Report Title:

Employees' Retirement System; Retirement Age of Beneficiaries Tied to Social Security Administration's Age Index for Benefits

Description:

Ties benefits paid by the employees' retirement system to its beneficiaries to the Social Security Administration's age index to receive full social security benefits. Applies to all public employees hired after 6/30/04. Does not apply to elective officers, legislative officers, judges, and public employees hired prior to 7/1/04.

THE SENATE

S.B. NO.

2078

TWENTY-SECOND LEGISLATURE, 2004

 

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. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§88-   Service retirement for members hired after June 30, 2004; minimum age requirements. (a) Notwithstanding the age requirements to receive benefits of section 88-73, 88-74, or 88-281, any person who becomes a member of the system after June 30, 2004, shall be eligible to receive benefits from the system upon earning the minimum years of service credit necessary to receive benefits according to the membership class to which the member belongs and:

(1) In order to receive a retirement benefit reduced actuarially for age, attain the highest age published by the federal Social Security Administration as its minimum age to receive an actuarially reduced retirement benefit for the year in which the member plans to retire, rounded to the nearest whole year; or

(2) In order to receive a retirement benefit unreduced actuarially for age, the highest age published by the federal Social Security Administration as its minimum age to receive a full retirement benefit for the year in which the member plans to retire, rounded to the nearest whole year.

(b) At least annually, the board shall consider adjusting the minimum age to receive a full retirement benefit unreduced actuarially for age from the system by reviewing the latest full retirement age information provided by the federal Social Security Administration. Upon finding that the ages used by the system for subsection (a)(1) or (2) need to be adjusted to reflect any change made to the corresponding retirement age used by the federal Social Security Administration, the board shall adjust the system's retirement age by rounding the federal Social Security Administration's corresponding age to receive retirement benefits to the nearest whole year.

(c) This section shall not apply to a member that:

(1) Has creditable service as a elective officer, legislative officer, or judge;

(2) Retires pursuant to section 88-75, 88-79, 88-158, 88-284, or 88-285;

(3) Became a member of the system prior to July 1, 2004 and who is a member of the system on July 1, 2004 whether the member has accrued vested benefit status in the system or not; or

(4) Became a member of the system prior to July 1, 2004, and has:

(A) Accrued vested benefit status in the system prior to suffering a break in service;

(B) Suffered a break in service; and

(C) Subsequently returned to public service and re-enrolled as a member of the system."

SECTION 2. New statutory material is underscored.

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

INTRODUCED BY:

_____________________________