
ERS


DESCRIPTION:
Gives current deputy sheriffs of the Department of Public Safety
and conservation and resources law enforcement officers of the
Department of Land and Natural Resources the option of converting
from class C to class A members of the Employees' Retirement
System (ERS).  Allows deputy sheriffs and conservation and
resources law enforcement officers to retire without penalty
after 25 years of service in that capacity.  Provides that all
deputy sheriffs and conservation and resources law enforcement
officers hired after June 30, 1999, are to be designated class A
members. (SB1544 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1544
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                H.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      SECTION 1.  Section 88-21, Hawaii Revised Statutes, is
 
 2 amended by adding two new definitions to be appropriately
 
 3 inserted 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      "Deputy sheriff":  any regularly employed member of the
 
10 department of public safety whose principal duty is to perform
 
11 the duties specified in section 26-14.6(f)."
 
12      SECTION 2.  Section 88-45, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "88-45  Employee contributions.  (a)  After June 30, 1988,
 
15 each class A and class B member shall contribute seven and eight-
 
16 tenths per cent of the member's compensation to the annuity
 
17 savings fund[; provided that after] for service in that capacity.
 
18      (b)  After June 30, 1989, all firefighters, police officers,
 
19 corrections officers, investigators of the departments of the
 

 
Page 2                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1 prosecuting attorney and of the attorney general, narcotics
 
 2 enforcement investigators, water safety officers not making the
 
 3 election under section 88-271, and public safety investigations
 
 4 staff investigators shall contribute twelve and two-tenths per
 
 5 cent of their compensation to the annuity savings fund for
 
 6 service in that capacity.
 
 7      (c)  After June 30, 1999, all deputy sheriffs and
 
 8 conservation and resources law enforcement officers, unless the
 
 9 deputy sheriff or conservation and resources law enforcement
 
10 officer has opted not to become a class A member pursuant to Act
 
11    , Session Laws of Hawaii 1999, shall contribute twelve and
 
12 two-tenths per cent of their compensation to the annuity savings
 
13 fund for service in that capacity." 
 
14      SECTION 3.  Section 88-47, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "(a)  There shall be three classes of members in the system
 
17 to be known as class A, class B, and class C, defined as follows:
 
18      (1)  Class A shall consist of members covered by section
 
19           88-74(3), those members whose salaries are set forth in
 
20           sections 26-52 and 26-53, and their county
 
21           counterparts, managing directors or administrative
 
22           assistant to the mayor, and other department heads,
 
23           including agency heads appointed by the mayor, first
 

 
Page 3                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1           deputies appointed by the county attorney and
 
 2           prosecuting attorney, the county clerk and deputy
 
 3           county clerk of each county, the administrative
 
 4           director of the courts, the deputy administrative
 
 5           director of the courts, the executive [director]
 
 6           officer of the labor and industrial relations appeals
 
 7           board, the executive [director] officer of the Hawaii
 
 8           labor relations board, investigators of the department
 
 9           of the attorney general, narcotics enforcement
 
10           investigators, water safety officers not making the
 
11           election under section 88-271, public safety
 
12           investigations staff investigators, deputy sheriffs,
 
13           conservation and resources law enforcement officers,
 
14           and those members in service prior to July 1, 1984,
 
15           including those who are on approved leave of absence,
 
16           who are covered by Title II of the Social Security Act
 
17           on account of service creditable under this part.  This
 
18           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;
 

 
 
 
Page 4                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1           (B)  All employees who were members on July 1, 1957,
 
 2                who elected to be covered by the Social Security
 
 3                Act; and
 
 4           (C)  All former class A retirants who return to
 
 5                employment after June 30, 1984, requiring the
 
 6                retirant's active membership;
 
 7      (2)  Class B shall consist of all members who are not class
 
 8           A or class C members; and
 
 9      (3)  Except for members described in [section 88-47(a)(1),]
 
10           subsection (a)(1), class C shall consist of all
 
11           employees in positions covered by Title II of the
 
12           Social Security Act who:
 
13           (A)  First enter service after June 30, 1984;
 
14           (B)  Reenter service after June 30, 1984, without
 
15                vested benefit status as provided in section
 
16                88-96(b);
 
17           (C)  Make the election to become a class C member as
 
18                provided in part VII; [or]
 
19           (D)  Are former class C retirants who return to service
 
20                requiring the retirant's active membership[.]; or
 
21           (E)  Any deputy sheriff or conservation and resources
 
22                law enforcement officer who elected not to become
 
23                a class A member pursuant to Act    , Session Laws
 
24                of Hawaii 1999."
 

 
Page 5                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1      SECTION 4.  Section 88-74, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-74  Allowance on service retirement.  Upon retirement
 
 4 from service, a member shall receive a retirement allowance as
 
 5 follows:
 
 6      (1)  If the member has attained age fifty-five, a retirement
 
 7           allowance of two per cent of the member's average final
 
 8           compensation multiplied by the total number of years of
 
 9           the member's credited service as a class A [and] or
 
10           class B member, excluding any credited service as an
 
11           elective officer or legislative officer, plus a
 
12           retirement allowance of one and one-fourth per cent of
 
13           the member's average final compensation multiplied by
 
14           the total number of years of prior credited service as
 
15           a class C member; provided that:
 
16           (A)  After June 30, 1968, 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 a firefighter, police officer, or an
 
20                investigator of the department of the prosecuting
 
21                attorney;
 
22           (B)  After June 30, 1977, if the member has at least
 
23                ten years of credited service of which the last
 

 
Page 6                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1                five or more years prior to retirement is credited
 
 2                service as a corrections officer;
 
 3           (C)  After June 16, 1981, 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 an investigator of the department of
 
 7                the attorney general;
 
 8           (D)  After June 30, 1989, if the member has at least
 
 9                ten years of credited service of which the last
 
10                five or more years prior to retirement is credited
 
11                service as a narcotics enforcement investigator; 
 
12           (E)  After December 31, 1993, if the member has at
 
13                least ten years of credited service of which the
 
14                last five or more years prior to retirement is
 
15                credited service as a water safety officer; [and]
 
16           (F)  After June 30, 1994, if the member has at least
 
17                ten years of credited service[,] of which the last
 
18                five or more years prior to retirement [are] is
 
19                credited service as a public safety
 
20                [investigative] investigations staff investigator;
 
21                and
 
22           (G)  After June 30, 1999, if the member has at least
 
23                ten years of credited service of which the last
 

 
Page 7                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

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

 
Page 8                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1           the department of the prosecuting attorney,
 
 2           investigator of the department of the attorney general,
 
 3           narcotics enforcement investigator, public safety
 
 4           investigations staff investigator, sewer worker, deputy
 
 5           sheriff, conservation and resources law enforcement
 
 6           officer, or water safety officer, of which the last
 
 7           five or more years prior to retirement is credited
 
 8           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 each year of credited
 
22                service as a judge, three and one-half per cent of
 
23                the member's average final compensation in
 

 
Page 9                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

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

 
Page 10                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1           (A)  Irrespective of age, for each year of credited
 
 2                service as an elective officer, three and one-half
 
 3                per cent of the member's average final
 
 4                compensation as computed under section
 
 5                88-81(d)(1), in addition to an annuity that is the
 
 6                actuarial equivalent of the member's accumulated
 
 7                contributions allocable to the period of service;
 
 8                [and]
 
 9           (B)  Irrespective of age, for each year of credited
 
10                service as a legislative officer, three and one-
 
11                half per cent of the member's average final
 
12                compensation as computed under section
 
13                88-81(d)(2), in addition to an annuity that is the
 
14                actuarial equivalent of the member's accumulated
 
15                contributions allocable to the period of service;
 
16           (C)  Irrespective of age, for each year of credited
 
17                service as a judge, three and one-half per cent of
 
18                the member's average final compensation as
 
19                computed under section 88-81(d)(3), in addition to
 
20                an annuity that is the actuarial equivalent of the
 
21                member's accumulated contributions allocable to
 
22                the period of service; and
 

 
 
 
Page 11                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

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

 
 
 
Page 12                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1      SECTION 5.  Section 88-281, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  If a member has at least twenty-five years of credited
 
 4 service as a sewer worker [or as a], water safety officer, deputy
 
 5 sheriff, or conservation and resources law enforcement officer,
 
 6 of which the last five or more years prior to retirement is
 
 7 credited in such a capacity, then the sewer worker [or], water
 
 8 safety officer, deputy sheriff, or conservation and resources law
 
 9 enforcement officer, shall be eligible to receive a normal
 
10 retirement benefit unreduced for age."
 
11      SECTION 6.  (a)  Notwithstanding any other law to the
 
12 contrary, deputy sheriffs of the department of public safety and
 
13 conservation and resources law enforcement officers of the
 
14 department of land and natural resources who are in service prior
 
15 to the effective date of this Act may convert to class A
 
16 membership; provided that their membership service before July 1,
 
17 1999, shall remain at class C level.  An election form indicating
 
18 the option selected shall be filed with the board of trustees
 
19 prior to December 1, 1999.  The election filed with the board of
 
20 trustees shall be irrevocable.
 
21      (b)  All deputy sheriffs of the department of public safety
 
22 and conservation and resources law enforcement officers of the
 
23 department of land and natural resources hired after June 30,
 

 
Page 13                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        

 
 1 1999, shall be designated class A members of the employees'
 
 2 retirement system.
 
 3      SECTION 7.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 8.  This Act shall take effect on July 1, 1999.