REPORT TITLE:
ERS-Military Service Credit


DESCRIPTION:
Allows qualified contributory members of the Employees'
Retirement System who have not already purchased their military
service credit to receive a 1-1/4% per year service credit for up
to 4 years at no cost.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           39
TWENTIETH LEGISLATURE, 1999                                
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 88-132.5, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (f) to read as follows:
 
 3      "(f)  A contributory member's active military service shall
 
 4 be considered service in the member's occupation at the time that
 
 5 service is credited and [shall] may be purchased at the rate
 
 6 specified in section 88-45, and the retirement allowance provided
 
 7 by that service shall be calculated as provided in section 88-74.
 
 8      Beginning January 1, 1999, any contributory member who is
 
 9 qualified to obtain the military service credit authorized under
 
10 this section but who, as of January 1, 1999, has not exercised
 
11 the option to purchase the military service credit, shall have
 
12 the option of obtaining the same amount of military service
 
13 credit calculated at the allowance rate provided for
 
14 noncontributory members under section 88-282.  A qualified
 
15 contributory member who exercises the option to obtain military
 
16 service credit at the noncontributory rate shall not be required
 
17 to purchase those years of creditable service.  In cases where a
 
18 contributory member is eligible to receive not less than two
 
19 years of military service credit, the employees' retirement
 

 
Page 2                                                     
                                     S.B. NO.           39
                                                        
                                                        

 
 1 system shall provide the member with the option of splitting the
 
 2 military service credit between contributory and noncontributory
 
 3 allowance rates; provided that the splitting of military service
 
 4 credit shall be made in not less than one year increments.  Any
 
 5 election of an option under this paragraph shall be made within
 
 6 three months of the approval of the application for military
 
 7 service credit by the employees' retirement system and shall be
 
 8 final and irrevocable."
 
 9      SECTION 2.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 3.  This Act shall take effect upon its approval and
 
12 shall apply retroactively to January 1, 1999.
 
13 
 
14                           INTRODUCED BY:  _______________________