HOUSE OF REPRESENTATIVES	H.B. NO.	818
TWENTY-SIXTH LEGISLATURE, 2011
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.  The purpose of this Act is to change the formula for the crediting of unused sick leave when a new public employee retires or leaves government service.  The legislature finds that this Act is necessary to reduce the public employers' contributions to the employees' retirement system.

     SECTION 2.  Section 88-63, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§88-63[]]  Credit for unused sick leave. (a)  This subsection applies to a public employee who first entered service before July 1, 2011.

     A public employee, to whom this subsection applies, who retires or leaves government service in good standing with sixty days or more of unused sick leave shall be entitled to additional service credit in the retirement system as follows:

     (1)  An employee with sixty days of unused sick leave to the employee's credit shall have the employee's years of service increased by three months for the purpose of computing the employee's retirement allowance.

     (2)  For each additional twenty days or major fraction thereof of unused sick leave in excess of sixty days that the employee has to the employee's credit the employee shall have the employee's years of service increased by one month for the purpose of computing the employee's retirement allowance.

(b)  This subsection applies to a public employee who first enters service after June 30, 2011.

A public employee, to whom this subsection applies, who retires or leaves government service in good standing with any unused sick leave shall be entitled to additional service credit in the retirement system as follows:

For each forty days or major fraction thereof of unused sick leave that the employee has to the employee's credit, the employee shall have the employee's years of service increased by one month for the purpose of computing the employee's retirement allowance.

(c)  The allowance on service retirement of section 88-74 and the service benefit limitation therein shall not apply to retirement allowances [which] that exceed such limitations by virtue of the application of [this section] subsection (a) or (b) in the computation of retirement allowances and no reduction in such retirement allowances shall be made on account of such limitations."

     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, 2011.

INTRODUCED BY:

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Report Title:

Employees' Retirement System; Unused Sick Leave Credit For New Public Employees

Description:

Provides, for a new public employee hired after 06/30/11, retirement service credit for unused sick leave that is half of the credit applicable to an existing public employee.  Does not change the unused sick leave credit provisions for an existing public employee.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.