Report Title:
ERS; Compensation
Description:
Excludes certain forms of pay in computing compensation for retirement purposes.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1737 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the public employees' retirement system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 88-21.5, Hawaii Revised Statutes, is amended to read as follows:
"§88-21.5 Compensation. [Unless]
(a) Except as otherwise provided under subsection (b) and unless a
different meaning is plainly required by context, as used in this part,
"compensation" means normal periodic payments of money for service
the right to which accrues on a regular basis in proportion to the service performed;
overtime, differentials, and supplementary payments; bonuses and lump sum
salary supplements; and elective salary reduction contributions under sections
125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended.
Bonuses and lump sum salary supplements shall be deemed earned when payable;
provided that bonuses or lump sum salary supplements in excess of one-twelfth
of compensation for the twelve months prior to the month in which the bonus or
lump sum salary supplement is payable, exclusive of overtime, bonuses, and lump
sum salary supplements, shall be deemed earned:
(1) During the period agreed-upon by the employer and employee, but in any event over a period of not less than twelve months; or
(2) In the absence of an agreement between the employer and the employee, over the twelve months prior to the date on which the bonus or lump sum salary supplement is payable.
(b) From July 1, 2009 through June 30, 2015, an employee's "compensation" shall not include overtime payments, differentials, supplementary payments, bonuses, and lump sum salary supplements."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
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 Statutory material to be repealed is bracketed and stricken.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 This Act shall take effect on July 1, 2009 and shall be repealed on June 30, 2015; provided that section 88-21.5, Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2009.
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INTRODUCED BY: |
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