REPORT TITLE:
ERS; Pension Accum. Fund



DESCRIPTION:
Amends ERS pensioners' bonus formula by calculating post
retirement allowances using compounded interest rather than
simple interest. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        834
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EMPLOYEES' RETIREMENT SYSTEM.



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

 1      SECTION 1.  Section 88-90, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-90  Post retirement allowances.(a)  There shall be
 
 4 payable to each person receiving any pension, annuity, or
 
 5 retirement allowance, a post retirement allowance which shall
 
 6 consist of an amount equivalent to one and one-half per cent of
 
 7 the monthly pension, annuity, or retirement allowance as
 
 8 originally computed, approved, and paid.  This benefit shall be
 
 9 added to the monthly pension, annuity, or retirement allowance on
 
10 the first day of July in each year following June 30, 1961, as
 
11 follows:
 
12      (1)  To each person receiving a pension, annuity, or
 
13           retirement allowance on June 30, 1961, payment of the
 
14           benefit shall commence on July 1, 1961, except that
 
15           after June 30, 1963, the monthly benefits payable under
 
16           this subsection shall be computed and paid on the basis
 
17           of the number of years that has elapsed since the
 
18           person entitled thereto first became the recipient of
 
19           the pension, annuity, or retirement allowance from
 

 
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 1           which the benefit is derived.
 
 2      (2)  To each person first receiving a pension, annuity, or
 
 3           retirement allowance after June 30, 1961, payment of
 
 4           the benefit shall commence on the first of July
 
 5           following the calendar year in which the payment of the
 
 6           pension, annuity, or retirement allowance is effective.
 
 7      (b)  After June 30, 1970, the post retirement allowance
 
 8 shall consist of an amount equivalent to two and one-half per
 
 9 cent of the monthly pension, annuity, or retirement allowance as
 
10 originally computed and paid.  This benefit shall be payable on
 
11 the first day of July in each year following June 30, 1970, as
 
12 follows:
 
13      (1)  To each person, who on June 30, 1970, was receiving a
 
14           post retirement allowance as described under subsection
 
15           (a) [hereof], payment of the benefit shall commence on
 
16           July 1, 1970.
 
17      (2)  To each person first receiving a pension, annuity, or
 
18           retirement allowance after December 31, 1968, payment
 
19           of the benefit shall commence on the first day of July
 
20           following the calendar year in which the payment of the
 
21           pension, annuity, or retirement allowance is effective.
 
22      (c)  After June 30, 1999, the post retirement allowance
 
23 shall consist of an amount equivalent to two and one-half per
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 cent of the monthly pension, annuity, or retirement allowance,
 
 2 including any previous post retirement allowance computed and
 
 3 paid.  This benefit shall be payable on the first day of July in
 
 4 each year following June 30, 1999, as follows:
 
 5      (1)  To each person, who on June 30, 1999, was receiving a
 
 6           post retirement allowance as described under subsection
 
 7           (b), payment of the benefit shall commence on July 1,
 
 8           1999.
 
 9      (2)  To each person first receiving a pension, annuity, or
 
10           retirement allowance after December 31, 1997, payment
 
11           of the benefit shall commence on the first day of July
 
12           following the calendar year in which the payment of the
 
13           pension, annuity, or retirement allowance is
 
14           effective."
 
15      SECTION 2.  New statutory material is underscored.
 
16      SECTION 3.  This Act shall take effect upon its approval.