Report Title:

Retirement Incentives

Description:

Clarifies that an employee who received a special retirement incentive benefit may be reemployed by the State without having to forfeit all benefits received if the employee's subsequent employment with the State is by contract-for-service for a period not to exceed one year in duration. Amends Sections 88-98 and 88-273, HRS, to conform statutory language. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2215

TWENTY-SECOND LEGISLATURE, 2004

H.D. 2

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC EMPLOYMENT.

 

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

SECTION 1. Section 88-98, Hawaii Revised Statutes, is amended to read as follows:

"88-98 Return to service of a retirant. Any retirant who returns to employment requiring active membership shall be reenrolled as an active member of the system in the same class from which the retirant originally retired and the retirant's retirement allowance shall be suspended.

(1) If the retirant returns to service before July 1, 1998, and again retires, the retirant's retirement allowance shall consist of:

(A) For members with fewer than three years of credited service during the member's period of reemployment, the allowance to which the member was entitled under the mode of retirement selected when the member previously retired and which was suspended; plus, for the period of service during the member's reemployment, the allowance to which the member is entitled for that service based on the mode of retirement initially selected and computed for the member's age, average final compensation, and other factors in accordance with the benefit formula in existence at the time of the member's latest retirement; or

(B) For members with three or more years of credited service during the member's period of reemployment, the allowance computed as if the member were retiring for the first time; provided that in no event shall the allowance be less than the amount determined in accordance with subparagraph (A);

(2) If the retirant returns to service after June 30, 1998, and again retires, the retirant's retirement allowance shall be computed in accordance with paragraph (1)(A), regardless of the number of years of service in the reemployment period; and

(3) Any retirant who received the special retirement incentive benefit under Act 253, Session Laws of Hawaii 2000, and is reemployed by the State or a county in any capacity shall:

(A) Have the retirant's retirement allowance suspended;

(B) Forfeit the special retirement incentive benefit and any related benefit provided by chapter 88; and

(C) Be subject to the age and service requirements under section 88-73 when the member again retires[.];

provided that if the retirant is reemployed by the State in a contract-for-service capacity in accordance with chapter 103D for a period not to exceed one year in duration, the retirant shall not be subject to forfeiture of any benefits derived from section 115, Act 253, Session Laws of Hawaii 2000.

The board of trustees shall adopt such rules as may be required to administer the purposes of this section."

SECTION 2. Section 88-273, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Any retirant who received the special retirement incentive benefit under Act 253, Session Laws of Hawaii 2000, and is reemployed by the State or a county in any capacity shall:

(1) Have the retirant's retirement allowance suspended;

(2) Forfeit the special retirement incentive benefit and any other related benefit provided by chapter 88; and

(3) Be subject to the age and service requirements under section 88-281 when the member again retires[.];

provided that if the retirant is reemployed by the State in a contract-for-service capacity in accordance with chapter 103D for a period not to exceed one year in duration, the retirant shall not be subject to forfeiture of any benefits derived from section 115, Act 253, Session Laws of Hawaii 2000."

SECTION 3. Act 253, Session Laws of Hawaii 2000, is amended by amending section 117 to read as follows:

"SECTION 117. [No] (a) Except as otherwise provided in subsection (b), no employee who has received any benefit under this part shall be reemployed by the State in any capacity as follows:

(1) For an employee receiving a voluntary severance benefit under section 114, unless the gross amount of the voluntary severance benefit paid under section 114 is returned to the appropriate fund prior to the commencement of reemployment if the employee is reemployed within five years from the date of separation; or

(2) For an employee receiving a special retirement incentive benefit under section 115, unless all benefits derived from the specific retirement incentive benefit under section 115, as determined by the board of trustees of the employees' retirement system, are forfeited prior to the commencement of reemployment.

(b) An employee receiving a special retirement incentive benefit may be reemployed by the State without having to forfeit any benefits derived from section 115 if the employee's subsequent employment with the State is by contract-for-service in accordance with chapter 103D, Hawaii Revised Statutes, for a period not to exceed one year in duration."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

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

SECTION 6. This Act shall take effect on July 1, 2050.