REPORT TITLE:
Civil Service


DESCRIPTION:
Authorizes early retirement for teachers.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2045
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO EARLY RETIREMENT.



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

 1      SECTION 1.  Special retirement incentive benefits.  (a)  Any
 
 2 employee of the department of education who is a teacher of
 
 3 elective or nondemand subjects, may elect, if the employee is a
 
 4 vested member of the employees' retirement system and meets any
 
 5 of the criteria specified in subsection (e), the special
 
 6 retirement benefit provided by this section.  To receive the
 
 7 special retirement incentive benefits offered under this section,
 
 8 the employee shall comply with the application and time frame
 
 9 requirements specified in subsections (b) and (c).
 
10      (b)  Any employee who elects to retire and receive the
 
11 benefit under this section shall notify the department of
 
12 education by filing a formal application for retirement not less
 
13 than thirty days nor more than ninety days prior to the date of
 
14 retirement.
 
15      (c)  All employees who file a formal application for
 
16 retirement under subsection (b), shall retire within the period
 
17 from July 1, 2000, to June 30, 2001.
 
18      (d)  A one-time early retirement service credit of two
 
19 additional years under chapter 88, Hawaii Revised Statutes, shall
 

 
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 1 be provided to employees who elect to retire pursuant to this
 
 2 Act.
 
 3      (e)  Notwithstanding the age and length of service
 
 4 requirements of section 88-73, Hawaii Revised Statutes, a member
 
 5 shall qualify for the bonus provided under subsection (d) under
 
 6 one of the following:
 
 7      (1)  The member is at least fifty years of age and has at
 
 8           least ten years of credited service as a contributory
 
 9           class A or B member, exclusive of the bonus provided in
 
10           subsection (d), prior to filing a formal application
 
11           for retirement as provided in subsection (b);
 
12      (2)  Irrespective of age, the member has at least twenty
 
13           years of credited service as a contributory class A or
 
14           B member, exclusive of the bonus provided in subsection
 
15           (d), prior to filing a formal application for
 
16           retirement as provided in subsection (b);
 
17      (3)  The member is at least fifty-seven years of age and has
 
18           at least ten years of credited service as a
 
19           noncontributory class C member, exclusive of the bonus
 
20           provided in subsection (d), prior to filing a formal
 
21           application for retirement as provided in subsection
 
22           (b);
 
23      (4)  Irrespective of age, the member has at least
 

 
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 1           twenty-five years of credited service as a
 
 2           noncontributory class C member, exclusive of the bonus
 
 3           provided in subsection (d), prior to filing a formal
 
 4           application for retirement as provided in subsection
 
 5           (b).
 
 6      (f)  The additional service credit shall not increase the
 
 7 amount of total credited service or retirement allowance of the
 
 8 member beyond any maximum limitation on service credit or
 
 9 retirement allowance established by chapter 88, Hawaii Revised
 
10 Statutes.
 
11      (g)  The member shall forfeit the additional service credit
 
12 and any other benefit provided by chapter 88, Hawaii Revised
 
13 Statutes, that was based on the early retirement bonus upon
 
14 subsequent reemployment by the department of education or reentry
 
15 into the employees' retirement system.
 
16      (h)  The superintendent of education shall transmit a list
 
17 of participants whose positions are eliminated to the board of
 
18 trustees of the employees' retirement system by October 31, of
 
19 the years 2000 and 2001.
 
20      (i)  Any employee who exercises the option of early
 
21 retirement pursuant to this section but who does not qualify with
 
22 respect to the age and length of service requirements under
 
23 section 88-73, Hawaii Revised Statutes, to receive a retirement
 

 
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 1 benefit without penalty, shall not have their retirement benefit
 
 2 reduced in accordance with the actuarial formula normally used by
 
 3 the employees' retirement system for the calculation of early
 
 4 retirement benefits.
 
 5      SECTION 2.  The board of trustees of the employees'
 
 6 retirement system shall make payments with respect to all
 
 7 eligible employees who retire pursuant to section 1 of this Act.
 
 8      The board shall determine the amount equal to the actuarial
 
 9 present value of the difference between allowances members
 
10 receive after the receipt of service credit under section 1 of
 
11 this Act and the allowances members would have received without
 
12 two years of additional service credit.  The board shall also
 
13 determine the portion of the additional actuarial present value
 
14 of benefits to be charged to the State and to each county, based
 
15 on retirements during the early retirement incentive bonus
 
16 period.  The State shall make additional payments to the
 
17 employees' retirement system in the amounts required to liquidate
 
18 the additional actuarial present value of benefits over a period
 
19 of five years beginning January 1, 2002.
 
20      SECTION 3.  This Act shall take effect upon its approval.
 
21 
 
22                           INTRODUCED BY:  _______________________