REPORT TITLE:
ERS


DESCRIPTION:
Gives current conservation and resources law enforcement officers
of the department of land and natural resources the option of
converting from class C to class A members of the Employees'
Retirement System (ERS).  Allows officers to retire without
penalty after 25 years of service in that capacity.  Provides
that all officers hired after June 30, 1999, are to be designated
class A members.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2032
TWENTIETH LEGISLATURE, 2000                                
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 88-21, Hawaii Revised Statutes, is
 
 2 amended by adding a new definition to be appropriately inserted
 
 3 and to read as follows:
 
 4      ""Conservation and resources law enforcement officer":  any
 
 5 regularly employed member of the department of land and natural
 
 6 resources commissioned with full police powers whose principal
 
 7 duty is to enforce conservation laws and protect the State's
 
 8 natural resources."
 
 9      SECTION 2.  Section 88-45, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§88-45  Employee contributions.  (a)  After June 30, 1988,
 
12 each class A and class B member shall contribute seven and eight-
 
13 tenths per cent of the member's compensation to the annuity
 
14 savings fund[; provided that after] for service in that capacity.
 
15      (b)  After June 30, 1989, all firefighters, police officers,
 
16 corrections officers, investigators of the departments of the
 
17 prosecuting attorney and of the attorney general, narcotics
 
18 enforcement investigators, water safety officers not making the
 
19 election under section 88-271, and public safety investigations
 

 
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 1 staff investigators shall contribute twelve and two-tenths per
 
 2 cent of their compensation to the annuity savings fund for
 
 3 service in that capacity.
 
 4      (c)  After June 30, 2000, all conservation and resources law
 
 5 enforcement officers, unless the conservation or resources law
 
 6 enforcement officer has opted not to become a class A member
 
 7 pursuant to Act    , Session Laws of Hawaii 2000, shall
 
 8 contribute twelve and two-tenths per cent of their compensation 
 
 9 to the annuity savings fund for service in that capacity." 
 
10      SECTION 3.  Section 88-47, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  There shall be three classes of members in the system
 
13 to be known as class A, class B, and class C, defined as follows:
 
14      (1)  Class A shall consist of members covered by section
 
15           88-74(3), those members whose salaries are set forth in
 
16           sections 26-52 and 26-53, and their county
 
17           counterparts, managing directors or administrative
 
18           assistant to the mayor, and other department heads,
 
19           including agency heads appointed by the mayor, first
 
20           deputies appointed by the county attorney and
 
21           prosecuting attorney, the county clerk and deputy
 
22           county clerk of each county, the administrative
 
23           director of the courts, the deputy administrative
 

 
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 1           director of the courts, the executive [director]
 
 2           officer of the labor and industrial relations appeals
 
 3           board, the executive [director] officer of the Hawaii
 
 4           labor relations board, investigators of the department
 
 5           of the attorney general, narcotics enforcement
 
 6           investigators, water safety officers not making the
 
 7           election under section 88-271, public safety
 
 8           investigations staff investigators, conservation and
 
 9           resources law enforcement officers, and those members
 
10           in service prior to July 1, 1984, including those who
 
11           are on approved leave of absence, who are covered by
 
12           Title II of the Social Security Act on account of
 
13           service creditable under this part.  This class shall
 
14           consist of:
 
15           (A)  All employees who enter membership after June 30,
 
16                1957, except employees in positions to which
 
17                coverage under Title II of the Social Security Act
 
18                is not extended;
 
19           (B)  All employees who were members on July 1, 1957,
 
20                who elected to be covered by the Social Security
 
21                Act; and
 
22           (C)  All former class A retirants who return to
 
23                employment after June 30, 1984, requiring the
 

 
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 1                retirant's active membership;
 
 2      (2)  Class B shall consist of all members who are not class
 
 3           A or class C members; and
 
 4      (3)  Except for members described in [section 88-47(a)(1),]
 
 5           subsection (a)(1), class C shall consist of all
 
 6           employees in positions covered by Title II of the
 
 7           Social Security Act who:
 
 8           (A)  First enter service after June 30, 1984;
 
 9           (B)  Reenter service after June 30, 1984, without
 
10                vested benefit status as provided in section
 
11                88-96(b);
 
12           (C)  Make the election to become a class C member as
 
13                provided in part VII; [or]
 
14           (D)  Are former class C retirants who return to service
 
15                requiring the retirant's active membership[.]; or
 
16           (E)  Any conservation and resources law enforcement
 
17                officer who elected not to become a class A member
 
18                pursuant to Act    , Session Laws of Hawaii 2000."
 
19      SECTION 4.  Section 88-74, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§88-74  Allowance on service retirement.  Upon retirement
 
22 from service, a member shall receive a retirement allowance as
 
23 follows:
 

 
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 1      (1)  If the member has attained age fifty-five, a retirement
 
 2           allowance of two per cent of the member's average final
 
 3           compensation multiplied by the total number of years of
 
 4           the member's credited service as a class A [and] or
 
 5           class B member, excluding any credited service as a
 
 6           judge, elective officer, or legislative officer, plus a
 
 7           retirement allowance of one and one-fourth per cent of
 
 8           the member's average final compensation multiplied by
 
 9           the total number of years of prior credited service as
 
10           a class C member; provided that:
 
11           (A)  After June 30, 1968, if the member has at least
 
12                ten years of credited service of which the last
 
13                five or more years prior to retirement is credited
 
14                service as a firefighter, police officer, or an
 
15                investigator of the department of the prosecuting
 
16                attorney;
 
17           (B)  After June 30, 1977, 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 corrections officer;
 
21           (C)  After June 16, 1981, if the member has at least
 
22                ten years of credited service of which the last
 
23                five or more years prior to retirement is credited
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1                service as an investigator of the department of
 
 2                the attorney general;
 
 3           (D)  After June 30, 1989, if the member has at least
 
 4                ten years of credited service of which the last
 
 5                five or more years prior to retirement is credited
 
 6                service as a narcotics enforcement investigator; 
 
 7           (E)  After December 31, 1993, if the member has at
 
 8                least ten years of credited service of which the
 
 9                last five or more years prior to retirement is
 
10                credited service as a water safety officer; and
 
11           (F)  After June 30, 1994, if the member has at least
 
12                ten years of credited service[,] of which the last
 
13                five or more years prior to retirement [are] is
 
14                credited service as a public safety investigations
 
15                staff investigator; and
 
16           (G)  After June 30, 2000, if the member has at least
 
17                ten years of credited service of which the last
 
18                five or more years prior to retirement is credited
 
19                service as a conservation and resources law
 
20                enforcement officer;
 
21           then for each year of service as a firefighter, police
 
22           officer, corrections officer, investigator of the
 
23           department of the prosecuting attorney, investigator of
 

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

 
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 1           is credited service in such capacities;
 
 2      (2)  If the member has made voluntary additional
 
 3           contributions for the purchase of an additional annuity
 
 4           and has not applied for a refund as permitted by
 
 5           section 88-72, the member may accept the refund at the
 
 6           time of retirement or, in lieu thereof, receive in
 
 7           addition to the retirement allowance provided in
 
 8           paragraph (1), an annuity that is the actuarial
 
 9           equivalent of the additional contributions with regular
 
10           interest;
 
11      (3)  If the member has credited service as a judge, the
 
12           member's retirement allowance shall be computed on the
 
13           following basis:
 
14           (A)  For a member who has credited service as a judge
 
15                before July 1, 1999, irrespective of age, for each
 
16                year of credited service as a judge, three and
 
17                one-half per cent of the member's average final
 
18                compensation in addition to an annuity that is the
 
19                actuarial equivalent of the member's accumulated
 
20                contributions allocable to the period of such
 
21                service; and
 
22           (B)  For a member who first earned credited service as
 
23                a judge after June 30, 1999, for each year of
 

 
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 1                credited service as a judge, three and one-half
 
 2                per cent of the member's average final
 
 3                compensation in addition to an annuity that is the
 
 4                actuarial equivalent of the member's accumulated
 
 5                contributions allocable to the period of such
 
 6                service.  If the member has not attained age
 
 7                fifty-five, the member's retirement allowance
 
 8                shall be computed as though the member had
 
 9                attained age fifty-five, reduced in accordance
 
10                with factors of actuarial equivalence adopted by
 
11                the board upon the advice of the actuary; or
 
12           (C)  For a judge with other credited service, as
 
13                provided in paragraphs (1) and (2).  If the member
 
14                has not attained age fifty-five, the member's
 
15                retirement allowance shall be computed as though
 
16                the member had attained age fifty-five, reduced in
 
17                accordance with factors of actuarial equivalence
 
18                adopted by the board upon the advice of the
 
19                actuary; or
 
20           (D)  For a judge with credited service as an elective
 
21                officer or as a legislative officer, as provided
 
22                in paragraph (4).
 
23           No allowance shall exceed seventy-five per cent of the
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1           member's average final compensation.  If the allowance
 
 2           exceeds this limit, it shall be adjusted by reducing
 
 3           the annuity included in subparagraphs (A) and (B) and
 
 4           the portion of the accumulated contributions specified
 
 5           in the subparagraphs in excess of the requirements of
 
 6           the reduced annuity shall be returned to the member.
 
 7           The allowance for judges under this paragraph, together
 
 8           with the retirement allowance provided by the federal
 
 9           government for similar service, shall in no case exceed
 
10           seventy-five per cent of the member's average final
 
11           compensation; or
 
12     (4)   If the member has credited service as an elective
 
13           officer or as a legislative officer, the member's
 
14           retirement allowance shall be derived by adding the
 
15           allowances computed separately under subparagraphs (A),
 
16           (B), (C), and (D) as follows:
 
17           (A)  Irrespective of age, for each year of credited
 
18                service as an elective officer, three and one-half
 
19                per cent of the member's average final
 
20                compensation as computed under section
 
21                88-81(d)(1), in addition to an annuity that is the
 
22                actuarial equivalent of the member's accumulated
 
23                contributions allocable to the period of service;
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1                [and]
 
 2           (B)  Irrespective of age, for each year of credited
 
 3                service as a legislative officer, three and one-
 
 4                half per cent of the member's average final
 
 5                compensation as computed under section
 
 6                88-81(d)(2), in addition to an annuity that is the
 
 7                actuarial equivalent of the member's accumulated
 
 8                contributions allocable to the period of service;
 
 9           (C)  If the member has credited service as a judge, the
 
10                member's retirement allowance shall be computed on
 
11                the following basis:
 
12                (i)  For a member who has credited service as a
 
13                     judge before July 1, 1999, irrespective of
 
14                     age, for each year of credited service as a
 
15                     judge, three and one-half per cent of the
 
16                     member's average final compensation as
 
17                     computed under section 88-81(d)(3), in
 
18                     addition to an annuity that is the actuarial
 
19                     equivalent of the member's accumulated
 
20                     contributions allocable to the period of such
 
21                     service; and
 
22               (ii)  For a member who first earned credited
 
23                     service as a judge after June 30, 1999, and
 

 
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 1                     has attained the age of fifty-five, for each
 
 2                     year of credited service as a judge, three
 
 3                     and one-half per cent of the member's average
 
 4                     final compensation as computed under section
 
 5                     88-81(d)(3), in addition to an annuity that
 
 6                     is the actuarial equivalent of the member's
 
 7                     accumulated contributions allocable to the
 
 8                     period of such service. If the member has not
 
 9                     attained age fifty-five, the member's
 
10                     retirement allowance shall be computed as
 
11                     though the member had attained age fifty-
 
12                     five, reduced in accordance with factors of
 
13                     actuarial equivalence adopted by the board
 
14                     upon the advice of the actuary; and
 
15           (D)  For each year of credited service not included in
 
16                subparagraph (A), (B), or (C), the average final
 
17                compensation as computed under section 88-81(d)(4)
 
18                shall be multiplied by two per cent, two and one-
 
19                half per cent, or one and one-quarter per cent, as
 
20                applicable to the credited service earned as a
 
21                class A, B, or C member, respectively.  If the
 
22                member has not attained age fifty-five, the
 
23                member's retirement allowance shall be computed as
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1                though the member had attained age fifty-five,
 
 2                reduced in accordance with factors of actuarial
 
 3                equivalence adopted by the board upon the advice
 
 4                of the actuary.
 
 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
 
 8           88-81(d)(1), (2), (3), or (4).  If the allowance
 
 9           exceeds this limit, it shall be adjusted by reducing
 
10           any annuity accrued under subparagraphs (A), (B), and
 
11           (C) 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 5.  Section 88-281, Hawaii Revised Statutes, is
 
21 amended by amending subsection (b) to read as follows:
 
22      "(b)  If a member has at least twenty-five years of credited
 
23 service as a sewer worker [or as a], water safety officer, or
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1 conservation and resources law enforcement officer, of which the
 
 2 last five or more years prior to retirement is credited in such a
 
 3 capacity, then the sewer worker [or], water safety officer, or
 
 4 conservation and resources law enforcement officer, shall be
 
 5 eligible to receive a normal retirement benefit unreduced for
 
 6 age."
 
 7      SECTION 6.  (a)  Notwithstanding any other law to the
 
 8 contrary, conservation and resources law enforcement officers of
 
 9 the department of land and natural resources who are in service
 
10 prior to the effective date of this Act may convert to class A
 
11 membership; provided that their membership service before
 
12 July 1, 2000, shall remain at class C level.  An election form
 
13 indicating the option selected shall be filed with the board of
 
14 trustees prior to December 1, 2000.  The election filed with the
 
15 board of trustees shall be irrevocable.
 
16      (b)  All conservation and resources law enforcement officers
 
17 of the department of land and natural resources hired after
 
18 June 30, 2000, shall be designated class A members of the
 
19 employees' retirement system.
 
20      SECTION 7.  The revisor of statutes shall insert the number
 
21 of this Act after word Act in sections 88-45(c), and
 
22 88-47(a)(3)(E), Hawaii Revised Statutes. 
 
23      SECTION 8.  Statutory material to be repealed is bracketed.
 

 
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                                     S.B. NO.           2032
                                                        
                                                        

 
 1 New statutory material is underscored.
 
 2      SECTION 9.  This Act shall take effect on July 1, 2000.
 
 3 
 
 4                           INTRODUCED BY:  _______________________