Report Title:

University of Hawaii; Retirement

Description:

Allows the University of Hawaii to implement an optional retirement system in lieu of the State Employees' Retirement System and fixes the State's contribution at six percent. Clarifies that part-time or temporary employees are not eligible for the optional retirement system.

THE SENATE

S.B. NO.

2073

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

Relating to the university of hawaii.

 

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

SECTION 1. Section 88-8, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Notwithstanding any other law to the contrary, the board of regents may establish without regard to the public notice or public hearing requirements of chapter 91, a retirement system separate from the state employees' retirement system to provide retirement allowances and other benefits for University of Hawaii employees who are:

(1) Members of bargaining unit (7); or

(2) Other employees of the University of Hawaii [or the community college system] who are excluded from bargaining unit (7) pursuant to [chapter 89.] section 89-6 (f) except for part-time employees working less than twenty hours per week and temporary employees of three months' duration or less."

2. By amending subsections (e), (f), and (g) to read:

"(e) [The employer's share of the cost of the optional retirement plan of the optional retirement system of the University of Hawaii shall not exceed the equivalent amount for any other group covered by this chapter.] For those employees whose compensation is paid in whole or in part from the general fund and who elect to become a member of the optional retirement system, the State shall remit to the University of Hawaii, an amount equal to six per cent of the employees' compensation in lieu of any contribution which it would have contributed to the state employees' retirement system on behalf of those employees had they not elected membership in the optional retirement system.

(f) Any member of the state employees' retirement system when the optional retirement system of the University of Hawaii is established who is also:

(1) A member of bargaining unit (7); or

(2) [Other employees] An employee of the University of Hawaii [or the community college system] who [are] is excluded from bargaining unit (7) pursuant to [chapter 89,] section 89-6(f) and who is not a part-time employee working less than twenty hours per week or a temporary employee of three months' duration or less,

shall remain a member of the state employees' retirement system unless the person elects in writing on a form prescribed by the board of regents to terminate the person's membership. The form shall be submitted to the state employees' retirement system no later than ninety days after the establishment of the optional retirement system of the University of Hawaii. Upon election to terminate a membership in the state employees' retirement system and to be a member of the optional retirement system of the University of Hawaii, the person may not transfer from one system to the other.

(g) Any person hired after the establishment of the optional retirement system of the University of Hawaii who is:

(1) A member of bargaining unit (7); or

(2) [Other employees] An employee of the University of Hawaii [or the community college system] who [are] is excluded from bargaining unit (7) pursuant to [chapter 89,] section 89-6(f) and who is not a part-time employee working less than twenty hours per week or a temporary employee of three months' duration or less,

shall elect to be a member of the state employees' retirement system or the optional retirement system of the University of Hawaii. Upon an election the person may not transfer from one system to the other."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

INTRODUCED BY:

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