Report Title:

Employees' Retirement System; Unused Sick Leave Credit

 

Description:

Provides that an employee who first enters government service after 6/30/09 and thereafter retires or leaves service shall receive additional retirement service credit for unused sick leave only if the employee pays to the retirement system an employee's contribution for the credit.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1590

TWENTY-FIFTH LEGISLATURE, 2009

 

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:

 


     SECTION 1.  The purpose of this Act is to require that a public employee who first enters into service after June 30, 2009 and thereafter retires shall pay the employee's contribution for unused sick leave that is credited to the employee upon retirement.

     SECTION 2.  Section 88-63, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§88-63[]]  Credit for unused sick leave.  (a)  A public employee who first enters service before July 1, 2009, and thereafter retires or leaves government service in good standing with sixty days or more of unused sick leave shall be [entitled to] credited with additional service credit in the retirement system as follows:

     (1)  An employee with sixty days of unused sick leave to the employee's credit shall have the employee's years of service increased by three months for the purpose of computing the employee's retirement allowance.

     (2)  For each additional twenty days or major fraction thereof of unused sick leave in excess of sixty days that the employee has to the employee's credit the employee shall have the employee's years of service increased by one month for the purpose of computing the employee's retirement allowance.

The employee shall be credited with the additional service credit without the necessity of making an employee contribution to the system for the credit.

     (b)  A public employee who first enters government service after June 30, 2009, and thereafter retires or leaves service in good standing with sixty days or more of unused sick leave shall be credited with additional service credit for the unused sick leave in accordance with subsection (a)(1) and (2), if the employee makes a contribution to the system for the credit.

     (1)  If the employee is a class A or B member, the employee contribution shall be calculated by applying the percentage under section 88-45 to the employee's compensation for the period of the unused sick leave sought to be credited.

     (2)  If the employee is a class H member, the employee contribution shall be calculated by applying the percentage under section 88-325 to the employee's compensation for the period of the unused sick leave sought to be credited.

     A public employee who does not submit an application for the additional service credit or make the required contribution to the system by the applicable deadlines set by the board shall not be credited with the additional service credit.

     (c)  The allowance on service retirement of section 88-74 and the service benefit limitation therein shall not apply to retirement allowances which exceed such limitations by virtue of the application of this section in the computation of retirement allowances and no reduction in such retirement allowances shall be made on account of such limitations."

     SECTION 3.  Statutory material to be repealed is bracketed.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2009.

 

INTRODUCED BY:

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