Report Title:
ERS; Ordinary Disability Retirement
Description:
Enables a member of the ERS who suffers from an incurable debilitating disease to qualify for ordinary disability retirement and to continue working until they are unable to continue working. (SD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2678 |
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TWENTY-THIRD LEGISLATURE, 2006 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 1 |
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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:
SECTION 1. Section 88-75, Hawaii Revised Statutes, is amended to read as follows:
"§88-75 Ordinary disability retirement. (a) Upon application of a member in service or on leave without pay, or the person appointed by the family court as guardian of an incapacitated member, any member who has ten or more years of credited service shall be retired by the board [of trustees] on an ordinary disability retirement allowance if the medical board, after a medical examination of the member, certifies that:
(1) The member is mentally or physically incapacitated for the further performance of duty at the time of application;
(2) The incapacity is likely to be permanent; and
(3) The member should be retired.
(b) Notwithstanding the requirement of subsection (a)(1), if a member applying for ordinary disability retirement suffers from the symptoms of an incurable debilitating disease that has not progressed to the extent that the member's physical or mental condition has deteriorated so as to require the member to immediately retire, the medical board shall render a decision on the member's eligibility for retirement within thirty days of the medical board's receipt of a written statement, from the member's primary care physician or a physician who specializes in the diagnosis of the incurable debilitating disease, certifying that the member suffers from the symptoms of an incurable debilitating disease. Within thirty days of the medical board's decision on whether a member's medical condition qualifies as an incurable debilitating disease, the system shall render a decision on the member's retirement application and notify the member of the system's decision.
(c) No time limit for retirement from the system shall be imposed upon a member who qualifies for ordinary disability retirement under subsection (b), and the member may continue in the member's public sector employment until such time as the member elects to terminate service and retire.
For the purposes of this section, "incurable debilitating disease" means a disease that:
(1) Is contracted by a member and the diagnosis of the disease is certified in writing by the member's primary care physician or a physician who specializes in the diagnosis of the disease;
(2) Causes the member to lose the ability to adequately perform the duties described in the member's job description; and
(3) Results in either the eventual death or total incapacity of the member.
Nothing in this subsection shall be construed to absolve a member from complying with the retirement application process requirements of this section.
(d) Upon approval by the board, the member shall be eligible to receive an ordinary disability retirement benefit no earlier than thirty days from the date the application was filed or the date the member terminated service, whichever is later. Retirement shall become effective on the first day of a month, except for the month of December when retirement on the first or last day of the month shall be allowed."
SECTION 2. Section 88-284, Hawaii Revised Statutes, is amended to read as follows:
"§88-284 Ordinary disability retirement. (a) Upon application of a member in service or on leave without pay, or the person appointed by the family court as guardian of an incapacitated member, any member who has ten or more years of credited service shall be retired by the board [of trustees] on an ordinary disability retirement allowance if the medical board, after a medical examination of the member, certifies that:
(1) The member is mentally or physically incapacitated for the further performance of duty at the time of application;
(2) The incapacity is likely to be permanent; and
(3) The member should be retired.
(b) Notwithstanding the requirement of subsection (a)(1), if a member applying for ordinary disability retirement suffers from an incurable debilitating disease that has not progressed to the extent that the member's physical or mental condition has deteriorated so as to require the member to immediately retire, the medical board shall render a decision on the member's eligibility for retirement within thirty days of the medical board's receipt of a written statement, from the member's primary care physician or a physician who specializes in the diagnosis of the incurable debilitating disease, certifying that the member suffers from an incurable debilitating disease. Within thirty days of the medical board's decision on whether a member's medical condition qualifies as an incurable debilitating disease, the system shall render a decision on the member's retirement application and notify the member of the system's decision.
(c) No time limit for retirement from the system shall be imposed upon a member who qualifies for ordinary disability retirement under subsection (b), and the member may continue in the member's public sector employment until such time as the member elects to terminate service and retire.
For the purposes of this section, "incurable debilitating disease" means a disease that:
(1) Is contracted by a member and the diagnosis of the disease is certified in writing by the member's primary care physician or a physician who specializes in the diagnosis of the disease;
(2) Causes the member to lose the ability to adequately perform the duties described in the member's job description; and
(3) Results in either the eventual death or total incapacity of the member.
Nothing in this subsection shall be construed to absolve a member from complying with the retirement application process requirements of this section.
[(b)] (d) Upon approval by the board, the member shall receive an ordinary disability retirement benefit no earlier than thirty days from the date the application was filed or the date the member terminated service, whichever is later. Retirement shall become effective on the first day of a month, except for the month of December when retirement on the first or last day of the month shall be allowed.
[(c)] (e) A member who is determined to be permanently incapacitated for the further performance of duty pursuant to subsection (a) and eligible to receive an ordinary disability retirement allowance shall receive a maximum retirement allowance of one and one-fourth per cent of the average final compensation multiplied by the number of years of credited service unreduced for age."
SECTION 3. Section 88-334, Hawaii Revised Statutes, is amended to read as follows:
"[[]§88-334[]] Ordinary disability retirement. (a) Upon application of a class H member in service or on leave without pay, or the person appointed by the family court as guardian of an incapacitated member, any member who has ten or more years of credited service shall be retired by the board on an ordinary disability retirement allowance if the medical board, after a medical examination of the member, certifies that:
(1) The member is mentally or physically incapacitated for the further performance of duty at the time of application;
(2) The incapacity is likely to be permanent; and
(3) The member should be retired.
(b) Notwithstanding the requirement of subsection (a)(1), if a member applying for ordinary disability retirement suffers from an incurable debilitating disease that has not progressed to the extent that the member's physical or mental condition has deteriorated so as to require the member to immediately retire, the medical board shall render a decision on the member's eligibility for retirement within thirty days of the medical board's receipt of a written statement, from the member's primary care physician or a physician who specializes in the diagnosis of the incurable debilitating disease, certifying that the member suffers from an incurable debilitating disease. Within thirty days of the medical board's decision on whether a member's medical condition qualifies as an incurable debilitating disease, the system shall render a decision on the member's retirement application and notify the member of the system's decision.
(c) No time limit for retirement from the system shall be imposed upon a member who qualifies for ordinary disability retirement under subsection (b), and the member may continue in the member's public sector employment until such time as the member elects to terminate service and retire.
For the purposes of this section, "incurable debilitating disease" means a disease that:
(1) Is contracted by a member and the diagnosis of the disease is certified in writing by the member's primary care physician or a physician who specializes in the diagnosis of the disease;
(2) Causes the member to lose the ability to adequately perform the duties described in the member's job description; and
(3) Results in either the eventual death or total incapacity of the member.
Nothing in this subsection shall be construed to absolve a member from complying with the retirement application process requirements of this section.
[(b)] (d) Upon approval by the board, the member shall receive an ordinary disability retirement benefit no earlier than thirty days from the date the application was filed or the date the member terminated service, whichever is later. Retirement shall become effective on the first day of a month, except for the month of December when retirement on the first or last day of the month shall be allowed."
SECTION 4. This Act shall apply to any application for ordinary disability retirement filed after its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.