HOUSE OF REPRESENTATIVES

H.B. NO.

1042

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE DEFINITION OF COMPENSATION FOR PURPOSES OF THE EMPLOYEES' RETIREMENT SYSTEM.

 

 

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

 


     SECTION 1.  Section 88‑21.5, Hawaii Revised Statutes, is amended to read as follows:

     "§88‑21.5  Employee contributions.  [Unless] (a) For service before July 1, 2011, unless a different meaning is plainly required by context, as used in this part, "compensation" means normal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed; overtime, differentials, and supplementary payments; bonuses and lump sum salary supplements; and elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended.  Bonuses and lump sum salary supplements shall be deemed earned when payable; provided that bonuses or lump sum salary supplements in excess of one‑twelfth of compensation for the twelve months prior to the month in which the bonus or lump sum salary supplement is payable, exclusive of overtime, bonuses, and lump sum salary supplements, shall be deemed earned:

     (1)  During the period agreed‑upon by the employer and employee, but in any event over a period of not less than twelve months; or

     (2)  In the absence of an agreement between the employer and the employee, over the twelve months prior to the date on which the bonus or lump sum salary supplement is payable.

     (b)  For service after June 30, 2011, unless a different meaning is plainly required by context, as used in this part, "compensation" means normal periodic payments of money for services performed, the right to which accrues on an hourly, daily, monthly, or annual basis; shortage differentials; and elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended.  "Compensation" does not include any other additional or extra payments to an employee or officer, including, but not limited to, overtime, bonuses, lump sum salary supplements, allowances, or differentials, including, but not limited to, differentials for stand‑by duty, temporary unusual work hazards, compression differentials, or temporary differentials."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2011; provided that with respect to individuals who became members of the employees' retirement system of the State of Hawaii before July 1, 2011, the member's benefits accrued up to June 30, 2011, shall not be diminished or impaired.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

Employees' Retirement System; Calculation of Retirement Benefits

 

Description:

Amends the definition of "compensation" for the purpose of calculating retirement benefits.

 

 

 

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