REPORT TITLE:
ERS


DESCRIPTION:
Provides plumbers and persons in a related series with similar
retirement benefits to that of public safety investigators.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1569
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO EMPLOYEES RETIREMENT SYSTEM.



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

 1      SECTION 1.  Section 88-47, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  There shall be three classes of members in the system
 
 4 to be known as class A, class B, and class C, defined as follows:
 
 5      (1)  Class A shall consist of members covered by section
 
 6           88-74(3), those members whose salaries are set forth in
 
 7           sections 26-52 and 26-53, and their county
 
 8           counterparts, managing directors or administrative
 
 9           assistant to the mayor, and other department heads,
 
10           including agency heads appointed by the mayor, first
 
11           deputies appointed by the county attorney and
 
12           prosecuting attorney, the county clerk and deputy
 
13           county clerk of each county, the administrative
 
14           director of the courts, the deputy administrative
 
15           director of the courts, the executive director of the
 
16           labor and industrial relations appeals board, the
 
17           executive director of the Hawaii labor relations board,
 
18           investigators of the department of the attorney
 
19           general, narcotics enforcement investigators, water
 

 
Page 2                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           safety officers not making the election under section
 
 2           88-271, public safety investigations staff
 
 3           investigators, plumbers and persons in a related
 
 4           series, and those members in service prior to July 1,
 
 5           1984, including those who are on approved leave of
 
 6           absence, who are covered by Title II of the Social
 
 7           Security Act on account of service creditable under
 
 8           this part.  This class shall consist of:
 
 9           (A)  All employees who enter membership after June 30,
 
10                1957, except employees in positions to which
 
11                coverage under Title II of the Social Security Act
 
12                is not extended;
 
13           (B)  All employees who were members on July 1, 1957,
 
14                who elected to be covered by the Social Security
 
15                Act; and
 
16           (C)  All former class A retirants who return to
 
17                employment after June 30, 1984, requiring the
 
18                retirant's active membership;
 
19      (2)  Class B shall consist of all members who are not class
 
20           A or class C members; and
 
21      (3)  Except for members described in section 88-47(a)(1),
 
22           class C shall consist of all employees in positions
 
23           covered by Title II of the Social Security Act who:
 

 
Page 3                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           (A)  First enter service after June 30, 1984;
 
 2           (B)  Reenter service after June 30, 1984, without
 
 3                vested benefit status as provided in section
 
 4                88-96(b);
 
 5           (C)  Make the election to become a class C member as
 
 6                provided in part VII; or
 
 7           (D)  Are former class C retirants who return to service
 
 8                requiring the retirant's active membership."
 
 9      SECTION 2.  Section 88-74, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "88-74  Allowance on service retirement.  Upon retirement
 
12 from service, a member shall receive a retirement allowance as
 
13 follows:
 
14      (1)  If the member has attained age fifty-five, a retirement
 
15           allowance of two per cent of the member's average final
 
16           compensation multiplied by the total number of years of
 
17           the member's credited service as a class A and B
 
18           member, excluding any credited service as an elective
 
19           officer or legislative officer, plus a retirement
 
20           allowance of one and one-fourth per cent of the
 
21           member's average final compensation multiplied by the
 
22           total number of years of prior credited service as a
 
23           class C member; provided that:
 

 
Page 4                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           (A)  After June 30, 1968, if the member has at least
 
 2                ten years of credited service of which the last
 
 3                five or more years prior to retirement is credited
 
 4                service as a firefighter, police officer, or an
 
 5                investigator of the department of the prosecuting
 
 6                attorney;
 
 7           (B)  After June 30, 1977, if the member has at least
 
 8                ten years of credited service of which the last
 
 9                five or more years prior to retirement is credited
 
10                service as a corrections officer;
 
11           (C)  After June 16, 1981, if the member has at least
 
12                ten years of credited service of which the last
 
13                five or more years prior to retirement is credited
 
14                service as an investigator of the department of
 
15                the attorney general;
 
16           (D)  After June 30, 1989, if the member has at least
 
17                ten years of credited service of which the last
 
18                five or more years prior to retirement is credited
 
19                service as a narcotics enforcement investigator; 
 
20           (E)  After December 31, 1993, if the member has at
 
21                least ten years of credited service of which the
 
22                last five or more years prior to retirement is
 
23                credited service as a water safety officer; [and]
 

 
Page 5                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           (F)  After June 30, 1994, if the member has at least
 
 2                ten years of credited service, of which the last
 
 3                five or more years prior to retirement are
 
 4                credited service as a public safety investigative
 
 5                staff investigator; and
 
 6           (G)  After June 30, 1999, if the member has at least
 
 7                ten years of credited service, of which the last
 
 8                five or more years prior to retirement are
 
 9                credited service as a plumber or person in a
 
10                related series,;
 
11           then for each year of service as a firefighter, police
 
12           officer, corrections officer, investigator of the
 
13           department of the prosecuting attorney, investigator of
 
14           the department of the attorney general, narcotics
 
15           enforcement investigator, water safety officer, [or]
 
16           public safety investigations staff investigator, or
 
17           plumber and related series, the retirement allowance
 
18           shall be two and one-half per cent of the member's
 
19           average final compensation.  The maximum retirement
 
20           allowance for those members shall not exceed eighty per
 
21           cent of the member's average final compensation.  If
 
22           the member has not attained age fifty-five, the
 
23           member's retirement allowance shall be computed as
 

 
Page 6                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           though the member had attained age fifty-five, reduced
 
 2           in accordance with factors of actuarial equivalence
 
 3           adopted by the board upon the advice of the actuary;
 
 4           provided that no reduction shall be made if the member
 
 5           has at least twenty-five years of credited service as a
 
 6           firefighter, police officer, corrections officer,
 
 7           investigator of the department of the prosecuting
 
 8           attorney, investigator of the department of the
 
 9           attorney general, narcotics enforcement investigator,
 
10           public safety investigations staff investigator,
 
11           plumber or person in a related series, sewer worker, or
 
12           water safety officer, of which the last five or more
 
13           years prior to retirement is credited service in such
 
14           capacities;
 
15      (2)  If the member has made voluntary additional
 
16           contributions for the purchase of an additional annuity
 
17           and has not applied for a refund as permitted by
 
18           section 88-72, the member may accept the refund at the
 
19           time of retirement or, in lieu thereof, receive in
 
20           addition to the retirement allowance provided in
 
21           paragraph (1), an annuity that is the actuarial
 
22           equivalent of the additional contributions with regular
 
23           interest;
 

 
Page 7                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1      (3)  If the member has credited service as a judge, the
 
 2           member's retirement allowance shall be computed on the
 
 3           following basis:
 
 4           (A)  Irrespective of age, for each year of credited
 
 5                service as a judge, three and one-half per cent of
 
 6                the member's average final compensation in
 
 7                addition to an annuity that is the actuarial
 
 8                equivalent of the member's accumulated
 
 9                contributions allocable to the period of such
 
10                service; and
 
11           (B)  For all other credited service, as provided in
 
12                paragraphs (1), (2) and (4).  No allowance shall
 
13                exceed seventy-five per cent of the member's
 
14                average final compensation.  If the allowance
 
15                exceeds this limit, it shall be adjusted by
 
16                reducing the annuity included in subparagraph (A),
 
17                and the portion of the accumulated contributions
 
18                specified in that subparagraph in excess of the
 
19                requirements of the reduced annuity shall be
 
20                returned to the member.
 
21           The allowance for judges under this paragraph, together
 
22           with the retirement allowance provided by the federal
 
23           government for similar service, shall in no case exceed
 

 
Page 8                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           seventy-five per cent of the member's average final
 
 2           compensation; or
 
 3      (4)  If the member has credited service as an elective
 
 4           officer or as a legislative officer, the member's
 
 5           retirement allowance shall be derived by adding the
 
 6           allowances computed separately under subparagraphs (A),
 
 7           (B), (C), and (D) as follows:
 
 8           (A)  Irrespective of age, for each year of credited
 
 9                service as an elective officer, three and one-half
 
10                per cent of the member's average final
 
11                compensation as computed under section
 
12                88-81(d)(1), in addition to an annuity that is the
 
13                actuarial equivalent of the member's accumulated
 
14                contributions allocable to the period of service;
 
15                and
 
16           (B)  Irrespective of age, for each year of credited
 
17                service as a legislative officer, three and one-
 
18                half per cent of the member's average final
 
19                compensation as computed under section
 
20                88-81(d)(2), in addition to an annuity that is the
 
21                actuarial equivalent of the member's accumulated
 
22                contributions allocable to the period of service;
 
23           (C)  Irrespective of age, for each year of credited
 

 
Page 9                                                     
                                     S.B. NO.           1569
                                                        
                                                        

 
 1                service as a judge, three and one-half per cent of
 
 2                the member's average final compensation as
 
 3                computed under section 88-81(d)(3), in addition to
 
 4                an annuity that is the actuarial equivalent of the
 
 5                member's accumulated contributions allocable to
 
 6                the period of service; and
 
 7           (D)  For each year of credited service not included in
 
 8                subparagraph (A), (B), or (C), the average final
 
 9                compensation as computed under section 88-81(d)(4)
 
10                shall be multiplied by two per cent, two and one-
 
11                half per cent, or one and one-quarter per cent, as
 
12                applicable to the credited service earned as a
 
13                class A, B, or C member, respectively.
 
14           The total retirement allowance shall not exceed
 
15           seventy-five per cent of the member's highest average
 
16           final compensation calculated under section
 
17           88-81(d)(1), (2), (3), or (4).  If the allowance
 
18           exceeds this limit, it shall be adjusted by reducing
 
19           any annuity accrued under subparagraphs (A), (B), and
 
20           (C) and the portion of the accumulated contributions
 
21           specified in these subparagraphs in excess of the
 
22           requirements of the reduced annuity shall be returned
 
23           to the member.  If a member has service credit as an
 

 
Page 10                                                    
                                     S.B. NO.           1569
                                                        
                                                        

 
 1           elective officer or as a legislative officer in
 
 2           addition to service credit as a judge, then the
 
 3           retirement benefit calculation contained in this
 
 4           paragraph shall supersede the formula contained in
 
 5           paragraph (3)."
 
 6      SECTION 3.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 4.  This Act shall take effect upon its approval.
 
 9 
 
10                           INTRODUCED BY:  _______________________