REPORT TITLE:
Government Pension Benefits


DESCRIPTION:
Allows a surviving spouse or reciprocal beneficiary of a member
of the Employees' Retirement System to remarry or enter into a
new reciprocal beneficiary relationship and to continue to
receive pension and other retirement benefits arising from their
former spouse's employment.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   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.  Chapter 88, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§88-    Reinstatement of benefits.  A surviving spouse or
 
 5 reciprocal beneficiary whose benefits under this chapter arose
 
 6 from the spouse's or reciprocal beneficiary's membership with the
 
 7 employees' retirement system, and whose pension or benefit was
 
 8 terminated by reason of remarriage or entry into a reciprocal
 
 9 beneficiary relationship occurring subsequent to the death of the
 
10 member, may apply for reinstatement of the terminated pension or
 
11 benefit.  The level of reinstated pension or benefit payments
 
12 shall be the amount received by the surviving spouse or
 
13 reciprocal beneficiary on the date that the payment was
 
14 terminated, adjusted to reflect ad hoc and scheduled increases
 
15 from the date of termination to the date of reinstatement."
 
16      SECTION 2.  Section 88-1, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§88-1 Restrictions.  The provisions of this section shall
 
19 be applicable to every pension and to every recipient or
 
20 beneficiary thereof, granted or provided for by any special act
 

 
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 1 of the legislature (other than benefits, or the recipients
 
 2 thereof, payable to beneficiaries or retirants of the employees'
 
 3 retirement system under [part II)] parts II and VII) whether the
 
 4 pension be payable by the State or by any county, or by any
 
 5 board, commission, bureau, department, or other agency thereof:
 
 6      (1)  No recipient or beneficiary shall be permitted to draw
 
 7           any pension, or any portion thereof, in excess of $50
 
 8           per month, while the recipient or beneficiary is
 
 9           holding any salaried position or office in, under, or
 
10           by authority of the United States, the State, or any
 
11           political subdivision thereof.  This paragraph shall
 
12           not apply to any recipient or beneficiary who is
 
13           elected to the legislature or to the council of any
 
14           county[.];
 
15      (2)  If the recipient or beneficiary is a surviving spouse
 
16           or reciprocal beneficiary, the pension so granted shall
 
17           [cease when the surviving spouse or reciprocal
 
18           beneficiary remarries, marries, or enters into a new
 
19           reciprocal beneficiary relationship.] continue;
 
20           provided that the surviving spouse or reciprocal
 
21           beneficiary makes the election to continue to receive
 
22           pension and other retirement benefits as provided for
 
23           in section 88-  ;
 

 
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 1      (3)  Any pension payable to any minor shall cease when the
 
 2           minor reaches the age of eighteen years[.]; and
 
 3      (4)  If any recipient or beneficiary of a pension, having a
 
 4           spouse or reciprocal beneficiary at the time the
 
 5           pension was first granted to the recipient or
 
 6           beneficiary dies, then the spouse or reciprocal
 
 7           beneficiary[, as long as the spouse or reciprocal
 
 8           beneficiary remains unmarried or not in a reciprocal
 
 9           beneficiary relationship,] shall be paid sixty per cent
 
10           of the amount of the pension payable to the
 
11           beneficiary[.]; provided that the surviving spouse or
 
12           reciprocal beneficiary makes the election to continue
 
13           to receive pension and other retirement benefits as
 
14           provided for in section 88-  ."
 
15      SECTION 3.  Section 88-85, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§88-85  Accidental death benefit.  Upon the receipt of
 
18 proper proofs of a member's death by the board of trustees, there
 
19 shall be paid to the member's designated beneficiary or to the
 
20 member's estate the amount of the member's accumulated
 
21 contributions and if, upon the receipt of evidence or proofs that
 
22 the death was the natural and proximate result of an accident
 
23 occurring at some definite time and place while the member was in
 

 
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 1 the actual performance of duty, or that the death was due to the
 
 2 result of some occupational hazard, the board shall decide that
 
 3 the death was the result of an accident in the performance of
 
 4 duty and not caused by wilful negligence on the part of the
 
 5 member, there shall be paid in lieu of the ordinary death
 
 6 benefits provided by the contributions of the State or county, a
 
 7 pension of one-half of the average final compensation of the
 
 8 member:
 
 9      (1)  To the surviving spouse or reciprocal beneficiary of
 
10           the member [to continue until the surviving spouse or
 
11           reciprocal beneficiary remarries, marries, or enters
 
12           into a new reciprocal beneficiary relationship]; or
 
13      (2)  If there be no surviving spouse or reciprocal
 
14           beneficiary, or if the surviving spouse or reciprocal
 
15           beneficiary dies or [remarries, marries, or enters into
 
16           a new reciprocal beneficiary relationship] before any
 
17           child of the deceased member shall have attained the
 
18           age of eighteen years, then to the deceased member's
 
19           child or children under such age, divided in such
 
20           manner as the board in its discretion shall determine,
 
21           to continue as a joint and survivor pension of one-half
 
22           of the deceased member's final compensation until every
 
23           child dies, or attains such age; or
 

 
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 1      (3)  If there is no surviving spouse or reciprocal
 
 2           beneficiary or child under the age of eighteen years
 
 3           surviving the deceased member, then to the deceased
 
 4           member's dependent father or dependent mother, as the
 
 5           deceased member shall have nominated by written
 
 6           designation duly acknowledged and filed with the board,
 
 7           or if there is no such nomination, then to the deceased
 
 8           member's dependent father or to the deceased member's
 
 9           dependent mother as the board, in its discretion, shall
 
10           direct to continue for life.
 
11      Notwithstanding any other law to the contrary, any condition
 
12 of impairment of health caused by any disease of the heart,
 
13 lungs, or respiratory system, resulting in death to a
 
14 firefighter, police officer, or sewer worker, shall be presumed
 
15 to have been suffered in the actual performance of duty at some
 
16 definite time and place through no wilful negligence on the
 
17 firefighter's, police officer's, or sewer worker's part, and as a
 
18 result of the inherent occupational hazard of exposure to and
 
19 inhalation of smoke, toxic gases, chemical fumes, and other toxic
 
20 vapors, unless the contrary be shown by competent evidence;
 
21 provided that such firefighter, police officer, or sewer worker
 
22 shall have passed a physical examination on entry into such
 
23 service or subsequent to such entry, which examination failed to
 

 
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 1 reveal any evidence of such condition."
 
 2      SECTION 4.  Section 88-163, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§88-163  Death benefits:  funeral expenses; payments to
 
 5 dependents.(a)  Upon the death of any member of the police
 
 6 force, fire department, or band, as a result of any injury
 
 7 received or disease contracted while in the performance of his
 
 8 duty, or when entitled to a pension under this part or who has
 
 9 been pensioned under this part there shall be paid, for funeral
 
10 expenses, a sum not to exceed $100.  Should the deceased member
 
11 leave a dependent widow or reciprocal beneficiary and a child or
 
12 children under the age of eighteen years, then there shall be
 
13 paid out of the system $50 per month to the widow until her death
 
14 [or remarriage] or to the reciprocal beneficiary until death,
 
15 [marriage, or entry into a new reciprocal beneficiary
 
16 relationship] and $7.50 per month to the widow or reciprocal
 
17 beneficiary for each child so long as the child shall reside with
 
18 the widow or reciprocal beneficiary or is supported by the widow
 
19 or reciprocal beneficiary.  Upon the death of such widow or
 
20 reciprocal beneficiary, or in the event the deceased member
 
21 leaves no widow or reciprocal beneficiary but a child or children
 
22 under the age of eighteen years, then there shall be paid out of
 
23 the system $50 per month to the child or children of the deceased
 

 
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 1 member under the age of eighteen years with each child, if there
 
 2 be more than one, receiving an equal share of the $50 per month
 
 3 payment plus $7.50 per month.  All payments to a child of a
 
 4 deceased member provided for herein shall cease when he or she
 
 5 arrives at the age of eighteen years.
 
 6      (b)  If any member of the police force, fire department, or
 
 7 band, dies not leaving a widow or reciprocal beneficiary, but
 
 8 leaving a father or mother dependent upon him, the father or
 
 9 mother (but not both) shall, upon satisfactory proof of
 
10 dependency being made to the board of trustees receive from the
 
11 system a sum not exceeding $50 per month.  The board shall
 
12 determine whether the father or mother is dependent and how much
 
13 of the amount herein provided for shall be paid to him or her.
 
14 If there be no widow or reciprocal beneficiary and no child and
 
15 no father or mother, but dependent brothers or sisters, then such
 
16 pension shall be paid to them in such sums as shall not exceed
 
17 the aggregate amount of $30 per month.  All pensions authorized
 
18 as provided in this subsection shall be subject to reduction by
 
19 the board of trustees whenever, in its judgment, circumstances
 
20 make it reasonable, fair, or necessary.  All pensions so reduced
 
21 may thereafter be restored or further reduced as the board may
 
22 deem best.
 
23      (c)  [On the remarriage of any widow or reciprocal
 

 
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 1 beneficiary entitled to the benefits of any sum, or in] In the
 
 2 event of any father or mother, brothers or sisters [ceasing]
 
 3 cease to be dependents then the payments to them shall cease."
 
 4      SECTION 5.  Section 88-286, Hawaii Revised Statutes, is
 
 5 amended by amending subsections (b) and (c) to read as follows:
 
 6      "(b)  In the case of ordinary death, the death benefit shall
 
 7 be as follows:
 
 8      (1)  For the surviving spouse or reciprocal beneficiary, an
 
 9           allowance equal to one-half of the member's accrued
 
10           normal retirement allowance unreduced for age, payable
 
11           [until remarriage, marriage, or entry into a new
 
12           reciprocal beneficiary relationship[,]] as if the
 
13           member had retired the day prior to death; and for each
 
14           dependent child an allowance equal to ten per cent of
 
15           the member's accrued normal retirement allowance
 
16           unreduced for age, payable until the dependent child
 
17           attains age eighteen; provided that the aggregate death
 
18           benefits for all the dependent children shall not
 
19           exceed twenty per cent of the member's accrued normal
 
20           retirement allowance unreduced for age; or
 
21      (2)  For the surviving spouse [[]or reciprocal
 
22           beneficiary[]], if the member was eligible for
 
23           retirement at the time of death in service, and death
 

 
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 1           occurred after June 30, 1990, an allowance that would
 
 2           have been payable as if the member had retired the day
 
 3           prior to death and had elected to receive a retirement
 
 4           allowance under option B of section 88-283; and
 
 5      (3)  If there is no surviving spouse or reciprocal
 
 6           beneficiary, each dependent child shall receive an
 
 7           allowance equal to twenty per cent of the member's
 
 8           accrued normal retirement allowance unreduced for age,
 
 9           payable until the dependent child attains age eighteen;
 
10           provided that the aggregate death benefits for all the
 
11           dependent children shall not exceed forty per cent of
 
12           the member's accrued normal retirement allowance
 
13           unreduced for age.
 
14      For the purpose of determining eligibility for the ordinary
 
15 death benefit, a year round school employee shall be considered
 
16 in service during the July and August preceding a transfer to a
 
17 traditional school schedule if the employee was in service for
 
18 the entire prior school year and has a contract for the upcoming
 
19 traditional school year.
 
20      (c)  In the case of accidental death, the death benefit
 
21 shall be as follows:
 
22      (1)  For the surviving spouse[,] or reciprocal beneficiary,
 
23           an allowance equal to thirty per cent of the member's
 

 
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 1           average final compensation, payable until [remarriage;]
 
 2           the death of the surviving spouse or reciprocal
 
 3           beneficiary;
 
 4      (2)  If there is a surviving spouse or reciprocal
 
 5           beneficiary, each dependent child under eighteen shall
 
 6           receive an allowance equal to the greater of:
 
 7           (A)  Ten per cent of the member's accrued normal
 
 8                retirement allowance, unreduced for age; provided
 
 9                that the aggregate death benefits for all the
 
10                dependent children shall not exceed twenty per
 
11                cent of the member's accrued normal retirement
 
12                allowance unreduced for age; or
 
13           (B)  Three per cent of the member's average final
 
14                compensation; provided that the aggregate death
 
15                benefits for all the dependent children shall not
 
16                exceed six per cent of the member's average final
 
17                compensation.
 
18           The death benefit under this paragraph shall be payable
 
19           to each dependent child until the dependent child
 
20           attains age eighteen; and
 
21      (3)  If there is no surviving spouse or reciprocal
 
22           beneficiary, each dependent child under eighteen shall
 
23           receive an allowance equal to the greater of:
 

 
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 1           (A)  Twenty per cent of the member's accrued normal
 
 2                retirement allowance, unreduced for age; provided
 
 3                that the aggregate death benefits for all the
 
 4                dependent children shall not exceed forty per cent
 
 5                of the member's accrued normal retirement
 
 6                allowance unreduced for age; or
 
 7           (B)  Six per cent of the member's average final
 
 8                compensation; provided that the aggregate death
 
 9                benefits for all the dependent children shall not
 
10                exceed twelve per cent of the member's average
 
11                final compensation.
 
12           The death benefit under this paragraph shall be payable
 
13           to each dependent child until the dependent child
 
14           attains age eighteen."
 
15      SECTION 6.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 7.  This Act shall take effect upon its approval.