Report Title:

ERS; Retirement Allowance; Principals and Vice Principals

Description:

Provides any member with ten years of credited service as a public school principal or vice principal earned after the effective date of this Act to retire without penalty after accruing at least twenty-five years of credited service, regardless of age upon retirement. (SD2)

THE SENATE

S.B. NO.

765

TWENTY-SECOND LEGISLATURE, 2003

S.D. 2

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 part II to be appropriately designated and to read as follows:

"§88- Principals and vice principals; unreduced allowance on service retirement. In addition to those positions identified in section 88-74(1), and notwithstanding any law in this part that requires a member to attain age fifty-five in order to qualify for an unreduced service retirement allowance, if the member has at least twenty-five years of credited service, of which the last ten or more years prior to retirement is credited service as a public school principal or vice principal, then upon retirement and irrespective of age, that member's service retirement allowance shall not be reduced for actuarial purposes."

SECTION 2. Section 88-281, Hawaii Revised Statutes, is amended to read as follows:

"§88-281 Service retirement. (a) A member who has ten years of credited service and has attained age sixty-two, or a member with thirty years credited service who has attained the age of fifty-five, shall become eligible to receive a retirement allowance after the member has terminated service.

(b) If a member has at least twenty-five years of credited service as a sewer worker or as a water safety officer of which the last five or more years prior to retirement is credited in such a capacity, then the sewer worker or water safety officer shall be eligible to receive a retirement benefit unreduced for age after the member has terminated service.

(c) If a member has at least twenty-five years of credited service, of which the last ten or more years prior to retirement is credited service as a public school principal or vice principal, then the public school principal or vice principal shall be eligible to receive a retirement benefit unreduced for age after the member has terminated service.

[(c)] (d) A member who has twenty years of credited service and has attained age fifty-five shall be eligible to receive an early retirement allowance reduced for age after the member has terminated service.

[(d)] (e) A member who has ten years of credited service and terminates service prior to attaining age sixty-two shall have a vested right and shall be eligible to receive a retirement allowance when the member has attained age sixty-five.

[(e)] (f) A member may retire upon the written application to the board, specifying the desired date of retirement, which shall be not less than thirty days nor more than one hundred fifty days subsequent to the date of filing. Retirement shall be effective on the first day of a month, except for the month of December when retirement on the first or last day of the month shall be allowed.

[(f)] (g) In the event of the death of a member after the date of the filing of the member's written application to retire, but prior to the effective date of retirement, the designated beneficiary, otherwise the personal representative of the member's estate shall receive the allowance payable under the option selected by the member; provided that the member meets the eligibility requirements to retire on the member's date of death. The designated beneficiary shall be eligible for a retirement benefit no earlier than thirty days from the date the application was filed or the day following the member's date of death, whichever is later. Retirement benefits shall be effective on the first day of a month, except for the month of December when benefits shall be effective on the first or last day of the month."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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