Report Title:
Post Retirement Allowance; Increase
Description:
Provides for automatic post retirement allowance increases based upon the number of years of credited service and the number of years in retirement.
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THE SENATE |
S.B. NO. |
2206 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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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:
SECTION 1. Section 88-90, Hawaii Revised Statutes, is amended to read as follows:
"§88-90 Post retirement allowances. (a) There shall be payable to each person receiving any pension, annuity or retirement allowance, a post retirement allowance which shall consist of an amount equivalent to one and one-half per cent of the monthly pension, annuity or retirement allowance as originally computed, approved and paid. This benefit shall be added to the monthly pension, annuity or retirement allowance on the first day of July in each year following June 30, 1961, as follows:
(1) To each person receiving a pension, annuity or retirement allowance on June 30, 1961, payment of the benefit shall commence on July 1, 1961, except that after June 30, 1963, the monthly benefits payable under this subsection shall be computed and paid on the basis of the number of years that has elapsed since the person entitled thereto first became the recipient of the pension, annuity or retirement allowance from which the benefit is derived.
(2) To each person first receiving a pension, annuity or retirement allowance after June 30, 1961, payment of the benefit shall commence on the first of July following the calendar year in which the payment of the pension, annuity or retirement allowance is effective.
(b) After June 30, 1970, the post retirement allowance shall consist of an amount equivalent to two and one-half per cent of the monthly pension, annuity or retirement allowance as originally computed and paid. This benefit shall be payable on the first day of July in each year following June 30, 1970, as follows:
(1) To each person, who on June 30, 1970, was receiving a post retirement allowance as described under subsection (a) hereof, payment of the benefit shall commence on July 1, 1970.
(2) To each person first receiving a pension, annuity or retirement allowance after December 31, 1968, payment of the benefit shall commence on the first day of July following the calendar year in which the payment of the pension, annuity or retirement allowance is effective.
(c) After June 30, 2005, the post retirement allowance shall be increased by a percentage that increases in accordance with a member's number of years of credited service and the number of years the member has been retired. After ten years in retirement, a member's post retirement allowance shall increase every five years as follows:
Years In Retirement Post Retirement Allowance
1 – 10 2.50%
11 – 15 2.75%
16 – 20 3.00%
21 – 25 3.25%
26 – 30 3.50%
31 – 35 4.00%
36 – 40 4.50%
41 – 45 5.00%
46 – 50 5.50%;
provided that the member's post retirement allowance shall not exceed the maximum post retirement allowance percentage permitted, based upon the member's number of year's of credited service, regardless of the number of years the member has been retired. The maximum annual post retirement allowance for members shall be as follows:
Years of Credited Service Maximum Post Retirement
Excluding Unused Sick Leave Allowance
1 – 10 2.50%
11 – 15 2.75%
16 – 20 3.00%
21 – 25 3.25%
26 – 30 3.50%
31 – 35 4.00%
36 – 40 4.50%
41 – 45 5.00%
46 – 50 5.50%."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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