Report Title:

Deferred Compensation; ERS Transfer

 

Description:

Transfers the Deferred Compensation program to the Employees' Retirement System. Requires the Employees' Retirement System to pay interest on pensions that are not processed and issued within three months of a member's retirement. (SD1)

 

THE SENATE

S.B. NO.

1038

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

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:

SECTION 1. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"88- Interest accrual and payment on late-processed pension. Upon the actual retirement date of a member, the system shall have ninety days to process the member's retirement allowance in the manner specified in the member's application for retirement. If payment of a retirement allowance by the system has not commenced within the ninety-day period, the system shall be responsible for the payment to the retirant of any interest accrued on the total amount of the delinquent retirement allowance that should have been paid to the retirant from the ending of the ninety-day period to the day that actual payment begins. For the purposes of this section, interest on retirement benefits shall be calculated pursuant to section 478-2."

SECTION 2. Section 88E-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]88E-3[]] Board of trustees. The authority to establish the plan and make this chapter effective is vested in the board of trustees[. The board shall be placed within the department of human resources development for administrative purposes.] of the employees' retirement system of the State of Hawaii.

The board shall adopt such rules to carry out this chapter in accordance with chapter 91. The board may engage services, as necessary, to establish, administer, or maintain the plan under its direction. An administrator may be engaged only after a solicitation of proposals from interested persons in accordance with specifications deemed appropriate by the board."

SECTION 3. Act 253, Session Laws of Hawaii 2000, section 126, is amended by amending subsection (a) of section 88E-3, Hawaii Revised Statutes, to read as follows:

"(a) The authority to establish the plan and implement this chapter is vested in the board of trustees[. The board shall be placed within the department of human resources development for administrative purposes.] of the employees' retirement system of the State of Hawaii."

SECTION 4. Section 88E-4, Hawaii Revised Statutes, is repealed.

["88E-4 Composition of the board of trustees. The board of trustees shall consist of seven members as follows:

(1) The director of human resources development of the State who shall serve as its chairperson;

(2) The director of finance of the State or a designated representative, ex officio;

(3) Five other persons, three of whom shall be public employees and represent employee interests."]

SECTION 5. Section 88E-5, Hawaii Revised Statutes, is repealed.

["[88E-5] Appointment and terms. Except for the directors of human resources development and finance, the members of the board shall be nominated and, by and with the advice and consent of the senate, appointed by the governor and shall serve terms of four years each; provided that of the trustees first appointed upon establishment of the board one shall be appointed for one year, one shall be appointed for two years, one shall be appointed for three years, and two shall be appointed for four years.

A vacancy on the board shall be filled by appointment of the governor. The person appointed to fill a vacancy shall serve for the remainder of the unexpired term. If by the end of a term a trustee is not reappointed or a successor is not appointed, the trustee shall serve until the trustee's successor is appointed.

Membership on the board shall not be deemed incompatible with the holding of any other public employment."]

SECTION 6. Section 88E-6, Hawaii Revised Statutes, is repealed.

["[88E-6] Compensation and expenses. Each trustee shall serve without compensation but shall be reimbursed from the fund for any necessary expense incurred in the performance of the trustee's duties."]

SECTION 7. Section 88E-7, Hawaii Revised Statutes, is repealed.

["[88E-7] Legal advisor. The attorney general shall be the legal advisor of the board."]

SECTION 8. Section 88F-4, Hawaii Revised Statutes, is repealed.

["[88F-4] Compensation and expenses. Each trustee shall serve without compensation but shall be reimbursed by the plan for any necessary expense incurred in the performance of the trustee's duties pertaining to the plan."]

SECTION 9. Section 88F-5, Hawaii Revised Statutes, is repealed.

["[88F-5] Legal adviser. The attorney general shall be the legal adviser of the board."]

SECTION 10. Transfer of records. Effective July 1, 2001, all records made, used, acquired, or held by the department of human resources development relating to the functions transferred to the employees' retirement system by this Act shall be transferred with the functions to which they relate.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect on July 1, 2001.