Report Title:

Employer-Union Health Benefits Trust Fund; Benefit Status Upon Return to Service

Description:

Clarifies that a public employee with credited service prior to 7/1/96, who suffers a break in service before or after 7/1/96, shall qualify for the retirement health benefits plan as it existed prior to 7/1/96; provided that the public employee meets certain requirements. (SD1)

THE SENATE

S.B. NO.

2355

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public employee health benefits.

 

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

SECTION 1. Section 87A-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, this section shall apply to state and county contributions to the fund for:

(1) The dependent-beneficiary of an employee who is killed in the performance of duty;

(2) A dependent-beneficiary, upon the death of the employee-beneficiary, except as provided in section 87A-36;

(3) An employee-beneficiary who retired after June 30, 1984, due to a disability falling within sections 88-79 and 88-285;

(4) An employee-beneficiary who retired before July 1, 1984;

(5) An employee-beneficiary who:

(A) Was hired before July 1, 1996;

(B) Retired after June 30, 1984; and

(C) Who has ten years or more of credited service, excluding sick leave;

(6) An employee-beneficiary who:

(A) Was hired after June 30, 1996; and

(B) Retired with twenty-five or more years of credited service, excluding sick leave, except as provided in section 87A-36; [and]

(7) Employees who retired prior to 1961 and their dependent-beneficiaries[.];

(8) An employee-beneficiary excluded under section 87A-35 who:

(A) Was hired prior to July 1, 1996, who transfers employment after June 30, 1996, and who subsequently returns to service and cumulatively accrues at least ten years of credited service; or

(B) Was hired prior to July 1, 1996, who has at least ten years of credited service prior to a break in service."

SECTION 2. Section 87A-35, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) This section shall apply to state and county contributions to the fund for employees who were hired after June 30, 1996, but before July 1, 2001, and who retire with fewer than twenty-five years of credited service, excluding sick leave; provided that this section shall not apply to[:] the following employees, who shall be subject to section 87A-33:

(1) An employee hired prior to July 1, 1996, who transfers employment after June 30, 1996[; and], and who subsequently returns to service and cumulatively accrues at least ten years of credited service; and

(2) An employee hired prior to July 1, 1996, who has at least ten years of credited service [and who has had] prior to a break in service.

For purposes of this section, "transfer" means to leave state or county employment and return to state or county employment within ninety calendar days."

SECTION 3. The board of trustees of the employer-union health benefits trust fund shall establish a process by which public employees affected by this Act shall be notified of the retirement health benefits options provided under this Act.

SECTION 4. Statutory material to be repealed is bracketed

and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.