Report Title:

ERS; Post Retirement Allowance; Increase; Appropriation

Description:

Increases the post retirement allowance to three per cent beginning ten years after the date of retirement.  Appropriates funds for the post retirement allowance increase.

THE SENATE	S.B. NO.	2566
TWENTY-FOURTH LEGISLATURE, 2008
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:

     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, 2008, the post retirement allowance shall consist of an amount equivalent to three per cent of the monthly pension, annuity or retirement allowance as originally computed and paid for any retirant who has been retired for at least ten years."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2008-2009 to provide for post retirement allowance increases provided pursuant to this Act.

     The sum appropriated shall be expended by the employees' retirement system for the purposes of this Act.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2008.

INTRODUCED BY:

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