REPORT TITLE: 
Pensioners' Bonus


DESCRIPTION:
Gives retirants a special cost of living bonus for each year of
the retirant's service. (SB211 HD2)


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 2
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     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 88-11, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-11  Bonus; amounts available.  Except as herein
 
 4 provided, every pension payable under the employees' retirement
 
 5 system or payable pursuant to any law of the State, or by any
 
 6 county or independent public board or commission, shall be
 
 7 increased by a bonus for each month as follows:
 
 8      (1)  Effective July 1, 1976, $77.82 per month to those
 
 9           retirants and pensioners who had, before July 1, 1966,
 
10           ten or more years of service; provided that any member
 
11           who is retired because of physical or mental disability
 
12           due to any injury or disease incurred while in the
 
13           performance of the member's duty as a public employee
 
14           shall be entitled to receive the bonus payment without
 
15           meeting the minimum service requirement;
 
16      (2)  Effective July 1, 1976, $31.12 per month additional to
 
17           the above bonus to those retirants or pensioners who
 
18           retired before July 1, 1945;
 

 
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                                     S.B. NO.           S.D. 1
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 1      (3)  Effective July 1, 1976, $31.12 per month additional to
 
 2           the above bonus or bonuses to those retirants or 
 
 3           pensioners who have had twenty-one or more years of
 
 4           service;
 
 5      (4)  Effective July 1, 1976, if the pension as increased by
 
 6           the bonus or bonuses does not equal $202.32 per month,
 
 7           the bonus shall be further increased by such sum, not
 
 8           in excess of $31.12, as will bring the total of the
 
 9           pension and bonus to $202.32 per month; provided that
 
10           where the dependents of a deceased pensioner are
 
11           receiving pension by reasons of the pensioner's death,
 
12           the total only of all amounts paid to the dependents
 
13           shall be so increased, and the increase herein shall be
 
14           shared by them in proportion to the respective amount
 
15           of pension receivable by them exclusive of this
 
16           increase;
 
17      (5)  In the case of any retirement allowance for service
 
18           commencing after June 30, 1965, pursuant to paragraph
 
19           (1) or (3) of section 88-74, the only bonus payable
 
20           shall be in the amount by which the benefit payable
 
21           under the paragraphs is less than the bonus as set
 
22           forth above; provided that in no case shall a person
 
23           who retires after June 30, 1965, receive less under the
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           service and ordinary disability retirement system
 
 2           benefits, plus the bonus payable under this section
 
 3           than the person would have received if paragraph (5)
 
 4           had not been enacted;
 
 5      (6)  Any provisions of this section to the contrary
 
 6           notwithstanding, there shall be paid to every person
 
 7           who on June 30, 1965, was receiving a retirement
 
 8           allowance from the system or other pension payable
 
 9           under or pursuant to the law of the State or by any
 
10           county or independent board or commission, a special
 
11           cost of living bonus which shall be paid in the
 
12           following manner:
 
13           (A)  On January 1, 1966, seven and one-half per cent of
 
14                the retirement allowance or pension;
 
15           (B)  On July 1, 1969, an additional ten per cent of the
 
16                retirement allowance or pension;
 
17           (C)  On July 1, 1970, an additional ten per cent of the
 
18                retirement allowance or pension;
 
19           (D)  On July 1, 1973, an additional five and one-half
 
20                per cent of the retirement allowance or pension;
 
21           (E)  On July 1, 1976, an additional eight per cent of
 
22                the retirement allowance or pension;
 

 
 
 
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                                     S.B. NO.           S.D. 1
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 1      (7)  Any provision of this section to the contrary
 
 2           notwithstanding, there shall be paid to every person
 
 3           who retired between July 1, 1965, and June 30, 1970,
 
 4           and who, on June 30, 1974, was receiving a retirement
 
 5           allowance from the system or other pension payable
 
 6           under or pursuant to the law of the State or by any
 
 7           county or independent board or commission, a special
 
 8           cost of living bonus which shall be paid in the
 
 9           following manner:
 
10           (A)  On July 1, 1974, five and one-half per cent of the
 
11                retirement allowance or pension;
 
12           (B)  On July 1, 1976, an additional eight per cent of
 
13                the retirement allowance or pension;
 
14      (8)  Any other provision to the contrary notwithstanding,
 
15           effective July 1, 1980, there shall be paid to every
 
16           person who retired prior to July 1, 1975, and who on
 
17           June 30, 1980, was receiving a retirement allowance
 
18           from the system or other pension payable under or
 
19           pursuant to the law of the State or by any county or
 
20           independent board or commission, a special cost of
 
21           living bonus which shall be paid in the following
 
22           manner:
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           (A)  $4.50 a month for each year of the retirant's or
 
 2                pensioner's credited service, if the person
 
 3                retired prior to July 1, 1965;
 
 4           (B)  $2.50 a month for each year of the retirant's or
 
 5                pensioner's credited service if the person retired
 
 6                after June 30, 1965, but prior to July 1, 1970;
 
 7                and
 
 8           (C)  $1.00 a month for each year of the retirant's or
 
 9                pensioner's credited service if the person retired
 
10                after June 30, 1970, but prior to July 1, 1975;
 
11           provided that if the retirant or pensioner had retired,
 
12           returned to service, and again retired, the person's
 
13           latest retirement date shall be considered as the
 
14           person's date of retirement; provided further that no
 
15           special cost of living bonus as provided for in this
 
16           paragraph shall be paid to those retirants or
 
17           pensioners who have eight or less years of credited
 
18           service;
 
19      (9)  Any other provision to the contrary notwithstanding,
 
20           effective July 1, 1984, there shall be paid to every
 
21           person who retired after June 30, 1970, but prior to
 
22           July 1, 1979, and who on June 30, 1984, was receiving a
 
23           retirement allowance from the system or other pension
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           payable under or pursuant to the law of the State or by
 
 2           any county or independent board or commission, a
 
 3           special cost of living bonus which shall be paid in the
 
 4           following manner:
 
 5           (A)  $.50 a month for each year of the retirant's or
 
 6                pensioner's credited service if the person retired
 
 7                after June 30, 1970, but prior to July 1, 1975;
 
 8           (B)  $1.00 a month for each year of the retirant's or
 
 9                pensioner's credited service if the person retired
 
10                after June 30, 1975, but prior to July 1, 1979;
 
11                provided that if the retirant or pensioner had
 
12                retired, returned to service, and again retired,
 
13                the person's latest retirement date shall be
 
14                considered as the person's date of retirement;
 
15           provided further that no special cost of living bonus
 
16           as provided for in this paragraph shall be paid to
 
17           those retirants or pensioners who have eight or less
 
18           years of credited service; [and]
 
19     (10)  Any other provision to the contrary notwithstanding,
 
20           effective July 1, 1988, there shall be paid to every
 
21           person who retired prior to July 1, 1982, and who on
 
22           June 30, 1988, was receiving a retirement allowance
 
23           from the system or other pension payable under or
 

 
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                                     S.B. NO.           S.D. 1
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 1           pursuant to the law of the State or by any county or
 
 2           independent board or commission, a special cost of
 
 3           living bonus which shall be paid in the following
 
 4           manner:
 
 5           (A)  $3.50 a month for each year of the retirant's or
 
 6                pensioner's credited service, if the person
 
 7                retired prior to July 1, 1965;
 
 8           (B)  $2.50 a month for each year of the retirant's or
 
 9                pensioner's credited service if the person retired
 
10                after June 30, 1965, but prior to July 1, 1970;
 
11           (C)  $1.50 a month for each year of the retirant's or
 
12                pensioner's credited service if the person retired
 
13                after June 30, 1970, but prior to July 1, 1975;
 
14                and
 
15           (D)  $1.00 a month for each year of the retirant's or
 
16                pensioner's credited service if the person retired
 
17                after June 30, 1975, but prior to July 1, 1982;
 
18           provided that if the retirant or pensioner had retired,
 
19           returned to service, and again retired, the person's
 
20           latest retirement date shall be considered as the
 
21           person's date of retirement; provided further that no
 
22           special cost of living bonus as provided for in this
 
23           paragraph shall be paid to those retirants or
 

 
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                                     S.B. NO.           S.D. 1
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 1           pensioners who have ten or less years of credited
 
 2           service[.];
 
 3      (11) Any other provision to the contrary notwithstanding,
 
 4           effective July 1, 1990, and each July 1st until June
 
 5           30, 1999, thereafter, bonuses shall be paid to
 
 6           retirants and pensioners with ten or more years of
 
 7           service or to their beneficiaries who are receiving a
 
 8           monthly benefit from the system in accordance with this
 
 9           paragraph; provided that the requirement of ten or more
 
10           years of service shall not apply in the case of a
 
11           person who retires with fewer than ten years of service
 
12           because of service connected disability; provided
 
13           further that if the retirant or pensioner is currently
 
14           receiving a larger bonus than what would be payable
 
15           under this paragraph, the retirant or pensioner shall
 
16           continue to receive the bonus amount received on June
 
17           30, 1990, until the retirant's or pensioner's bonus
 
18           calculated under this paragraph exceeds the June 30,
 
19           1990, bonus amount, at which time the difference
 
20           between the June 30, 1990, bonus and the bonus
 
21           calculated under this paragraph would be payable.  The
 
22           bonus amounts payable under this paragraph shall be
 
23           based upon years of retirement and shall be a
 
24           cumulative amount to include all previous bonuses and
 
25           shall not exceed:
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           (A)  $1.25 for each year of the retirant's or
 
 2                pensioner's credited service if the retirant or
 
 3                pensioner has been retired a minimum of five years
 
 4                by July 2nd in the year in which the bonus is
 
 5                effective;
 
 6           (B)  $2.50 for each year of the retirant's or
 
 7                pensioner's credited service if the retirant or
 
 8                pensioner has been retired a minimum of ten years
 
 9                by July 2nd in the year in which the bonus is
 
10                effective;
 
11           (C)  $4.50 for each year of the retirant's or pensioner
 
12                credited service if the retirant or pensioner has
 
13                been retired a minimum of fifteen years by July
 
14                2nd in the year in which the bonus is effective;
 
15           (D)  $6.00 for each year of the retirant's or
 
16                pensioner's credited service if the retirant or
 
17                pensioner has been retired a minimum of twenty
 
18                years by July 1st in the year in which bonus is
 
19                effective;
 
20           (E)  $8.75 for each year of the retirant's or
 
21                pensioner's credited service if the retirant or
 
22                pensioner has been retired a minimum of twenty-
 
23                five years by July 1st in the year in which the
 
24                bonus is effective;
 

 
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                                     S.B. NO.           S.D. 1
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 1           (F)  $10.50 for each year of the retirant's or
 
 2                pensioner's credited service if the retirant or
 
 3                pensioner has been retired a minimum of thirty
 
 4                years by July 1st in the year in which the bonus
 
 5                is effective; and
 
 6           (G)  Any other provision to the contrary
 
 7                notwithstanding, any retirant or pensioner with
 
 8                ten years or more years of service who on July 1st
 
 9                of the year in which the bonus is being calculated
 
10                has been retired a minimum of twenty years and
 
11                whose current bonus amount exceeds the maximum
 
12                specified in this paragraph, shall nevertheless
 
13                receive a pension increase of $1.25 for each year
 
14                of credited service.
 
15           For the purpose of this paragraph, if the retirant or
 
16           pensioner had retired, returned to service, and again
 
17           retired, the latest retirement date shall be considered
 
18           as the date of retirement;
 
19      and
 
20     (12)  Any other provision to the contrary notwithstanding,
 
21           effective July 1, 2000, and each July 1st, thereafter
 
22           until June 30, 2002, bonuses shall be paid to retirants
 
23           and pensioners with ten or more years of service or to
 

 
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                                     S.B. NO.           S.D. 1
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 1           their beneficiaries who are receiving a monthly benefit
 
 2           from the system, in accordance with this paragraph;
 
 3           provided that the requirement of ten or more years of
 
 4           service shall not apply in the case of a person who
 
 5           retires with fewer than ten years of service because of
 
 6           a service connected disability; provided further that
 
 7           if the retirant or pensioner is currently receiving a
 
 8           larger bonus than what would be payable under this
 
 9           paragraph, the retirant or pensioner shall continue to
 
10           receive the bonus amount received on June 30, 2000,
 
11           until the retirant's or pensioner's bonus calculated
 
12           under this paragraph exceeds the June 30, 2000, bonus
 
13           amount, at which time the difference between the June
 
14           30, 2000, bonus and the bonus calculated under this
 
15           paragraph would be payable.  The bonus amounts payable
 
16           under this paragraph shall be based upon years of
 
17           retirement and shall be a cumulative amount to include
 
18           all previous bonuses and shall not exceed:
 
19           (A)  $6.00 for each year of the retirant's or
 
20                pensioner's credited service if the retirant or
 
21                pensioner has been retired a minimum of twenty
 
22                years by July 1st in the year in which the bonus
 
23                is effective;
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           (B)  $8.75 for each year of the retirant's or
 
 2                pensioner's credited service if the retirant or
 
 3                pensioner has been retired a minimum of twenty-
 
 4                five years by July 1st in the year in which the
 
 5                bonus is effective;
 
 6           (C)  $10.50 for each year of the retirant's or
 
 7                pensioner's credit service if the retirant or
 
 8                pensioner has been retired a minimum of thirty
 
 9                years by July 1st in the year in which the bonus
 
10                is effective; and
 
11           (D)  Any other provision to the contrary
 
12                notwithstanding, any retirant or pensioner with
 
13                ten or more years of service who on July 1st of
 
14                the year in which the bonus is being calculated
 
15                has been retired a minimum of twenty years and
 
16                whose current bonus amount exceeds the maximum
 
17                specified in this paragraph, shall nevertheless
 
18                receive a pension increase of $1.25 for each year
 
19                of credited service.
 
20           For the purposes of this paragraph, if the retirant or
 
21           pensioner had retired, returned to service, and again
 
22           retired, the latest retirement date shall be considered
 
23           as the date of the retirement."
 

 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1      SECTION 2.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 3.  This Act shall take effect on July 1, 2000, and
 
 4 shall be repealed on June 30, 2002. 
 
 5 
 
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 7 
 
 8 
 
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