THE SENATE

S.B. NO.

590

THIRTY-FIRST LEGISLATURE, 2021

S.D. 1

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[.]; or

(3) Athletic coaches and assistant coaches employed by the University of Hawaii, who are included in bargaining unit (8) pursuant to chapter 89 and hired on or after July 1, 2021.

(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 in establishing an optional retirement system, the board of regents may utilize the following:

(1) State of Hawaii deferred compensation plan authorized by section 457 of the Internal Revenue Code;

(2) Funds and plans offered as part of the University of Hawaii's supplemental retirement savings program authorized by section 403(b) of the Internal Revenue Code; or

(3) Any additional companies or plan providers to provide annuity contracts, mutual fund accounts, or similar investment products.

(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.

(f) Any member or former 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.] shall not be eligible for membership in the optional retirement system.

(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[,];

(3) An athletic coach or assistant coach employed by the University of Hawaii, who is included in bargaining unit (8) pursuant to chapter 89, and hired on or after July 1, 2021; or

(4) Employees whose eligibility in the optional retirement system of the University of Hawaii has been authorized and prescribed by the rules of the board of regents,

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] units (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 on July 31, 2050.


 


 

Report Title:

University of Hawaii; Optional Retirement System

 

Description:

Expands the membership eligibility for the University of Hawaii's optional retirement system to athletic coaches and assistant coaches who are employed by the University on or after July 1, 2021, and are included in bargaining unit (8). Allows the Board of Regents to utilize existing alternative surrogate retirement plans already offered by State or the University as an alternative. Allows the Board of Regents to adopt rules pertaining to eligibility in the optional retirement system. Prohibits members and former members of the ERS from opting into the optional retirement system. Allows the retirement benefits of the UH optional retirement system to be subject to collective bargaining negotiations for the bargaining units (7) and (8). Effective 7/31/2050. (SD1)

 

 

 

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