1047
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO MAXIMUM RETIREMENT ALLOWANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 88-74, Hawaii Revised Statutes,
 
 2 isamended to read as follows:
 
 3      "§88-74  Allowance on service retirement.  Upon retirement
 
 4 from service, a member shall receive a retirement allowance as
 
 5 follows:
 
 6      (1)  If the member has attained age fifty-five, a retirement
 
 7           allowance of two per cent of the member's average final
 
 8           compensation multiplied by the total number of years of
 
 9           the members's credited service as a class A and B
 
10           member, excluding any credited service as an elective
 
11           officer or legislative officer, plus a retirement
 
12           allowance of one and one-fourth per cent of the
 
13           member's average final compensation multiplied by the
 
14           total number of years of prior credited service as a
 
15           class C member[;] provided that no retirement allowance
 
16           shall exceed eighty per cent of the member's average
 
17           final compensation and further provided that:
 
18           (A)  After June 30, 1968, if the member has at least
 
19                ten years of credited service of which the last
 

 
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 1                five or more years prior to retirement is credited
 
 2                service as a firefighter, police officer, or an
 
 3                investigator of the department of the prosecuting
 
 4                attorney;
 
 5           (B)  After June 30, 1977, if the member has at least
 
 6                ten years of credited service of which the last
 
 7                five or more years prior to retirement is credited
 
 8                service as a corrections officer;
 
 9           (C)  After June 16, 1981, if the member has at least
 
10                ten years of credited service of which the last
 
11                five or more years prior to retirement is credited
 
12                service as an investigator of the department of
 
13                the attorney general;
 
14           (D)  After June 30, 1989, if the member has at least
 
15                ten years of credited service of which the last
 
16                five or more years prior to retirement is credited
 
17                service as a narcotics enforcement investigator;
 
18           (E)  After December 31, 1993, if the member has at
 
19                least ten years of credited service of which the
 
20                last five or more years prior to retirement is
 
21                credited service as a water safety officer; and
 
22           (F)  After June 30, 1994, if the member has at least
 
23                ten years of credited service, of which the last
 

 
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 1                five or more years prior to retirement are
 
 2                credited service as a public safety investigative
 
 3                staff investigator;
 
 4           then for each year of service as a firefighter, police
 
 5           officer, corrections officer, investigator of the
 
 6           department of the prosecuting attorney, investigator of
 
 7           the department of the attorney general, narcotics
 
 8           enforcement investigator, water safety officer, or
 
 9           public safety investigations staff investigator, the
 
10           retirement allowance shall be two and one-half per cent
 
11           of the member's average final compensation.  The
 
12           maximum retirement allowance for those members shall
 
13           not exceed eighty per cent of the member's average
 
14           final compensation.  If the member has not attained age
 
15           fifty-five, the member's retirement allowance shall be
 
16           computed as though the member had attained age fifty-
 
17           five, reduced in accordance with factors of actuarial
 
18           equivalence adopted by the board upon the advice of the
 
19           actuary; provided that no reduction shall be made if
 
20           the member has at least twenty-five years of credited
 
21           service as a firefighter, police officer, corrections
 
22           officer, investigator of the department of the
 
23           prosecuting attorney, investigator of the department of
 

 
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 1           the attorney general, narcotics enforcement
 
 2           investigator, public safety investigations staff
 
 3           investigator, sewer worker, or water safety officer, of
 
 4           which the last five or more years prior to retirement
 
 5           is credited service in such capacities;
 
 6      (2)  If the member has made voluntary additional
 
 7           contributions for the purchase of an additional annuity
 
 8           and has not applied for a refund as permitted by
 
 9           section 88-72, the member may accept the refund at the
 
10           time of retirement or, in lieu thereof, receive in
 
11           addition to the retirement allowance provided in
 
12           paragraph (1), an annuity that is the actuarial
 
13           equivalent of the additional contributions with regular
 
14           interest;
 
15      (3)  If the member has credited service as a judge, the
 
16           member's retirement allowance shall be computed on the
 
17           following basis:
 
18           (A)  Irrespective of age, for each year of credited
 
19                service as a judge, three and one-half per cent of
 
20                the member's average final compensation in
 
21                addition to an annuity that is the actuarial
 
22                equivalent of the member's accumulated
 
23                contributions allocable to the period of such
 

 
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 1                service; and
 
 2           (B)  For all other credited service, as provided in
 
 3                paragraphs (1), (2) and (4).  No allowance shall
 
 4                exceed seventy-five per cent of the member's
 
 5                average final compensation.  If the allowance
 
 6                exceeds this limit, it shall be adjusted by
 
 7                reducing the annuity included in subparagraph (A),
 
 8                and the portion of the accumulated contributions
 
 9                specified in that subparagraph in excess of the
 
10                requirements of the reduced annuity shall be
 
11                returned to the member.
 
12           The allowance for judges under this paragraph, together
 
13           with the retirement allowance provided by the federal
 
14           government for similar service, shall in no case exceed
 
15           seventy-five per cent of the member's average final
 
16           compensation; or
 
17      (4)  If the member has credited service as an elective
 
18           officer or as a legislative officer, the member's
 
19           retirement allowance shall be derived by adding the
 
20           allowances computed separately under subparagraphs (A),
 
21           (B), (C), and (D) as follows:
 
22           (A)  Irrespective of age, for each year of credited
 
23                service as an elective officer, three and one-half
 

 
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 1                per cent of the member's average final
 
 2                compensation as computed under section 88-
 
 3                81(d)(1), in addition to an annuity that is the
 
 4                actuarial equivalent of the member's accumulated
 
 5                contributions allocable to the period of service;
 
 6                and
 
 7           (B)  Irrespective of age, for each year of credited
 
 8                service as a legislative officer, three and one-
 
 9                half per cent of the member's average final
 
10                compensation as computed under section 88-
 
11                81(d)(2), in addition to an annuity that is the
 
12                actuarial equivalent of the member's accumulated
 
13                contributions allocable to the period of service;
 
14           (C)  Irrespective of age, for each year of credited
 
15                service as a judge, three and one-half per cent of
 
16                the member's average final compensation as
 
17                computed under section 88-81(d)(3), in addition to
 
18                an annuity that is the actuarial equivalent of the
 
19                member's accumulated contributions allocable to
 
20                the period of service; and
 
21           (D)  For each year of credited service not included in
 
22                subparagraph (A), (B), or (C), the average final
 
23                compensation as computed under section 88-81(d)(4)
 

 
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 1                shall be multiplied by two per cent, two and one-
 
 2                half per cent, or one and one-quarter per cent, as
 
 3                applicable to the credited service earned as a
 
 4                class A, B, or C member, respectively.
 
 5           The total retirement allowance shall not exceed
 
 6           seventy-five per cent of the member's highest average
 
 7           final compensation calculated under section 88-
 
 8           81(d)(1), (2), (3), or (4).  If the allowance exceeds
 
 9           this limit, it shall be adjusted by reducing any
 
10           annuity accrued under subparagraphs (A), (B), and (C)
 
11           and the portion of the accumulated contributions
 
12           specified in these subparagraphs in excess of the
 
13           requirements of the reduced annuity shall be returned
 
14           to the member.  If a member has service credit as an
 
15           elective officer or as a legislative officer in
 
16           addition to service credit as a judge, then the
 
17           retirement benefit calculation contained in this
 
18           paragraph shall supersede the formula contained in
 
19           paragraph (3)."
 
20      SECTION 2.  Section 88-76, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§88-76  Allowance on ordinary disability retirement.  Upon
 
23 retirement for ordinary disability, a member shall receive a
 

 
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 1 retirement allowance of one and three-fourths per cent of the
 
 2 member's average final compensation for each full year of
 
 3 credited service; except that for each year of credited service
 
 4 as a judge, an elective officer, or a legislative officer, the
 
 5 member shall receive a retirement allowance computed as provided
 
 6 in section 88-74(3) or (4), as applicable.  The minimum
 
 7 retirement allowance payable under this section shall be thirty
 
 8 per cent of the member's average final compensation.  No
 
 9 retirement allowance under this section shall exceed seventy per
 
10 cent of the member's average final compensation except as
 
11 provided in section 88-74(3) and (4)."
 
12      SECTION 3.  Section 88-282, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§88-282  Amount of allowance.(A) The amount of the annual
 
15 normal retirement allowance payable to a retired member shall be
 
16 one and one-fourth per cent of the average final compensation
 
17 multiplied by the number of years of credited service[.] provided
 
18 that no retirement allowance shall exceed fifty per cent of the
 
19 member's average final compensation.
 
20      (b)  The amount of the annual early retirement allowance
 
21           payable to a retired member shall be equal to the
 
22           annual normal retirement allowance reduced by one-half
 
23           per cent for each month the member is less than age
 

 
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 1           sixty-two at retirement."
 
 2      SECTION 4.  Section 88-24, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§88-284  Ordinary disability retirement.(a) Upon
 
 5 application of a member in service or on leave without pay, or
 
 6 the person appointed by the family courts as guardian of an
 
 7 incapacitated member, any member who has ten or more years of
 
 8 credited service shall be retired by the board of trustees on an
 
 9 ordinary disability retirement allowance if the medical board,
 
10 after a medical examination of the member certifies that:
 
11      (1)  The member is mentally or physically incapacitated for
 
12           the further performance of duty at the time of
 
13           application;
 
14      (2)  The incapacity is likely to be permanent; and
 
15      (3)  The member should be retired.
 
16      (b)  Retirement shall become effective upon the date
 
17 specified by the board, which shall be no earlier than thirty
 
18 days after the date the application is filed.
 
19      (c)  A member who is determined to be permanently
 
20 incapacitated for the further performance of duty pursuant to
 
21 subsection (a) shall receive an ordinary disability retirement
 
22 allowance equal to the member's accrued normal retirement
 
23 allowance unreduced for age[.] provided that no retirement
 

 
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 1 allowance shall exceed fifty per cent of the member's average
 
 2 final compensation."
 
 3      SECTION 5.  Section 88-285, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "[§88-285]  Service connected disability.  A member who
 
 6 would be eligible to receive a service connected disability
 
 7 retirement allowance pursuant to section 88-79 shall receive a
 
 8 retirement allowance equal to the member's accrued normal
 
 9 retirement allowance unreduced for age[,].[but not]  The
 
10 retirement allowance shall be no less than fifteen per cent but
 
11 shall not exceed fifty per cent of the member's average final
 
12 compensation."
 
13      SECTION 6.  New statutory material is underscored.
 
14      SECTION 7.  This Act shall take effect on July 1, 1999.
 
15                           INTRODUCED BY:  ______________________ 
 

 
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