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HOUSE OF REPRESENTATIVES

H.B. NO.

1156

TWENTY-SECOND LEGISLATURE, 2003

 

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

"88-3 Payment on death of pensioner. Whenever any person receiving a pension from the State or from any county thereof dies, the amount next payable shall be prorated from the last payment date up to and including the date of death, and such prorated amount shall be paid to (1) such person as may have been designated by the pensioner during the pensioner's lifetime in a statement filed with the officer charged with payment of the pension, or, (2) if no such designation has been made and filed, the personal representative of the estate of the pensioner; provided, however, that, effective January 1, 2003, whenever a person receiving a pension from the [state retirement] system dies, the full monthly pension [shall be payable] for the month in which the pensioner [is deceased. The sum shall be paid to such person as may have been designated by the pensioner during the pensioner's lifetime in a statement filed with the officer charged with payment of the pension, or, if no such designation has been made and filed, then the amount so due shall be paid to the personal representative of the estate of the pensioner.] died shall be payable to (1) such person as may have been designated by the pensioner during the pensioner's lifetime in a statement filed with the officer charged with payment of the pension, or, (2) if no such designation has been made and filed, the personal representative of the estate of the pensioner; provided, further, that, effective July 1, 2003, whenever a person receiving a pension from the system dies, the full monthly pension for the month in which the pensioner died shall be payable to the pensioner."

SECTION 2. Section 88-29, Hawaii Revised Statutes, is amended to read as follows:

"88-29 Officers, employees, legal adviser. The board of trustees shall elect from its membership a chairperson, and by a majority vote of all its members, shall appoint an administrator and a chief investment officer who shall be exempt from chapter[s] 76 [and 77] and serve under and at the pleasure of the board. Effective July 1, 1992, the salary of the administrator shall be set by the board [within the range established for deputy directors.] and approved by the governor. The board shall engage actuarial and other services as shall be required to transact the business of the system. The compensation for all services engaged by the board, and all other expenses of the board necessary for the operation of the system, shall be paid at rates and in amounts the board shall approve.

The attorney general or an appointed representative may serve as legal adviser to the board of trustees or the board of trustees may select its own legal counsel."

SECTION 3. Section 88-73, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) For the purpose of computing or determining benefits for an elective officer or judge, or any beneficiary of either, the date upon which the elective officer or judge makes an election to retire, as provided by section 88-61(c), after attaining an allowance of seventy-five per cent of the member's average final compensation, shall be used as the date the member is eligible to receive a service retirement benefit. The elective officer or judge may continue in active service, but shall not receive a retirement allowance until termination of active service[; provided further that upon]. Upon leaving active service the elective officer or judge shall receive the retirement allowance [effective on the first day of a month following the member's termination,] provided for in section 88-74, together with the post retirement allowances provided for in section 88-90[.] , effective on the first day of a month except the month of December when retirement benefits shall be effective on the first or last day of the month. Post retirement allowances shall be computed from the date of the election as though the elective officer or judge had left active service on that day."

SECTION 4. Section 88-81, Hawaii Revised Statutes, is amended to read as follows:

"88-81 Average final compensation. (a) Average final compensation is the average annual compensation pay or salary upon which a member has made contributions as required by sections 88-45 and 88-46.

(b) The average final compensation of members [retiring prior to January 1, 2003,] shall be calculated as follows:

    1. For employees who become members prior to January 1, 1971:
    2. (A) During the member's five highest paid years of credited service, including vacation pay, or the three highest paid years of credited service excluding vacation pay, whichever is greater; or

      (B) If the member has less than three years of credited service, during the member's actual years of credited service.

    3. For employees who become members on or after January 1, 1971:

(A) During the member's three highest paid years of credited service, excluding vacation pay; or

(B) If the member has less than three years of credited service, during the member's actual years of credited service.

[(c) The average final compensation of members retiring after December 31, 2002, shall be calculated as follows:

    1. For employees who become members prior to January 1, 1971:
    2. (A) During the member's five highest paid calendar years of service including vacation pay, or the last sixty months of credited service including vacation pay, whichever is greater; or

      (B) During the member's three highest paid calendar years of service excluding vacation pay, or the last thirty-six months of credited service excluding vacation pay, whichever is greater; or

      (C) During the member's actual years of credited service, if the member has less than three years of credited service;

    3. For employees who become members on or after January 1, 1971:
    4. (A) During the member's three highest paid calendar years of service excluding vacation pay or the last thirty-six months of credited service excluding vacation pay, whichever is greater; or

      (B) During the member's actual years of credited service, if the member has less than three years of credited service; and

    5. If a member has credited service as a nine, ten, or eleven-month employee and is paid over twelve months,

(A) During the member's three highest paid school contract years of service; or

(B) During the member's actual years of credited service, if the member has less than three years of credited service.]

[(d)] (c) In computing the compensation of a judge, the compensation paid to the judge by the United States as well as the by the Territory shall be included.

[(e)] (d) For service rendered as a member of the legislature from and after November 5, 1968, the actual annual salary of a member shall be the only amount used for determining the member's average final compensation. For service rendered as a member of the legislature prior to November 5, 1968, and after admission of this State into the Union, the annual compensation of a member shall be computed, for the purpose of determining the member's average final compensation, as follows: during a year in which a general session was held, it shall be deemed to have been an amount equal to four times the salary of a member of the legislature for a general session; and during a year in which a budget session was held, it shall be deemed to have been an amount equal to six times the salary of a member of the legislature for a budget session. For service rendered as a member of the legislature prior to the admission of this State into the Union, the annual compensation of a member shall be deemed to have been four times the salary of a member of the legislature for a regular session for each year during the member's term of office.

[(f)] (e) If a member has credited service rendered as an elective officer or as a legislative officer, the member's average final compensation shall be computed separately for each category of service as follows:

    1. For the three highest paid years of credited service as an elective officer, or if the member has less than three years of credited service in that capacity, then the member's actual years of credited service;
    2. For the three highest paid years of credited service as a legislative officer, or if the member has less than three years of credited service in that capacity, then the member's actual years of credited service;

(3) For the three highest paid years of credited service as a judge, or if the member has less than three years of credited service in that capacity, then the member's actual years of credited service; and

(4) For the three highest paid years of credited service not included in paragraph (1), (2), or (3), or if the member has less than three years of credited service in that capacity, then the member's actual years of credited service."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect July 1, 2003; provided that section 4 shall take effect retroactive to January 1, 2003.

INTRODUCED BY:

_____________________________

BY REQUEST