Report Title:

UH; Employees; Retirement Benefits

Description:

Exempts part-time and temporary employees from participation in the optional UH retirement system; requires UH to designate at least 2 companies to offer investment products; stipulates criteria by which the companies will be selected; requires State to remit to UH 6.5% of the employees' compensation in lieu of their contribution.

THE SENATE

S.B. NO.

3232

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 to read as follows:

"[[]§88-8[]] University of Hawaii optional retirement system. (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.

(b) The general administration and the responsibility for the proper operation of the optional retirement system of the University of Hawaii shall be vested in the board of regents. [The board of regents may manage the optional retirement system within the University of Hawaii or contract for the management of the optional retirement system.] In fulfillment of its general administrative responsibilities related the optional retirement system of the University of Hawaii, and to ensure adequate choice and competition for employee participants, the board of regents shall designate no fewer than two companies to provide annuity contracts, mutual fund accounts, or similar investment products offered through state or national banking institutions, or a combination of them, under the program. In making the designation, the selection criteria shall include:

(1) The nature and extent of the rights and benefits to be provided by the contracts or accounts, or both, of the participants and their beneficiaries;

(2) The relation of the rights and benefits to the amount of contributions to be made;

(3) The suitability of these rights and benefits to the needs of the participants;

(4) The ability and experience of the designated companies in providing suitable rights and benefits under the contract or accounts, or both; and

(5) The ability and experience of the designated companies to provide suitable education and investment options.

(c) The board of regents may establish vesting periods for the members of the optional retirement system of the University of Hawaii that are different from those established in this chapter.

(d) The board of regents may establish retirement allowances and other benefits for the optional retirement system of the University of Hawaii.

(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 electing membership in the optional retirement system, whose compensation is paid in whole or in part from the general fund, 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.

(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.

(h) Notwithstanding any other law to the contrary, retirement benefits for the optional retirement system of the University of Hawaii shall be a subject of collective bargaining negotiations for bargaining unit (7)."

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:

_____________________________