REPORT TITLE:
ERS-Military Service Credit


DESCRIPTION:
Provides a military service credit of up to 4 years to qualified
retirants of the ERS.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.94
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM. 


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

 1      SECTION 1.  Section 88-132.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§88-132.5  Credit for military service.  (a)  Any employee
 
 4 who becomes a member of the system in accordance with section
 
 5 88-42 after June 17, 1996, and has rendered honorable active
 
 6 military service in the armed forces of the United States, may be
 
 7 credited with membership service credit for active military
 
 8 service of up to four years or the actual number of years of
 
 9 active military service, whichever is less, as follows:
 
10      (1)  Any member with ten years of credited service in the
 
11           system may be credited with up to two years of
 
12           membership service credit;
 
13      (2)  Any member with twenty years of credited service in the
 
14           system may be credited with up to three years of
 
15           membership service credit; and
 
16      (3)  Any member with twenty-five years of credited service
 
17           in the system may be credited with up to four years of
 
18           membership service credit.
 

 
Page 2                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  Any employee who became a member of the system in
 
 2 accordance with section 88-42 before June 18, 1996, and has
 
 3 rendered honorable active military service in the armed forces of
 
 4 the United States, may be credited with membership service credit
 
 5 for active military service of up to four years or the actual
 
 6 number of years of active military service, whichever is less, as
 
 7 follows:
 
 8      (1)  Any member with eight years of credited service in the
 
 9           system may be credited with up to two years of
 
10           membership service credit;
 
11      (2)  Any member with twenty years of credited service in the
 
12           system may be credited with up to three years of
 
13           membership service credit; and
 
14      (3)  Any member with twenty-five years of credited service
 
15           in the system may be credited with up to four years of
 
16           membership service credit.
 
17      (c)  Any retirant receiving a pension or retirement
 
18 allowance under this chapter, who rendered honorable active
 
19 military service in the armed forces of the United States and who
 
20 had at least eight years of credited service in the system at
 
21 retirement, shall be eligible for an increase in pension or
 
22 retirement allowance for each year of military service up to four
 
23 years, as follows:
 

 
Page 3                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1      (1)  A retirant with eight years of credited service in the
 
 2           system at retirement may be credited with up to two
 
 3           years of military service;
 
 4      (2)  A retirant with twenty years of credited service in the
 
 5           system at retirement may be credited with up to three
 
 6           years of military service; and
 
 7      (3)  A retirant with twenty-five years of credited service
 
 8           in the system at retirement may be credited with up to
 
 9           four years of military service.
 
10 Upon certification by the system, each year of credited military
 
11 service shall provide an increase of $36 a month in the
 
12 retirant's pension or retirement allowance effective July 1,
 
13 2000; provided that the retirant claims the service between
 
14 July 1, 1999, and June 30, 2000.  Military service credited under
 
15 this subsection shall not be considered membership service credit
 
16 nor shall it provide for any other benefits under this chapter.
 
17      [(c)] (d)  For the purposes of subsections (a) and (b), the
 
18 latest membership date shall be used if there is a change in
 
19 membership date due to termination and re-entry into the system.
 
20      [(d)] (e)  Any retirant who returns to employment, is
 
21 reenrolled as a member of the system, and has at least three
 
22 years of credited service in the system during the period of
 
23 reemployment may be credited with membership service credit for
 
24 active military service as provided in subsection (a) or (b);
 

 
Page 4                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1 provided that membership service credit shall be based upon the
 
 2 member's total service.
 
 3      [(e)] (f)  Active military service in the military reserve
 
 4 or national guard is not considered active military service
 
 5 unless in time of war or declared national or state emergency.
 
 6 Membership service creditable under this section shall be
 
 7 credited in accordance with sections 88-59 and 88-272.
 
 8      [(f)] (g)  A contributory member's active military service
 
 9 shall be considered service in the member's occupation at the
 
10 time that service is credited and shall be purchased at the rate
 
11 specified in section 88-45, and the retirement allowance provided
 
12 by that service shall be calculated as provided in section 88-74.
 
13      [(g)] (h)  Any violation of this section shall result in the
 
14 forfeiture of the amount of the purchase of membership service
 
15 and loss of benefits and membership service credit for military
 
16 service."
 
17      SECTION 2.  There is appropriated out of the general
 
18 revenues of the State of Hawaii the sum of $          or so much
 
19 thereof as may be necessary for fiscal year 1999-2000 to carry
 
20 out the purposes of this Act.  
 
21      SECTION 3.  The sum appropriated shall be expended by the
 
22 department of budget and finance for the purposes of this Act.  
 
23      SECTION 4.  Statutory material to be repealed is bracketed.
 
24 New statutory material is underscored.
 

 
Page 5                                                     
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 5.  This Act shall take effect upon its approval;
 
 2 provided that section 2 shall take effect on July 1, 1999.
 
 3 
 
 4                           INTRODUCED BY:  _______________________