Report Title:

Deferred retirement option plan; firefighters

Description:

Establishes a deferred option retirement plan for firefighters.

HOUSE OF REPRESENTATIVES

H.B. NO.

569

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public employees.

 

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-    Deferred retirement option plan for firefighters. (a) Notwithstanding any other law to the contrary, there is established a deferred retirement option plan for firefighters. The deferred retirement option plan for firefighters shall enable firefighters to access an initial lump sum benefit in addition to their normal monthly retirement benefit upon actual retirement.

(b) The board shall offer the deferred retirement option plan to firefighters on a voluntary basis as an alternative method of benefit accrual under the system.

(c) To qualify for the lump sum payment under the deferred retirement option plan, the firefighter shall contribute an amount in a manner to be determined by the board of trustees into a deferred retirement option plan account. The deferred retirement option plan account shall earn interest at a fixed rate while the firefighter continues to work. In exchange, the firefighter ceases to accrue credited years of service or benefit increases based on salary raises during the period the firefighter is making contributions to the deferred retirement option plan account. Upon termination of service, the firefighter shall receive monthly benefits in addition to the initial lump sum payment from the deferred retirement option plan account."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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