Employees' Retirement System

Establishes a two-year time limit for claimants to file for
service-connected accidental death benefits and allows the
Employees' Retirement System to exclude interest on deficiency
payments made by contributory plan members.  (SD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 88, Hawaii Revised Statutes, is amended
 2 by adding to part II a new section to be appropriately designated
 3 and to read as follows:
 4      "88-    Accidental death claims.  (a)  An application for
 5 service-connected accidental death benefits may be filed with the
 6 board by or on behalf of the claimant as specified in sections
 7 88-85 and 88-286.  The application shall be filed no later than
 8 two years from the date of receipt of the written notification
 9 from the system.
10      (b)  If a claim is filed, the system shall obtain the
11 following:
12      (1)  A copy of the employer's report of the accident
13           submitted by the employer to the department of labor
14           and industrial relations, workers' compensation
15           division, and other reports relating to the accident;
16      (2)  A certified statement from the head of the department
17           in which the deceased member was employed, stating the
18           date, time, and place of the accident, and the nature
19           of the service being performed when the accident
20           occurred.  The statement shall also include an opinion

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                                     H.B. NO.           S.D. 1

 1           as to whether or not the accident was the result of
 2           wilful negligence on the deceased member's part;
 3      (3)  A copy of the latest position description of the
 4           deceased member's duties and responsibilities;
 5      (4)  A certified copy of the death certificate; and
 6      (5)  A copy of an autopsy report, if performed.
 7      (c)  If the medical board certifies that the death was the
 8 natural and proximate result of an accident occurring at some
 9 definite time and place while the member was in the actual
10 performance of duty, or that the death was due to the result of
11 some occupational hazard, the board shall decide that the death
12 was the result of an accident in the performance of duty and not
13 caused by wilful negligence on the part of the member.
14      (d)  Upon approval, benefits shall be paid effective the
15 date the claim was filed with the system, in accordance with
16 sections 88-85 and 88-286."
17      SECTION 2.  Section 88-83.5, Hawaii Revised Statutes, is
18 amended to read as follows:
19      "[[]88-83.5[]]  Benefit limitations.(a)  Notwithstanding
20 any other law to the contrary, the benefits payable to all
21 employees who first become members on or after January 1, 1990,
22 shall be subject to the limitations set forth in section 415 of
23 the Internal Revenue Code of 1986, as amended.

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                                     H.B. NO.           S.D. 1

 1      (b)  Notwithstanding any other law to the contrary, the
 2 benefits payable to all employees who first became members before
 3 January 1, 1990, shall be subject to the greater of the following
 4 limitations as provided in section 415(b)(10) of the Internal
 5 Revenue Code of 1986, as amended:
 6      (1)  The limitations set forth in section 415 of the
 7           Internal Revenue Code of 1986, as amended; or
 8      (2)  The benefit of the member without regard to any benefit
 9           increases pursuant to an amendment adopted after
10           October 14, 1987.
11      (c)  The system shall establish a benefit restoration plan
12 for the payment of retirement benefits as permitted under section
13 415(m) of the Internal Revenue Code of 1986, as amended, as
14 follows:
15      (1)  All retired members and beneficiaries of the system
16           whose pension has been limited by section 415 of the
17           Internal Revenue Code shall receive a monthly benefit
18           from the plan established pursuant to this subsection
19           that is equal to the difference between the retirement
20           benefit otherwise payable and the retirement benefit
21           payable because of section 415 of the Internal Revenue
22           Code of 1986, as amended;
23      (2)  Participation in the plan shall be determined for each

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                                     H.B. NO.           S.D. 1

 1           plan year and shall cease whenever the retirement
 2           benefit is not limited by section 415 of the Internal
 3           Revenue Code of 1986, as amended;
 4      (3)  The plan shall be funded on a plan-year-to-plan-year
 5           basis and shall not be used to pay any benefits payable
 6           in future years.  Upon the recommendation of the
 7           system's actuary, the required contribution amount
 8           shall be determined by the board of trustees and
 9           deposited in a separate fund from an allocation of
10           employer contribution amounts pursuant to this chapter;
11      (4)  The board of trustees shall administer the plan and may
12           make modifications to the benefits payable as may be
13           necessary to maintain the qualified status of the plan
14           under section 415(m) of the Internal Revenue Code of
15           1986, as amended."
16      SECTION 3.  Section 88-87, Hawaii Revised Statutes, is
17 amended to read as follows:
18      "88-87  Adjustment for deficiency in accumulated
19 contributions.  Upon retirement, the maximum retirement allowance
20 of any member whose accumulated contributions are deficient shall
21 be reduced by an amount which is the actuarial equivalent of the
22 amount of the deficiency.  A deficiency shall be the amount by
23 which a member's accumulated contributions fail to equal the

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                                     H.B. NO.           S.D. 1

 1 accumulated contributions which would be standing to the member's
 2 account had the member contributed at the full rate required by
 3 law [without reduction through withdrawals or advances].
 4 [Anticipated deficiencies] Deficiencies may be [repaid] paid by
 5 the member in advance of retirement, in which case [regular
 6 interest shall be computed to date payment is received in
 7 determining the amount of the deficiency.] the member's
 8 retirement allowance shall not be reduced."
 9      SECTION 4.  Statutory material to be repealed is bracketed.
10 New statutory material is underscored.
11      SECTION 5.  This Act shall take effect upon its approval.