Report Title:

Employees' Retirement System; OHA Trustees

Description:

Allows trustees of the Office of Hawaiian Affairs, who were in service on July 1, 2002, with less than five years of ERS membership service and who elected to become an ERS member prior to October 1, 2002, to purchase their service credit pursuant to section 88-59(2), Hawaii Revised Statutes. (SD1)

THE SENATE

S.B. NO.

1155

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the office of hawaiian affairs.

 

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

SECTION 1. Section 88-54.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]88-54.5[]] Service while a member of the board of trustees of the office of Hawaiian affairs. Notwithstanding any provisions of section 10-9 that may previously have precluded a member of the board of trustees of the office of Hawaiian affairs from participating as a member of the employees' retirement system:

(1) Any trustee of the office of Hawaiian affairs in service on July 1, 2002, may become a member upon the trustee's election in accordance with section 88-43 by October 1, 2002;

(2) Any trustee of the office of Hawaiian affairs elected or appointed after July 1, 2002, may become a member upon the trustee's election in accordance with section 88-43;

(3) Any service as a trustee of the office of Hawaiian affairs during the period of July 1, 1993, through July 1, 2002, if claimed by the member, shall be credited in the member's class at the time the service is acquired; provided that membership service shall be credited in accordance with sections 88-59 and 88-272; provided further that membership service may be credited pursuant to section 88-59(2), for any trustee with fewer than five years of creditable service who elected to become a member under paragraph (1); and

(4) Any former trustee of the office of Hawaiian affairs who retired from service prior to July 1, 2002, shall not be entitled to claim membership service as a trustee during the period July 1, 1993, through June 30, 2002."

SECTION 2. Section 88-59, Hawaii Revised Statutes, is amended to read as follows:

"88-59 Acquisition of membership service. Under rules as the board of trustees may adopt, any member may file with the board a statement of all service as an employee or other service paid for by the State or a county rendered prior to the member's last becoming a member which is not credited to the member, for which the member claims prior service credit, and also a statement of such services for which the member claims membership service credit and for which the member agrees to have additional deductions made from the member's compensation or to make a lump sum payment as described in this section.

After the filing of the statement, the board shall verify the service claimed and determine the service credit allowable. Verified prior service shall be credited and verified membership service shall be paid for by the member in any one of the following methods, at the member's option:

(1) By deductions from the member's compensation pursuant to section 414(h)(2) of the federal Internal Revenue Code of 1986, as amended, under the employer pick up plan under section 88-46. An irrevocable payroll authorization filed by the member for a period not to exceed sixty months shall remain in effect until the completion of the payroll payments or termination of employment, whichever is earlier. The member may elect to have:

(A) Deductions from the member's compensation of twice the contribution rate provided for in section 88-45 over a period equal to the period for which membership service credit is allowable not to exceed sixty months; or

(B) Deductions from the member's compensation of one and one-half times the contribution rate provided for in section 88-45 over a period equal to twice the period for which membership service credit is allowable not to exceed sixty months; or

(2) By lump sum payment of contributions computed at the contribution rate provided for in section 88-45 applied to the member's monthly rate of compensation at the time of payment multiplied by the number of months for which membership service credit is allowable; provided that after July 1, 1982, this method shall not be available to any new member with fewer than five years of membership service exclusive of any previous service acquired under paragraph (1)[.], unless the member is claiming service credit as a trustee of the office of Hawaiian affairs and has elected to become a member pursuant to section 88-54.5(1)."

The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member's individual account and become part of the member's accumulated contributions.

Membership service credit in addition to any other service credited to the member shall be allowed for the period for which the deductions from compensation or lump sum payment have been made as described in this section.

The contribution rates under section 88-45 shall be reduced by one and eight-tenths per cent for any service being claimed that was rendered prior to July 1, 1961.

Any member of the legislature who reenrolls as an active member in accordance with section 88-62 and who desires to obtain membership service for a period of service as a member of the legislature during which the member received a retirement allowance shall, in addition to complying with this section, refund while a reenrolled active member the retirement allowance received during the period of legislative service."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.