CHAPTER 88

PENSION AND RETIREMENT SYSTEMS

 

        Part I.  General Provisions

 

         A.  Miscellaneous

Section

      88-1 Restrictions

    88-1.2 Civil unions

      88-2 Minimum pension

      88-3 Payment on death of pensioner

      88-4 Medical aid, etc., when free

      88-5 List of pensioners, who shall provide

      88-6 Payment of refunds and retirement benefits

      88-7 County pensioners; post retirement allowance

      88-8 University of Hawaii optional retirement system

      88-9 Employment of retirants

 

         B.  Pensioners' Bonus

     88-11 Bonus; pensioners' special compensation; amounts

           available

     88-12 Bonus; requirements, limitations

     88-13 Bonus; retirants not eligible for

     88-14 Bonus; authority to pay

     88-15 Bonus; waiver by veteran

     88-16 Bonus; appropriation

     88-17 Bonus payment; limitation

 

        Part II.  Retirement for Public Officers and Employees

 

         A.  Definitions; Board of Trustees

     88-21 Definitions

   88-21.5 Compensation

     88-22 System established; name

   88-22.5 Federal tax qualification requirements

     88-23 General administration of system vested in board

     88-24 Composition of board

     88-25 Vacancy

     88-26 Expenses of trustees

     88-27 Oath of trustees

   88-27.5 Closed meetings of the board; authorized

     88-28 Voting; rules

     88-29 Officers, employees, legal adviser

   88-29.5 Investment personnel

     88-30 Actuary

     88-31 Medical board

     88-32 Repealed

     88-33 Prohibited interest of trustees and employees

           of board

 

         B.  Membership; Service

     88-41 Limitation of other statutes

     88-42 Membership generally

   88-42.5 Membership of employees holding more than one

           position, appointment, or office

   88-42.6 Membership of elective officers

     88-43 Persons ineligible for membership

     88-44 Enrollment

     88-45 Employee contributions

   88-45.4 Contributions for unpaid leaves of absence

   88-45.5 Acceptance of rollovers and transfers from

           other plans

     88-46 Deducting employee contributions from salary and

           employer pick up of employee contributions

   88-46.5 Repealed

   88-46.6 Erroneous contributions from compensation of class C

           members; contributions from overpaid compensation

     88-47 Membership

     88-48 Deduction in class A member's account

     88-49 Employees paid partly from federal funds

   88-49.3 Employees paid from certain federal funds

   88-49.5 Certain employees subject to federal retirement

           system; election

   88-49.7 East-West center employees

     88-50 Computation of year of service

   88-50.5 Credit for mandatory maternity leave

     88-51 Membership service generally

   88-51.5 Repealed

     88-52 Service while a member of the legislature

     88-53 (Reserved)

     88-54 Service while legislative employee

   88-54.2 Session employees of the legislature; exempt from

           mandatory enrollment

   88-54.5 Service while a member of the board of trustees

           of the office of Hawaiian affairs

     88-55 Services of field civilian personnel of the Hawaii

           national guard

   88-55.5 Service of Hawaii national guard members on state

           active duty; exempt from mandatory enrollment

     88-56 Repealed

     88-57 Prior service generally

     88-58 Prior service credit while per diem employee

     88-59 Acquisition of membership service

   88-59.5 Previous membership service credit for legislative

           officers

   88-59.6 Repealed

     88-60 Members whose services are on loan to other

           governments

     88-61 Termination of membership

     88-62 Return to service of a former member

     88-63 Credit for unused sick leave

     88-64 Retroactive reinstatement; retroactive rescission

           of suspension; retroactive payments

 

         C.  Benefits

     88-70 Third application for retirement; withdrawal

           prohibited and retirement mandatory

     88-71 Credited service at retirement

     88-72 Repealed

     88-73 Service retirement

     88-74 Allowance on service retirement

   88-74.5 Finalizing of pensions

   88-74.6 Unreduced allowance on service retirement; when

           applicable

   88-74.7 Commencement of benefits on required beginning date

   88-74.8 Forfeiture of benefits; felony convictions

     88-75 Ordinary disability retirement

     88-76 Allowance on ordinary disability retirement

    88-77, 78 Repealed

     88-79 Service-connected disability retirement

     88-80 Allowance on retirement for service-connected

           disability

     88-81 Average final compensation

   88-81.5 Federal tax limits on annual compensation

     88-82 Petition for contested case hearing regarding

           disability retirement or accidental death benefits;

           attorney's fees and costs

     88-83 Election of retirement allowance option

   88-83.5 Benefit limitations

     88-84 Ordinary death benefit

   88-84.5 Federal limits on annual compensation for ordinary

           death benefit

     88-85 Accidental death benefit

   88-85.5 Applications for accidental death benefits;

           approval by the system

     88-86 Repealed

     88-87 Adjustment for deficiency in accumulated

           contributions

     88-88 Adjustment of retirement allowances of retirants

     88-89 Minimum amount

     88-90 Post retirement allowances

   88-90.5 Actuarial assumptions

     88-91 Exemption from taxation and execution

     88-92 Garnishment in certain cases; procedure

     88-93 Named beneficiaries by members and by former

           employees; effect of marriage, entry into reciprocal

           beneficiary relationship, divorce, termination of

           reciprocal beneficiary relationship, or death

   88-93.5 Distribution of property in a divorce action

     88-94 Withholding of income taxes

     88-95 Withholding of dues and insurance premiums

     88-96 Rights of members separated from service

     88-97 Return to service of a member who has vested benefit

           status

     88-98 Return to service of a retirant

     88-99 Moratorium on benefit enhancements

    88-100 Payment by employers of costs associated with

           significant non-base pay increases

 

         D.  Administration; Financing

    88-101 Payment of existing pensions

    88-102 Classification of members

    88-103 Records

  88-103.5 Disclosure of information

  88-103.7 Information from the State and counties

    88-104 Actuarial data

    88-105 Actuarial investigations, valuations

  88-105.5 Stress test; annual report

    88-106 Correction of errors

  88-106.5 Compromise and settlement

    88-107 Interest

    88-108 Cash for meeting disbursements

    88-109 Funds of the system

    88-110 Board; trustees of funds

    88-111 Custodian of the funds

    88-112 Annuity savings fund; annual statement

    88-113 Payments from annuity savings fund

    88-114 Pension accumulation fund

   88-115, 115.5 Repealed

    88-116 Expense fund

   88-117, 118 Repealed

    88-119 Investments

  88-119.5 Investment guidelines

    88-120 Service charges

    88-121 Power to make agreements to protect securities on

           reorganization or otherwise

  88-121.5 Power to enter into security loan agreements

    88-122 Determination of employer normal cost and accrued

           liability contributions

    88-123 Amount of annual contributions by the State and

           counties

    88-124 Payment of state contributions to the system

    88-125 Contributions by certain state agencies

    88-126 Payment of county contributions to the system

  88-126.5 Advance payments of state and county contributions to

           the system

    88-127 Guaranty

 

         E.  Special Benefits for Members in Military Service

    88-131 Definitions

    88-132 Service credit; payment of contributions

  88-132.5 Credit for military service

    88-133 Benefits and conditions applicable to service member

    88-134 Service retirement benefit

    88-135 Ordinary disability retirement benefit

    88-136 Accidental disability benefit

    88-137 Ordinary death benefit

    88-138 Accidental death benefit

    88-139 Return of contributions

    88-140 Duration of service member's status

    88-141 Computation of compensation earned or earnable

    88-142 Right of amendment or repeal reserved; retroactive

           effect

 

        Part III.  Police Officers, Firefighters, and

                   Bandsmen Pension System

    88-151 Application

    88-152 Certain other employees included

    88-153 Police officers, firefighters, and bandsmen pension

           system; trustees, powers

    88-154 Officers of the board; duties

    88-155 Medical board

    88-156 Appropriations and expenditure

    88-157 Use of donations, contributions, gifts, or bequests

    88-158 Disability retirement benefits

    88-159 Reexamination of disability beneficiary; hearing

    88-160 Service retirement benefits

    88-161 Dismissal after twenty years' service; pensions

    88-162 Dismissal after ten years' service; pension

    88-163 Death benefits:  funeral expenses; payments to

           dependents

    88-164 Benefits in lieu of other payments

    88-165 Adjustments of pensions

    88-166 Computation; service as police officer, firefighter,

           or bandsman

    88-167 Computation; prior credits

    88-168 Orders, discipline, medical examination, etc.

    88-169 Payments of pensions; inalienable

    88-170 Forfeiture of pension

    88-171 Public hearings; notice

 

        Part IV.  Municipal and County Pension Systems

    88-181 Pension boards created

    88-182 Members:  appointment, terms, removals

    88-183 Qualifications

    88-184 Expenses; appropriations

    88-185 Assistants; county clerk, attorney, and treasurer

    88-186 Meetings

    88-187 Payment, conditions

    88-188 Additional conditions

    88-189 Widow's, widower's, and reciprocal beneficiary's

           pensions

    88-190 Amount

    88-191 Computation of service

    88-192 Examination by physician

    88-193 Compliance with law required

 

        Part V.  Other County Pensions

    88-201 Pensions eligible

    88-202 Restrictions as to personnel

    88-203 Limitation of amount

    88-204 County appropriations directed

 

        Part VI.  Federal Social Security for Public Employees

    88-211 Definitions

    88-212 Federal-state agreement

    88-213 Division of retirement systems

    88-214 Modifications to agreement

    88-215 Contributions by state employees

    88-216 Collection of contributions

    88-217 Adjustments

    88-218 Plans for coverage of employees of political

           subdivision

    88-219 Referendum

    88-220 Refusal or termination of plans

    88-221 Payments by political subdivisions

    88-222 Contributions by employees of political subdivisions

    88-223 Delinquent payments

    88-224 Contribution fund; established

    88-225 Purpose of contribution fund

    88-226 Payments to federal government

    88-227 Custodian of fund

    88-228 Appropriations to contribution fund

    88-229 Rules and regulations

    88-230 Studies and reports

 

        Part VII.  Retirement for Class C Public Officers and

                   Employees

 

         A.  Applicability of Part II

    88-251 Applicability

 

         B.  Definitions

    88-261 Definitions

 

         C.  Membership, Credited Service

    88-271 Election

    88-272 Credited service

    88-273 Break in service; reemployment

 

         D.  Eligibility; Benefits

    88-281 Service retirement

    88-282 Service retirement allowance

    88-283 Election of retirement allowance option

    88-284 Ordinary disability retirement

    88-285 Service-connected disability retirement

    88-286 Death benefit

 

        Part VIII.  Retirement for Class H Public Officers

                    and Employees

 

         A.  Applicability of Part II

    88-301 Applicability

 

         B.  Definitions

    88-311 Definitions

 

         C.  Membership, Credited Service

    88-321 Election and membership

    88-322 Conversion of previous credited service

    88-323 Class H credited service

    88-324 Acquisition of membership service

    88-325 Employee contributions

    88-326 Deducting employee contributions from salary

           and employer pick up of employee contributions

 

         D.  Eligibility; Benefits

    88-331 Service retirement

    88-332 Service retirement allowance

    88-333 Election of retirement allowance option

    88-334 Ordinary disability retirement

    88-335 Ordinary disability retirement allowance

    88-336 Service-connected disability retirement

    88-337 Service-connected disability retirement allowance

    88-338 Ordinary death benefit

    88-339 Accidental service-connected death benefit

    88-340 Termination of membership

    88-341 Rights of members separated from service

    88-342 Return to service of a former member without vested

           benefit status

    88-343 Return to service of a former member who has vested

           benefit status

    88-344 Return to service of a retirant

 

Note

 

  Investment reporting, etc.  L 2007, c 192.

 

Attorney General Opinions

 

  Death benefits upon an employee's demise do not accrue to hanai children.  Att. Gen. Op. 93-1.

 

Case Notes

 

  Court lacked subject matter jurisdiction over class action suit against system for alleged violations of chapter.  73 H. 9, 828 P.2d 260.

  Plaintiff's claim that plaintiff had earned full-time membership credit in employees' retirement system as a result of plaintiff's service as a per diem district court judge, was at odds with specific mandates of this chapter, and to sustain it would lead to an unjust and unreasonable result.  75 H. 42, 856 P.2d 1227.

  While the accrual and extent of an employee's benefits are governed by the applicable statutory provisions of this chapter, the duty of the employees' retirement system to pay accrued benefits is deemed to be contractual under article XVI, §2 of the Hawaii constitution; thus, a circuit court's jurisdiction under §661-1(1) over such claims is "founded upon contract", as well as statute and the circuit court did not err in rejecting defendant's contention that plaintiffs' claims were barred by sovereign immunity.  121 H. 462 (App.), 220 P.3d 1043.

  Respondent employees' retirement system's (ERS) interpretation [that "compensation", is "pay or salary that is tied to services rendered and not reimbursement for employee expenses",] was not "palpably erroneous" given the ambiguity of the statutory language at issue and its subsequent history, the entire statutory scheme, and respondent ERS' long-standing interpretation and consistent practice to exclude car, uniform, and firearm allowances from its definition and calculation of "compensation", and was entitled to persuasive weight.  129 H. 107 (App.), 295 P.3d 977 (2013).