HB2727

SECTION 1. The legislature finds the Peace Corps to be an imminently important program. Created by President Kennedy in the turbulence of the 1960's, its purpose was to advance peace and friendship throughout the world. Today the organization continues to plant the seeds of understanding and assistance between peoples in a divisive world.

The legislature also finds that individuals who volunteer for service with the Peace Corps are deserving of recognition and credit for their time in service. They embody the lofty ideals of compassion and altruism, which are needed as much today as ever. Therefore, those who serve in the Peace Corps should be given service credit in the state's pension and retirement system, on par with what is given to those who serve in the military.

SECTION 2. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§88- Credit for Peace Corps Service. Whenever used in this section "Peace Corps service" means time spent as a volunteer with the Peace Corps that has been documented through a Certificate of Service issued by the Peace Corps.

(a) Any employee who becomes a member of the system in accordance with section 88-42 after July 1, 2020, and has rendered service in the Peace Corps, may be credited with membership service credit for Peace Corps service of up to four years or the actual number of years of peace corps service, whichever is less, as follows:

(1) Any member with ten years of credited service in the system may be credited with up to two years of membership service credit;

(2) Any member with twenty years of credited service in the system may be credited with up to three years of membership service credit; and

(3) Any member with twenty-five years of credited service in the system may be credited with up to four years of membership service credit.

(b) Any employee who became a member of the system in accordance with section 88-42 before June 30, 2020, and has rendered service in the Peace Corps, may be credited with membership service credit for Peace Corps service of up to four years or the actual number of years of Peace Corps service, whichever is less, as follows:

(1) Any member with eight years of credited service in the system may be credited with up to two years of membership service credit;

(2) Any member with twenty years of credited service in the system may be credited with up to three years of membership service credit; and

(3) Any member with twenty-five years of credited service in the system may be credited with up to four years of membership service credit.

(c) Any retiree receiving a pension or retirement allowance under this chapter, who retired prior to July 1, 2020, who rendered service in the Peace Corps and who had at least eight years of credited service in the system at retirement, shall be eligible for an increase in pension or retirement allowance for each year of Peace Corps service up to four years, as follows:

(1) A retiree with eight years of credited service in the system at retirement may be certified with up to two years of Peace Corps service;

(2) A retiree with twenty years of credited service in the system at retirement may be certified with up to three years of Peace Corps service; and

(3) A retiree with twenty-five years of credited service in the system at retirement may be certified with up to four years of Peace Corps service.

Upon certification by the system, each year of certified Peace Corps service shall provide an increase of $36 a month in the retiree's pension or retirement allowance effective July 1, 2020; provided that the retiree claims the Peace Corps service between July 1, 2020, and June 30, 2021. Peace Corps service certified under this subsection shall not be considered membership service credit nor shall it provide for any other benefits under this chapter.

(d) For the purposes of subsections (a) and (b), the latest membership date shall be used if there is a change in membership date due to termination and re-entry into the system.

(e) Any retiree who returns to employment, is reenrolled as a member of the system, and has at least three years of credited service in the system during the period of reemployment may be credited with membership service credit for active Peace Corps service as provided in subsection (a) or (b); provided that membership service credit shall be based upon the member's total service and the service was not previously certified in accordance with subsection (c).

(g) A member's Peace Corps service shall be considered service in the member's occupation at the time that service is credited. A class A or class B member's Peace Corps service shall be purchased at the rate specified in section 88-45 and the retirement allowance provided by that service shall be calculated as provided in section 88-74. A class C member's Peace Corps service shall be credited at no cost upon certification by the system and the retirement allowance provided by that service shall be calculated as provided in section 88-282. A class H member's Peace Corps service shall be purchased at the rate specified in section 88-325, and the retirement allowance provided by that service shall be calculated as provided in section 88-332.

(h) Any violation of this section shall result in the forfeiture of the amount of the purchase of membership service and loss of benefits and membership service credit for Peace Corps service. "

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2020.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2727
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII