HB2678 SD2

Report Title:

ERS; Ordinary Disability Retirement

Description:

Extends from 90 to 150 days the retirement deadline for a member of the ERS who qualifies for ordinary disability to continue working. Allows the member to file up to 3 ordinary disability retirement applications. (SD2)

HOUSE OF REPRESENTATIVES	H.B. NO.	2678
TWENTY-THIRD LEGISLATURE, 2006		H.D. 2
STATE OF HAWAII		S.D. 2

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) 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 be no later than one hundred fifty days after the date of the notice informing the member of the board's approval of the member's application for ordinary disability retirement. If the member fails to retire within one hundred fifty days after the mailing of the notice of the board's approval of the member's application for ordinary disability retirement, the application shall be deemed canceled. 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) Notwithstanding subsection (b), if a member, who has previously submitted two separate applications for ordinary disability retirement that are canceled by the member or that are deemed canceled pursuant to subsection (b) because the member has failed to retire within one hundred fifty days after the mailing of the notice of the board's approval of the member's application, submits an application for ordinary disability retirement:

(1) The member may not cancel the application; and

(2) If the application is approved by the board, the member shall be retired no later than one hundred fifty days after the mailing of the notice of the board's approval of the application; provided that any application submitted by a member pursuant to this section that is disapproved by the board shall not be included in the calculation of canceled applications."

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) 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 be no later than one hundred fifty days after the date of the notice informing the member of the board's approval of the member's application for ordinary disability retirement. If the member fails to retire within one hundred fifty days after the mailing of the notice of the board's approval of the member's application for ordinary disability retirement, the application shall be deemed canceled. 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.

(1) The member may not cancel the application; and

[~~(c)~~] (d) 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.

(1) The member may not cancel the application; and

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.