Report Title:

ERS; Interest on Late-processed Pensions

 

Description:

Requires the Employees' Retirement System to pay interest on pensions that are not processed and issued within ninety days of a member's retirement. (SB2078 HD1)

THE SENATE

S.B. NO.

2078

TWENTY-FIRST LEGISLATURE, 2002

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to the employees' retirement system.

 

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

SECTION 1. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§88-   Interest accrual and payment on late-processed pension. Upon the actual retirement date of a member, the system shall have ninety days to process the member's initial retirement allowance in the manner specified in the member's application for retirement. If payment of a retirement allowance by the system has not commenced on or before the ninetieth day, the system shall also pay to the retirant interest on the initial payment at the rate of per cent per year calculated from the ninety-first day to the date that actual payment is made. For ordinary disability and service-connected disability retirements, the system shall have ninety days from the date that the member's retirement is approved by the board of trustees or actual retirement date specified by the member, whichever is later."

SECTION 2. New statutory material is underscored.

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