THE SENATE

S.B. NO.

590

THIRTY-FIRST LEGISLATURE, 2021

 

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.] employed on or after the effective date of Act      , Session Laws of Hawaii 2021, by the board of regents and are eligible for membership in the state employee's retirement system.

(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 to the optional retirement system of the University of Hawaii and to endure the adequate choice and competition for employee participants, the board of regents shall designate no fewer than three companies to provide annuity contracts, mutual fund accounts, or similar investment products offered through state or national financial institutions, or a combination of them, under the optional retirement system.

(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 any employee whose compensation is paid in whole or in part from the general fund and who elects to become a member of the optional retirement system of the University of Hawaii, the University of Hawaii shall make the annual contribution on behalf of the employee to the optional retirement system of the University of Hawaii.

(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 of the University of Hawaii or the community college system who are excluded from bargaining unit (7) pursuant to chapter 89,]

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 of the University of Hawaii or the community college system who are excluded from bargaining unit (7) pursuant to chapter 89,

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.] an appointee of the board of regents and is eligible for membership in the state employees' retirement system shall be enrolled as a member of the state employees' retirement system unless the employee elects to be enrolled in the optional retirement system of the University of Hawaii within ninety days of the date of the employee's employment. Upon electing to be enrolled in the optional retirement system of the University of Hawaii, a person who remains employed by the University of Hawaii may not transfer from the optional retirement system of the University of Hawaii to the state employees' retirement system. Service under the optional retirement system of the University of Hawaii shall not be credible as service under the state employees' retirement system.

(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)[.] and (8)."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

University of Hawaii; Optional Retirement System

 

Description:

Restricts the eligible membership of the UH optional retirement system to employees of the board of regents. Requires the board of regents to choose at least three companies to provide investment products under the UH optional retirement system. Automatically enrolls UH employees to the state employee's retirement system unless they opt to enroll in the UH optional retirement system within ninety days of employment. Prohibits UH employees from transferring from the UH optional retirement system to the state employees' retirement system. Requires UH to make annual contributions for its employees within the optional retirement system. Allows the retirement benefits of the UH optional retirement system to be subject to collective bargaining negotiations for the bargaining unit for personnel other than UH faculty.

 

 

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