REPORT TITLE:
ERS; Benefits


DESCRIPTION:
Deletes the differentiating date of 1/1/71 for calculating an
employee's average final compensation.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1597
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.



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

 1      SECTION 1.  Section 88-81, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  Average final compensation is [(1) for employees who
 
 4 have become members prior to January 1, 1971,] the average annual
 
 5 compensation pay or salary upon which a member has made
 
 6 contributions as required by sections 88-45 and 88-46, (A) during
 
 7 the member's five highest paid years of credited service, (B) at
 
 8 the option of the member, during the member's three highest paid
 
 9 years of credited service; provided that no payment of salary in
 
10 lieu of vacation shall be included in the computation, or (C) if
 
11 the member has less than three years of credited service, then
 
12 during the member's actual years of credited service[; or (2) for
 
13 employees who become [members] on or after January 1, 1971, the
 
14 average annual compensation pay or salary upon which a member has
 
15 made contributions as required by sections 88-45 and 88-46, (A)
 
16 during the member's three highest paid years of credited service;
 
17 provided that no payment of salary in lieu of vacation shall be
 
18 included in the computation, or (B) if the member has less than
 
19 three years of credited service, then during the member's actual
 

 
Page 2                                                     
                                     S.B. NO.           1597
                                                        
                                                        

 
 1 years of credited service]."
 
 2      SECTION 2.  Statutory material to be repealed is bracketed.
 
 3      SECTION 3.  This Act shall take effect upon its approval.
 
 4 
 
 5                              INTRODUCED BY:______________________
 
 6