§88-98  Return to service of a retirant.  (a)  Any retirant who returns to employment requiring active membership shall be reenrolled as an active member of the system in the same class from which the retirant originally retired and the retirant's retirement allowance shall be suspended.

     (1)  If the retirant returns to service before July 1, 1998, and again retires, the retirant's retirement allowance shall consist of:

         (A)  For members with fewer than three years of credited service during the member's period of reemployment, the allowance to which the member was entitled under the retirement allowance option selected when the member previously retired and which was suspended; plus, for the period of service during the member's reemployment, the allowance to which the member is entitled for that service based on the retirement allowance option initially selected and computed for the member's age, average final compensation, and other factors in accordance with the benefit formula in existence at the time of the member's latest retirement; or

         (B)  For members with three or more years of credited service during the member's period of reemployment, the allowance computed as if the member were retiring for the first time; provided that in no event shall the allowance be less than the amount determined in accordance with subparagraph (A); and

     (2)  If the retirant returns to service after June 30, 1998, and again retires, the retirant's retirement allowance shall be computed in accordance with paragraph (1)(A), regardless of the number of years of service in the reemployment period.

     (b)  Any retirant who received the special retirement incentive benefit under Act 253, Session Laws of Hawaii 2000, and is reemployed by the State or a county in any capacity shall:

     (1)  Have the retirant's retirement allowance suspended;

     (2)  Forfeit the special retirement incentive benefit and any related benefit provided by chapter 88; and

     (3)  Be subject to the age and service requirements under section 88-73 when the member again retires.

     (c)  If a retirant's designation of beneficiary was irrevocable upon the retirant's initial retirement, the retirant may not change the retirant's designated beneficiary when the retirant returns to service or when the former retirant again retires.

     (d)  The board shall adopt any rules as may be required to administer the purposes of this section. [L 1974, c 108, §1; gen ch 1985; am L 1987, c 118, §2; am L 1998, c 151, §10; am L 2001, c 61, §1; am L 2006, c 169, §20]

 

Attorney General Opinions

 

  Return to service of contributory plan retirant; participation in noncontributory plan.  Att. Gen. Op. 85-21.

 

Case Notes

 

  Under this section (1993), for a member who retired for a second time, the only deductions authorized from the member's maximum monthly retirement allowance were deductions of the actuarial equivalent of the member's accumulated contributions when the member withdrew them upon the member's first and second retirements, and paragraph (2) (1993) did not authorize a reduction for the total of the monthly payments received by the member during the member's first retirement before the member's second employment.  89 H. 70 (App.), 968 P.2d 1081.