REPORT TITLE:
Judiciary; Salaries


DESCRIPTION:
Increases judicial salaries.  Eliminates early retirement
provision for judges, including provision allowing judges to
retire whenever the allowance reaches 75 per cent of the member's
average final compensation.  Protects accrued benefits of judges
and former judges.  (SB1345 SD2 HD1))

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO EMPLOYMENT COMPENSATION IN THE JUDICIARY.



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

 1                              PART I
 
 2      SECTION 1.  Section 602-2, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§602-2 Salary[,] of supreme court justices.  [Effective
 
 5 January 1, 1989, the salary of the chief justice of the supreme
 
 6 court shall be $90,699 a year and the salary of each associate
 
 7 justice of the supreme court shall be $89,699 a year.  Effective
 
 8 January 1, 1990, the salary of the chief justice of the supreme
 
 9 court shall be $94,780 a year and the salary of each associate
 
10 justice of the supreme court shall be $93,780 a year.] (a)  The
 
11 salary of the chief justice of the supreme court shall be as
 
12 follows:
 
13      (1)  Effective July 1, 1999, $        a year; and
 
14      (2)  Effective July 1, 2000, $        a year.
 
15      (b)  The salary of each associate justice of the supreme
 
16 court shall be as follows:
 
17      (1)  Effective July 1, 1999, $        a year; and
 
18      (2)  Effective July 1, 2000, $        a year."
 
19      SECTION 2.  Section 602-52, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 

 
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 1      "§602-52  Salary[.  Effective January 1, 1989, the salary of
 
 2 the chief judge of the intermediate appellate court shall be
 
 3 $87,199 a year and the salary of each associate judge shall be
 
 4 $85,699 a year.  Effective January 1, 1990, the salary of the
 
 5 chief judge of the intermediate appellate court shall be $91,280
 
 6 a year and the salary of each associate judge shall be $89,780 a
 
 7 year.] of intermediate appellate court judges.  (a)  The salary
 
 8 of the chief judge of the intermediate appellate court shall be
 
 9 as follows:
 
10      (1)  Effective July 1, 1999, $        a year; and
 
11      (2)  Effective July 1, 2000, $        a year.
 
12      (b)  The salary of each associate judge of the intermediate
 
13 appellate court shall be as follows:
 
14      (1)  Effective July 1, 1999, $        a year; and
 
15      (2)  Effective July 1, 2000, $        a year."
 
16      SECTION 3.  Section 603-5, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§603-5 Salary of circuit court judges.  [Effective
 
19 January 1, 1989, the salary of each circuit court judge of the
 
20 various circuit courts of the State shall be $82,699 a year.
 
21 Effective January 1, 1990, the salary of each circuit court judge
 
22 of the various circuit courts of the State shall be $86,780 a
 
23 year.]  The salary of each circuit court judge of the various
 

 
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 1 circuit courts of the State shall be as follows:
 
 2      (1)  Effective July 1, 1999, $        a year; and
 
 3      (2)  Effective July 1, 2000, $        a year."
 
 4      SECTION 4.  Section 604-2.5, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§604-2.5  Salary of district judges.  [Effective January 1,
 
 7 1989, the salary of each district court judge of the various
 
 8 district courts of the State shall be $77,699 a year.  Effective
 
 9 January 1, 1990, the salary of each district court judge of the
 
10 various district courts of the State shall be $81,780 a year.]
 
11 (a)  The salary of each district court judge of the various
 
12 district courts of the State shall be as follows:
 
13      (1)  Effective July 1, 1999, $        a year; and
 
14      (2)  Effective July 1, 2000, $        a year.
 
15      (b)  Whenever the chief justice appoints a district court
 
16 judge of any of the various district courts of the State to serve
 
17 temporarily as a circuit court judge of any of the various
 
18 circuit courts of the State, the judge shall receive per diem
 
19 compensation for the days on which actual service is rendered
 
20 based on the monthly rate of compensation paid to a circuit court
 
21 judge.  For the purpose of determining per diem compensation in
 
22 this section, a month shall be deemed to consist of twenty-one
 
23 days."
 

 
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 1      SECTION 5.  There is appropriated out of the general
 
 2 revenues of the State of Hawaii the sum of $          or so much
 
 3 thereof as may be necessary for fiscal year 1999-2000 and the sum
 
 4 of $          or so much thereof as may be necessary for fiscal
 
 5 year 2000-2001 for judicial salaries.
 
 6      The sums appropriated shall be expended by the judiciary for
 
 7 the purposes of this Act.
 
 8                              PART II
 
 9      SECTION 6.  Section 88-61, Hawaii Revised Statutes, is
 
10 amended by amending subsection (c) to read as follows:
 
11      "(c)  The membership of [an]:
 
12      (1)  An elective officer; [or judge]
 
13      (2)  A member who first enters service as a judge before
 
14           July 1, 1999;
 
15      (3)  A member who reenters service as a judge before July 1,
 
16           1999, without vested benefit status as provided in
 
17           section 88-96(b); or
 
18      (4)  A retirant who returns to service as a judge before
 
19           July 1, 1999,
 
20 in the system may be terminated upon election of the member to
 
21 retire whenever the allowance for such member reaches seventy-
 
22 five per cent of the member's average final compensation.  The
 
23 member's right to receive the retirement allowance prescribed in
 

 
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 1 section 88-74 after the member's future separation from service
 
 2 as provided in section 88-73 shall vest on the date of the
 
 3 election.  Upon the date of the election, the member shall be
 
 4 entitled to receive the portion of the accumulated contributions,
 
 5 if any, which would be required to be returned to the member
 
 6 under section 88-74(3)(B) as if the member's retirement allowance
 
 7 had commenced on that date, and after the date of the election
 
 8 the member shall not be allowed or required to make any future
 
 9 contributions."
 
10      SECTION 7.  Section 88-73, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§88-73  Service retirement.  Retirement of a member on a
 
13 service retirement allowance shall be made by the board of
 
14 trustees or its designee as follows:
 
15      (1)  Any member who has [at]
 
16           (A)  At least five years of credited service and who
 
17                has attained age fifty-five [or any member who has
 
18                at];
 
19           (B)  At least twenty-five years of credited service [or
 
20                any member who has at]; or
 
21           (C)  At least ten years of credited service, including
 
22                service as a judge, an elective officer, or the
 
23                chief clerk, assistant clerk, sergeant at arms, or
 

 
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 1                assistant sergeant at arms of either house of the
 
 2                legislature,
 
 3           may retire upon written application to the board
 
 4           specifying on what date, not less than thirty days nor
 
 5           more than ninety days subsequent to the execution and
 
 6           filing thereof, the member desires to be retired.
 
 7           In the event of the death of a member after the date of
 
 8           the filing of the member's written application to
 
 9           retire, the designated beneficiary, otherwise the
 
10           personal representative of the member's estate, shall
 
11           receive the allowance under the option selected by the
 
12           member which would have been payable had the member
 
13           retired, and the benefits paid to the beneficiary or
 
14           representative shall be computed as though the member
 
15           had died on or after the effective date of the member's
 
16           retirement;
 
17      (2)  Notwithstanding paragraph (1), any:
 
18           (A)  Member who first enters service as a judge after
 
19                June 30, 1999;
 
20           (B)  Member who reenters service as a judge after June
 
21                30, 1999, without vested benefit status as
 
22                provided in section 88-96(b); or
 
23           (C)  Retirant who returns to service as a judge after
 

 
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 1                June 30, 1999,
 
 2           may retire upon written application to the board
 
 3           specifying on what date, not less than thirty days nor
 
 4           more than ninety days subsequent to the execution and
 
 5           filing of the application, the member desires to be
 
 6           retired; provided that the member has at least five
 
 7           years of credited service and has attained age fifty-
 
 8           five or has at least twenty-five years of credited
 
 9           service.
 
10           In the event of the death of a member after the date of
 
11           the filing of the member's written application to
 
12           retire, the designated beneficiary, otherwise the
 
13           personal representative of the member's estate, shall
 
14           receive the allowance under the option selected by the
 
15           member which would have been payable had the member
 
16           retired, and the benefits paid to the beneficiary or
 
17           representative shall be computed as though the member
 
18           had died on or after the effective date of the member's
 
19           retirement;
 
20     [(2)] (3)  Any member of the legislature who attains age
 
21           sixty-five may retire and receive a service retirement
 
22           allowance although the member continues to fill the
 
23           elective position;
 

 
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 1     [(3)] (4)  For the purpose of computing or determining
 
 2           benefits for [an];
 
 3           (A)  An elective officer [or judge,];
 
 4           (B)  A member who first enters service as a judge
 
 5                before July 1, 1999;
 
 6           (C)  A member who reenters service as a judge before
 
 7                July 1, 1999, without vested benefit status as
 
 8                provided in section 88-96(b);
 
 9           (D)  A retirant who returns to service as a judge
 
10                before July 1, 1999; or [any]
 
11           (E)  Any beneficiary of [either,] (A) through (D),
 
12           the date upon which the elective officer or judge
 
13           elected to retire, as provided by section 88-61(c),
 
14           after attaining an allowance of seventy-five per cent
 
15           of average final compensation, shall be used as the
 
16           effective date of retirement; provided that the
 
17           elective officer or judge may continue in active
 
18           service, but shall not receive a retirement allowance
 
19           until termination of active service; [however,]
 
20           provided further that upon leaving active service the
 
21           elective officer or judge shall receive the retirement
 
22           allowance provided for in section 88-74, together with
 
23           the post retirement allowances provided for in section
 

 
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 1           88-90, which post retirement allowances shall be
 
 2           computed from the date of the election as though the
 
 3           elective officer or judge had left active service on
 
 4           that day; and
 
 5     [(4)] (5)  In the case of a class A or B member who also has
 
 6           prior credited service under part VII, total credited
 
 7           service as a class A, class B, and class C member shall
 
 8           be used to determine the eligibility for retirement
 
 9           allowance."
 
10      SECTION 8.  Section 88-74, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§88-74  Allowance on service retirement.  Upon retirement
 
13 from service, a member shall receive a retirement allowance as
 
14 follows:
 
15      (1)  If the member has attained age fifty-five, a retirement
 
16           allowance of two per cent of the member's average final
 
17           compensation multiplied by the total number of years of
 
18           the member's credited service as a class A and B
 
19           member, excluding any credited service as an elective
 
20           officer or legislative officer, plus a retirement
 
21           allowance of one and one-fourth per cent of the
 
22           member's average final compensation multiplied by the
 
23           total number of years of prior credited service as a
 

 
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 1           class C member; provided that:
 
 2           (A)  After June 30, 1968, if the member has at least
 
 3                ten years of credited service of which the last
 
 4                five or more years prior to retirement is credited
 
 5                service as a firefighter, police officer, or an
 
 6                investigator of the department of the prosecuting
 
 7                attorney;
 
 8           (B)  After June 30, 1977, if the member has at least
 
 9                ten years of credited service of which the last
 
10                five or more years prior to retirement is credited
 
11                service as a corrections officer;
 
12           (C)  After June 16, 1981, if the member has at least
 
13                ten years of credited service of which the last
 
14                five or more years prior to retirement is credited
 
15                service as an investigator of the department of
 
16                the attorney general;
 
17           (D)  After June 30, 1989, if the member has at least
 
18                ten years of credited service of which the last
 
19                five or more years prior to retirement is credited
 
20                service as a narcotics enforcement investigator; 
 
21           (E)  After December 31, 1993, if the member has at
 
22                least ten years of credited service of which the
 
23                last five or more years prior to retirement is
 

 
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 1                credited service as a water safety officer; and
 
 2           (F)  After June 30, 1994, if the member has at least
 
 3                ten years of credited service, of which the last
 
 4                five or more years prior to retirement are
 
 5                credited service as a public safety
 
 6                [investigative] investigations staff investigator;
 
 7           then for each year of service as a firefighter, police
 
 8           officer, corrections officer, investigator of the
 
 9           department of the prosecuting attorney, investigator of
 
10           the department of the attorney general, narcotics
 
11           enforcement investigator, water safety officer, or
 
12           public safety investigations staff investigator, the
 
13           retirement allowance shall be two and one-half per cent
 
14           of the member's average final compensation.  The
 
15           maximum retirement allowance for those members shall
 
16           not exceed eighty per cent of the member's average
 
17           final compensation.  If the member has not attained age
 
18           fifty-five, the member's retirement allowance shall be
 
19           computed as though the member had attained age fifty-
 
20           five, reduced in accordance with factors of actuarial
 
21           equivalence adopted by the board upon the advice of the
 
22           actuary; provided that no reduction shall be made if
 
23           the member has at least twenty-five years of credited
 

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

 
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 1                addition to an annuity that is the actuarial
 
 2                equivalent of the member's accumulated
 
 3                contributions allocable to the period of such
 
 4                service; and
 
 5           (B)  For all other credited service, as provided in
 
 6                paragraphs (1), (2) and [(4).] (5).  No allowance
 
 7                shall exceed seventy-five per cent of the member's
 
 8                average final compensation.  If the allowance
 
 9                exceeds this limit, it shall be adjusted by
 
10                reducing the annuity included in subparagraph (A),
 
11                and the portion of the accumulated contributions
 
12                specified in that subparagraph in excess of the
 
13                requirements of the reduced annuity shall be
 
14                returned to the member.
 
15           The allowance for judges under this paragraph, together
 
16           with the retirement allowance provided by the federal
 
17           government for similar service, shall in no case exceed
 
18           seventy-five per cent of the member's average final
 
19           compensation; [or]
 
20      (4)  Notwithstanding paragraph (3), if the person has
 
21           credited service as a judge and the person first
 
22           entered service as a judge after June 30, 1999, the
 
23           person reentered service as a judge after June 30,
 

 
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 1           1999, without vested benefit status as provided in
 
 2           section 88-96(b), or the person is a retirant who
 
 3           returns to service as a judge after June 30, 1999, the
 
 4           person's retirement allowance shall be computed on the
 
 5           following basis:
 
 6           (A)  If the member has attained age fifty-five, for
 
 7                each year of credited service as a judge, three
 
 8                and one-half per cent of the member's average
 
 9                final compensation in addition to an annuity that
 
10                is the actuarial equivalent of the member's
 
11                accumulated contributions allocable to the period
 
12                of such service; and
 
13           (B)  For all other credited service, as provided in
 
14                paragraphs (1), (2), and (5); or
 
15     [(4)] (5)  If the member has credited service as an elective
 
16           officer or as a legislative officer, the member's
 
17           retirement allowance shall be derived by adding the
 
18           allowances computed separately under subparagraphs (A),
 
19           (B), (C), and (D) as follows:
 
20           (A)  Irrespective of age, for each year of credited
 
21                service as an elective officer, three and one-half
 
22                per cent of the member's average final
 
23                compensation as computed under section
 

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

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

 
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 1 member's average final compensation for each full year of
 
 2 credited service; except that for each year of credited service
 
 3 as a judge, an elective officer, or a legislative officer, the
 
 4 member shall receive a retirement allowance computed as provided
 
 5 in section 88-74(3), [or] (4), or (5), as applicable.  The
 
 6 minimum retirement allowance payable under this section shall be
 
 7 thirty per cent of the member's average final compensation."
 
 8                             PART III
 
 9      SECTION 10.  If any provision of this Act, or the
 
10 application thereof to any person or circumstance is held
 
11 invalid, the invalidity does not affect other provisions or
 
12 applications of the Act which can be given effect without the
 
13 invalid provision or application, and to this end the provisions
 
14 of this Act are severable.
 
15      SECTION 11.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 12.  This Act shall take effect on July 1, 1999;
 
18 provided that:
 
19      (1)  With respect to current judges who are members of the
 
20           employees' retirement system as of June 30, 1999, the
 
21           member's accrued benefits shall not be diminished or
 
22           impaired by this Act; and
 

 
 
 
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 1      (2)  With respect to other individuals who are or were
 
 2           members of the employees' retirement system and who
 
 3           accrued benefits as judges before July 1, 1999, the
 
 4           member's accrued benefits shall not be diminished or
 
 5           impaired by this Act.