REPORT TITLE:
ERS


DESCRIPTION:
Provides plumbers and persons in a related series with similar
retirement benefits to that of public safety investigators.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3087
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO EMPLOYEES RETIREMENT SYSTEM.



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

 1      SECTION 1.  Section 88-45, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§88-45  Employee contributions.  After June 30, 1988, each
 
 4 class A and class B member shall contribute seven and eight-
 
 5 tenths per cent of the member's compensation to the annuity
 
 6 savings fund; provided that after June 30, 1989, all
 
 7 firefighters, police officers, corrections officers,
 
 8 investigators of the departments of the prosecuting attorney and
 
 9 of the attorney general, narcotics enforcement investigators,
 
10 water safety officers not making the election under section
 
11 88-271, plumbers and persons in a related series, and public
 
12 safety investigations staff investigators shall contribute twelve
 
13 and two-tenths per cent of their compensation to the annuity
 
14 savings fund for service in that capacity."
 
15      SECTION 2.  Section 88-47, Hawaii Revised Statutes, is
 
16 amended by amending subsection (a) to read as follows:
 
17      "(a)  There shall be three classes of members in the system
 
18 to be known as class A, class B, and class C, defined as follows:
 
19      (1)  Class A shall consist of members covered by section
 

 
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 1           88-74(3), those members whose salaries are set forth in
 
 2           sections 26-52 and 26-53, and their county
 
 3           counterparts, managing directors or administrative
 
 4           assistant to the mayor, and other department heads,
 
 5           including agency heads appointed by the mayor, first
 
 6           deputies appointed by the county attorney and
 
 7           prosecuting attorney, the county clerk and deputy
 
 8           county clerk of each county, the administrative
 
 9           director of the courts, the deputy administrative
 
10           director of the courts, the executive director of the
 
11           labor and industrial relations appeals board, the
 
12           executive director of the Hawaii labor relations board,
 
13           investigators of the department of the attorney
 
14           general, narcotics enforcement investigators, water
 
15           safety officers not making the election under section
 
16           88-271, public safety investigations staff
 
17           investigators, plumbers and persons in a related
 
18           series, and those members in service prior to July 1,
 
19           1984, including those who are on approved leave of
 
20           absence, who are covered by Title II of the Social
 
21           Security Act on account of service creditable under
 
22           this part.  This class shall consist of:
 
23           (A)  All employees who enter membership after June 30,
 

 
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 1                1957, except employees in positions to which
 
 2                coverage under Title II of the Social Security Act
 
 3                is not extended;
 
 4           (B)  All employees who were members on July 1, 1957,
 
 5                who elected to be covered by the Social Security
 
 6                Act; and
 
 7           (C)  All former class A retirants who return to
 
 8                employment after June 30, 1984, requiring the
 
 9                retirant's active membership;
 
10      (2)  Class B shall consist of all members who are not class
 
11           A or class C members; and
 
12      (3)  Except for members described in [section 88-47(a)(1),]
 
13           subsection (a)(1), class C shall consist of all
 
14           employees in positions covered by Title II of the
 
15           Social Security Act who:
 
16           (A)  First enter service after June 30, 1984;
 
17           (B)  Reenter service after June 30, 1984, without
 
18                vested benefit status as provided in section
 
19                88-96(b);
 
20           (C)  Make the election to become a class C member as
 
21                provided in part VII; or
 
22           (D)  Are former class C retirants who return to service
 
23                requiring the retirant's active membership."
 

 
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 1      SECTION 3.  Section 88-74, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§88-74  Allowance on service retirement.  Upon retirement
 
 4 from service, a member shall receive a retirement allowance as
 
 5 follows:
 
 6      (1)  If the member has attained age fifty-five, a retirement
 
 7           allowance of two per cent of the member's average final
 
 8           compensation multiplied by the total number of years of
 
 9           the member's credited service as a class A and B
 
10           member, excluding any credited service as a judge,
 
11           elective officer, or legislative officer, plus a
 
12           retirement allowance of one and one-fourth per cent of
 
13           the member's average final compensation multiplied by
 
14           the total number of years of prior credited service as
 
15           a class C member; provided that:
 
16           (A)  After June 30, 1968, 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 firefighter, police officer, or an
 
20                investigator of the department of the prosecuting
 
21                attorney;
 
22           (B)  After June 30, 1977, if the member has at least
 
23                ten years of credited service of which the last
 

 
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 1                five or more years prior to retirement is credited
 
 2                service as a corrections officer;
 
 3           (C)  After June 16, 1981, 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 an investigator of the department of
 
 7                the attorney general;
 
 8           (D)  After June 30, 1989, 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 narcotics enforcement investigator; 
 
12           (E)  After December 31, 1993, if the member has at
 
13                least ten years of credited service of which the
 
14                last five or more years prior to retirement is
 
15                credited service as a water safety officer; [and]
 
16           (F)  After June 30, 1994, if the member has at least
 
17                ten years of credited service, of which the last
 
18                five or more years prior to retirement are
 
19                credited service as a public safety investigations
 
20                staff investigator; and
 
21           (G)  After June 30, 1999, if the member has at least
 
22                ten years of credited service, of which the last
 
23                five or more years prior to retirement are
 

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

 
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 1           narcotics enforcement investigator, public safety
 
 2           investigations staff investigator, sewer worker,
 
 3           plumber and related series, or water safety officer, of
 
 4           which the last five or more years prior to retirement
 
 5           is credited service in such capacities;
 
 6      (2)  If the member has made voluntary additional
 
 7           contributions for the purchase of an additional annuity
 
 8           and has not applied for a refund as permitted by
 
 9           section 88-72, the member may accept the refund at the
 
10           time of retirement or, in lieu thereof, receive in
 
11           addition to the retirement allowance provided in
 
12           paragraph (1), an annuity that is the actuarial
 
13           equivalent of the additional contributions with regular
 
14           interest;
 
15      (3)  If the member has credited service as a judge, the
 
16           member's retirement allowance shall be computed on the
 
17           following basis:
 
18           (A)  For a member who has credited service as a judge
 
19                before July 1, 1999, irrespective of age, for each
 
20                year of credited service as a judge, three and
 
21                one-half per cent of the member's average final
 
22                compensation in addition to an annuity that is the
 
23                actuarial equivalent of the member's accumulated
 

 
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 1                contributions allocable to the period of such
 
 2                service; and
 
 3           (B)  For a member who first earned credited service as
 
 4                a judge after June 30, 1999, for each year of
 
 5                credited service as a judge, three and one-half
 
 6                per cent of the member's average final
 
 7                compensation in addition to an annuity that is the
 
 8                actuarial equivalent of the member's accumulated
 
 9                contributions allocable to the period of such
 
10                service.  If the member has not attained age
 
11                fifty-five, the member's retirement allowance
 
12                shall be computed as though the member had
 
13                attained age fifty-five, reduced in accordance
 
14                with factors of actuarial equivalence adopted by
 
15                the board upon the advice of the actuary; or
 
16           (C)  For a judge with other credited service, as
 
17                provided in paragraphs (1) and (2).  If the member
 
18                has not attained age fifty-five, the member's
 
19                retirement allowance shall be computed as though
 
20                the member had attained age fifty-five, reduced in
 
21                accordance with factors of actuarial equivalence
 
22                adopted by the board upon the advice of the
 
23                actuary; or
 

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

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

 
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 1                     contributions allocable to the period of such
 
 2                     service; and
 
 3               (ii)  For a member who first earned credited
 
 4                     service as a judge after June 30, 1999, and
 
 5                     has attained the age of fifty-five, for each
 
 6                     year of credited service as a judge, three
 
 7                     and one-half per cent of the member's average
 
 8                     final compensation as computed under section
 
 9                     88-81(d)(3), in addition to an annuity that
 
10                     is the actuarial equivalent of the member's
 
11                     accumulated contributions allocable to the
 
12                     period of such service. If the member has not
 
13                     attained age fifty-five, the member's
 
14                     retirement allowance shall be computed as
 
15                     though the member had attained age fifty-
 
16                     five, reduced in accordance with factors of
 
17                     actuarial equivalence adopted by the board
 
18                     upon the advice of the actuary; and
 
19           (D)  For each year of credited service not included in
 
20                subparagraph (A), (B), or (C), the average final
 
21                compensation as computed under section 88-81(d)(4)
 
22                shall be multiplied by two per cent, two and one-
 
23                half per cent, or one and one-quarter per cent, as
 

 
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 1                applicable to the credited service earned as a
 
 2                class A, B, or C member, respectively.  If the
 
 3                member has not attained age fifty-five, the
 
 4                member's retirement allowance shall be computed as
 
 5                though the member had attained age fifty-five,
 
 6                reduced in accordance with factors of actuarial
 
 7                equivalence adopted by the board upon the advice
 
 8                of the actuary.
 
 9           The total retirement allowance shall not exceed
 
10           seventy-five per cent of the member's highest average
 
11           final compensation calculated under section
 
12           88-81(d)(1), (2), (3), or (4).  If the allowance
 
13           exceeds this limit, it shall be adjusted by reducing
 
14           any annuity accrued under subparagraphs (A), (B), and
 
15           (C) and the portion of the accumulated contributions
 
16           specified in these subparagraphs in excess of the
 
17           requirements of the reduced annuity shall be returned
 
18           to the member.  If a member has service credit as an
 
19           elective officer or as a legislative officer in
 
20           addition to service credit as a judge, then the
 
21           retirement benefit calculation contained in this
 
22           paragraph shall supersede the formula contained in
 
23           paragraph (3)."
 

 
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 1      SECTION 4.  (a)  Plumbers and persons in a related series
 
 2 who are in service prior to the effective date of this Act and
 
 3 who are class C members shall have the option of remaining in
 
 4 class C or converting their membership service to class A.  An
 
 5 election form indicating the option selected shall be filed with
 
 6 the board of trustees of the employees' retirement system of
 
 7 Hawaii by June 1, 1999, and those members electing to convert to
 
 8 class A shall arrange for additional deductions or lump sum
 
 9 payments pursuant to sections 88-45 and 88-59, Hawaii Revised
 
10 Statutes, to commence by July 1, 1999.  The election filed with
 
11 the board of trustees shall be irrevocable.
 
12      (b)  All plumbers and persons in a related series, hired
 
13 after the effective date of this Act shall be designated class C
 
14 members of the employees' retirement system.
 
15      SECTION 5.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 6.  This Act shall take effect upon its approval.
 
18 
 
19                           INTRODUCED BY:  _______________________