Report Title:

ERS; Retirement Allowance; Principals and Vice Principals

Description:

Provides for an increased retirement allowance under the "employees retirement system" for persons who serve as principals and vice principals in public schools; allows current members to receive an increased allowance without making additional contributions if the member serves for at least five years after the effective date of this Act as a principal or vice principal.

THE SENATE

S.B. NO.

765

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the retirement allowance for principals and vice principals.

 

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 be appropriately designated and to read as follows:

"§88- Principals and vice principals; allowance on service retirement. (a) Notwithstanding the provisions of section 88-74, upon retirement from service, a member who has served as a public school principal or vice principal shall receive a retirement allowance as set forth in this section.

(b) If the member has attained age fifty-five, a retirement allowance equal to two per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any service as a judge, elective officer, or legislative officer, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member; provided that after July 1, 2003, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a public school principal or vice principal, then for each year of service as a public school principal or vice principal, the retirement allowance shall be two and one-half per cent of the member's average final compensation; provided that the member contributes twelve and two-tenths per cent of the member's compensation to the annuity savings fund for service in that capacity after June 30, 2003. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation.

If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained the age of fifty-five, reduced in accordance with factors of actuarial equivalence adopted by the board upon the advice of the actuary."

SECTION 2. Current class A and class C members of the employees' retirement system who are otherwise eligible shall receive the allowance adjustments provided by this Act without making additional contributions; provided that such members serve as a principal or vice principal for at least five years after the effective date of this Act. Members who are otherwise eligible but do not serve for at least five years as a principal or vice principal following the effective date of this Act may receive the allowance adjustment authorized in section 1 of this Act by paying the actuarial equivalent established by the board based on the member's years of service.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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