HOUSE OF REPRESENTATIVES	H.B. NO.	1183
THIRTY-THIRD LEGISLATURE, 2025		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ALLOWANCE ON SERVICE RETIREMENTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Notwithstanding section 88-99, Hawaii Revised Statutes, the purpose of this Act is to include certain law enforcement administrators and employees of the Department of Law Enforcement as class A members of the pension and retirement systems and provides guidance for the computation of retirement benefits similar to police officers.

SECTION 2. Section 88-21, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:

""Deputy director of the department of law enforcement" means a person appointed by the director of law enforcement to regularly serve as a deputy director of the department of law enforcement.

"Director of law enforcement" means the person appointed by the governor to regularly serve as the director of law enforcement.

"Sheriff" means a person who serves as the administrator of the sheriff division of the department of law enforcement.

"Sheriff division investigator" means a person regularly employed by the department of law enforcement with police powers who hold the personnel class specification of investigator."

SECTION 3. Section 88-45, Hawaii Revised Statutes, is amended to read as follows:

"§88-45 Employee contributions. After June 30, 1988, each class A and class B member shall contribute seven and eight-tenths per cent of the member's compensation to the annuity savings fund; provided that after June 30, 1989, all firefighters, police officers, corrections officers, investigators of the departments of the prosecuting attorney and of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, [and] the director of law enforcement, deputy directors of the department of law enforcement, law enforcement investigations staff investigators, the sheriff, and sheriff division investigators shall contribute twelve and two-tenths per cent of their compensation to the annuity savings fund for service in that capacity; provided further that each class A and class B member who becomes a member after June 30, 2012, shall contribute nine and eight-tenths per cent of the member's compensation to the annuity savings fund; provided further that all firefighters, police officers, corrections officers, investigators of the departments of the prosecuting attorney and of the attorney general, narcotics enforcement investigators, [and] the director of law enforcement, deputy directors of the department of law enforcement, law enforcement investigations staff investigators, the sheriff, and sheriff division investigators who become members after June 30, 2012, shall contribute fourteen and two-tenths per cent of their compensation to the annuity savings fund for service in that capacity."

SECTION 4. Section 88-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be four classes of members in the system to be known as class A, class B, class C, and class H, defined as follows:

(1) Class A shall consist of:

(A) Judges, elected officials, and legislative officers;

(B) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, and law enforcement investigations staff investigators;

(C) Those members in service [prior to] before July 1, 1984, including those who are on approved leave of absence, not making the election to become a class C member as provided in part VII or to become a class H member as provided in part VIII;

(D) The following members in service [prior to] before July 1, 2006, including those who are on approved leave of absence, not making the election to become a class H member as provided in part VIII:

(i) Members whose salaries are set forth in sections 26-52 and 26-53 and their county counterparts, managing directors or an administrative assistant to the mayor, other county department heads, and agency heads appointed and subject to removal by the mayor;

(ii) First deputies appointed by the county attorney and prosecuting attorney;

(iii) The county clerk and deputy county clerk of each county;

(iv) The directors of the offices of council services of the county of Maui and the city and county of Honolulu;

(v) The administrative director of the courts;

(vi) The deputy administrative director of the courts;

(vii) The executive officer of the labor and industrial relations appeals board; and

(viii) The executive officer of the Hawaii labor relations board;

(E) All former class A retirants who return to employment after June 30, 1984, requiring the retirant's active membership; [and]

(F) All former class B retirants who return to employment requiring the retirant's active membership, except for:

(i) Former retirants who return in the positions of police officer or firefighter;

(ii) Former retirants who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and

(iii) Former retirants who were in positions to which coverage under Title II of the Social Security Act was not extended who entered membership after June 30, 1957, but before January 1, 2004; and

(G) The following members of the department of law enforcement, effective July 1, 2025:

(i) The director of law enforcement;

(ii) The deputy directors of the department of law enforcement;

(iii) The sheriff; and

(iv) Sheriff division investigators;

(2) Class B shall consist of:

(A) Police officers and firefighters, including former retirants who return to service in such capacity;

(B) All employees, including former retirants, who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and

(C) All employees, including former retirants, in positions to which coverage under Title II of the Social Security Act is not extended, who enter membership after June 30, 1957, but before January 1, 2004, not making the election to become a class H member as provided in part VIII;

(3) Except for members described in paragraphs (1) and (2), class C shall consist of all employees, not making the election to become a class H member as provided in part VIII, who:

(A) First enter service after June 30, 1984, but before July 1, 2006;

(B) Reenter service after June 30, 1984, but before July 1, 2006, without vested benefit status as provided in section 88-96(b);

(C) Make the election to become a class C member as provided in part VII; or

(D) Are former class C retirants who return to service requiring the retirant's active membership; and

(4) Except for members described in paragraphs (1) and (2), class H shall consist of all employees who:

(A) First enter service after June 30, 2006;

(B) Reenter service after June 30, 2006, without vested benefit status as provided in section 88‑96(b);

(C) Make the election to become a class H member as provided in part VIII; or

(D) Are former class H retirants who return to service requiring the retirant's active membership."

SECTION 5. Section 88-74, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) If a member, who became a member before July 1, 2012, has attained age fifty-five, the member's maximum retirement allowance shall be two per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of two per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:

(1) After June 30, 1968, if the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a firefighter, police officer, or [an] investigator of the department of the prosecuting attorney;

(2) After June 30, 1977, if the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a corrections officer;

(3) After June 16, 1981, if the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as an investigator of the department of the attorney general;

(4) After June 30, 1989, if the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a narcotics enforcement investigator;

(5) After December 31, 1993, if the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a water safety officer;

(6) After June 30, 1994, if the member has at least ten years of credited service, of which the last five or more years [prior to] before retirement are credited service as a law enforcement investigations staff investigator;

(7) After June 30, 2002, if the member:

(A) Has at least ten years of credited service as a firefighter;

(B) Is deemed permanently medically disqualified due to a [service related] service-related disability to be a firefighter by the employer's physician; and

(C) Continues employment in a class A or B position other than a firefighter; [and]

(8) After June 30, 2004, if the member:

(A) Has at least ten years of credited service as a police officer;

(B) Is deemed permanently medically disqualified due to a [service related] service-related disability to be a police officer by the employer's physician; and

(C) Continues employment in a class A or B position other than a police officer; and

(9) After June 30, 2025, if the member has at least ten years of credited service, of which the last five or more years before retirement are credited service as the director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator,

then for each year of service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, water safety officer, [or] director of law enforcement, deputy director of the department of law enforcement, law enforcement investigations staff investigator, the sheriff, or sheriff division investigator, the retirement allowance shall be two and one-half per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e)."

2. By amending subsections (e) and (f) to read:

"(e) Except as provided in subsections (b), (c), and (d), if a member, who became a member before July 1, 2012, has not attained age fifty-five at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age fifty-five, as follows:

(1) 0.4166 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus

(2) 0.3333 per cent for each month below age fifty and above age forty-four and eleven months; plus

(3) 0.2500 per cent for each month below age forty-five and above age thirty-nine and eleven months; plus

(4) 0.1666 per cent for each month below age forty;

provided that no reduction shall be made if the member has at least twenty-five years of credited service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, director of law enforcement, deputy director of the department of law enforcement, law enforcement investigations staff investigator, the sheriff, sheriff division investigator, sewer worker, or water safety officer, of which the last five or more years [prior to] before retirement is credited service in these capacities.

(f) If a member, who becomes a member after June 30, 2012, has attained age sixty, the member's maximum retirement allowance shall be one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:

(1) If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;

(2) If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a corrections officer;

(3) If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as an investigator of the department of the attorney general;

(4) If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a narcotics enforcement investigator;

(5) If the member has at least ten years of credited service, of which the last five or more years [prior to] before retirement is credited service as a law enforcement investigations staff investigator;

(6) After June 30, 2025, if the member has at least ten years of credited service, of which the last five or more years before retirement is credited service as a director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator;

[(6)] (7) If the member:

(A) Has at least ten years of credited service as a firefighter;

(B) Is deemed permanently medically disqualified due to a [service related] service-related disability to be a firefighter by the employer's physician; and

(C) Continues employment in a class A or class B position other than a firefighter; and

[(7)] (8) If the member:

(A) Has at least ten years of credited service as a police officer;

(B) Is deemed permanently medically disqualified due to a [service related] service-related disability to be a police officer by the employer's physician; and

(C) Continues employment in a class A or class B position other than a police officer,

then for each year of service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, [or] director of law enforcement, deputy director of the department of law enforcement, law enforcement investigations staff investigator, the sheriff, or sheriff division investigator, the retirement allowance shall be two and one-fourth per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i)."

3. By amending subsection (i) to read:

"(i) Except as provided in subsections (f), (g), and (h), if a member, who becomes a member after June 30, 2012, has not attained age sixty at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age sixty, as follows:

(1) 0.4166 per cent for each month below age sixty and above age fifty-four and eleven months; plus

(2) 0.3333 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus

(3) 0.2500 per cent for each month below age fifty and above age forty-four and eleven months; plus

(4) 0.1666 per cent for each month below age forty-five;

provided that no reduction shall be made if the member has attained the age of fifty-five and has at least twenty-five years of credited service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, director of law enforcement, deputy director of the department of law enforcement, law enforcement investigations staff investigator, the sheriff, sheriff division investigator, sewer worker, water safety officer, or emergency medical technician, of which the last five or more years [prior to] before retirement is credited service in these capacities."

SECTION 6. Section 88-122, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Based on regular interest and such mortality and other tables as are adopted by the board of trustees, the actuary engaged by the board, on the basis of successive annual actuarial valuations, shall determine the employer's normal cost and accrued liability contributions for each fiscal year beginning July 1 separately for the following two groups of employees:

(1) Police officers, firefighters, [and] corrections officers[; and], the director of law enforcement, deputy directors of the department of law enforcement, the sheriff, law enforcement investigations staff investigators, or sheriff division investigators; and

(2) All other employees."

2. By amending subsection (e) to read:

"(e) Commencing with fiscal year 2005-2006 and each subsequent fiscal year until fiscal year 2007-2008, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on fifteen and three-fourths per cent of the member's compensation for police officers, firefighters, and corrections officers and thirteen and three-fourths per cent of the member's compensation for all other employees. Commencing with fiscal year 2008-2009 and each subsequent fiscal year until fiscal year 2011-2012, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on nineteen and seven-tenths per cent of the member's compensation for police officers, firefighters, and corrections officers and fifteen per cent of the member's compensation for all other employees. In fiscal year 2012-2013, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on twenty-two per cent of the member's compensation for police officers, firefighters, and corrections officers and fifteen and one-half per cent of the member's compensation for all other employees. In fiscal year 2013-2014, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on twenty-three per cent of the member's compensation for police officers, firefighters, and corrections officers and sixteen per cent of the member's compensation for all other employees. In fiscal year 2014-2015, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on twenty-four per cent of the member's compensation for police officers, firefighters, and corrections officers and sixteen and one-half per cent of the member's compensation for all other employees. Commencing with fiscal year 2015-2016 until fiscal year 2016-2017, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on twenty-five per cent of the member's compensation for police officers, firefighters, and corrections officers and seventeen per cent of the member's compensation for all other employees. In fiscal year 2017-2018, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on twenty-eight per cent of the member's compensation for police officers, firefighters, and corrections officers and eighteen per cent of the member's compensation for all other employees. In fiscal year 2018-2019, the employer contributions for normal cost and accrued liability for each of the two groups in subsection (a) shall be based on thirty-one per cent of the member's compensation for police officers, firefighters, and corrections officers and nineteen per cent of the member's compensation for all other employees. In fiscal year 2019-2020, the employer contributions for normal cost and accrued liability for each of the two groups in subsection (a) shall be based on thirty-six per cent of the member's compensation for police officers, firefighters, and corrections officers and twenty-two per cent of the member's compensation for all other employees. Commencing with fiscal year 2020-2021 and each subsequent fiscal year, the employer contributions for normal cost and accrued liability for each of the two groups in subsection (a) shall be based on forty-one per cent of the member's compensation for police officers, firefighters, [and] corrections officers, the director of law enforcement, deputy directors of the department of law enforcement, the sheriff, law enforcement investigations staff investigators, and sheriff division investigators and twenty-four per cent of the member's compensation for all other employees. The contribution rates shall amortize the total unfunded accrued liability of the entire plan over a period not to exceed the maximum funding period.

The contribution rates shall be subject to adjustment:

(1) If the actual period required to amortize the unfunded accrued liability exceeds the maximum funding period;

(2) If there is no unfunded accrued liability; or

(3) Based on the actuarial investigation conducted in accordance with section 88-105."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 3000.

Report Title:

DLE; Retirement for Public Officers and Employees; Allowances; Contributions; Pension and Retirement Systems

Description:

Includes certain law enforcement administrators and employees of the Department of Law Enforcement as class A members of the pension and retirement systems and provides guidance for the computation of retirement benefits similar to police officers. Effective 07/01/3000. (HD2)

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