Report Title:

Public Employee; Early Retirement

 

Description:

Allows a public employee to retire early without penalty under certain circumstances.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

529

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO PUBLIC EMPLOYMENT.

 

 

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

 


     SECTION 1.  The purpose of this Act is to allow a public employee to retire early without penalty under certain circumstances.

     SECTION 2.  Section 88-74, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except as provided in subsection (a), if a member has not attained age fifty-five at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age fifty-five, as follows:

     (1)  0.4166 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus

     (2)  0.3333 per cent for each month below age fifty and above age forty-four and eleven months; plus

     (3)  0.2500 per cent for each month below age forty-five and above age thirty-nine and eleven months; plus

     (4)  0.1666 per cent for each month below age forty;

provided that no reduction shall be made if [the]:

     (1)  The member has at least twenty-five years of credited service as a firefighter, police officer, corrections officer, investigator of the department of the prosecuting attorney, investigator of the department of the attorney general, narcotics enforcement investigator, public safety investigations staff investigator, sewer worker, or water safety officer, of which the last five or more years prior to retirement is credited service in these capacities[.]; or

     (2)  The member has:

         (A)  At least twenty-five years of credited service; and

         (B)  Retired from a civil service position:

              (i)  The salary for which was paid entirely from the general fund on the day before the date of retirement; and

             (ii)  The appointing authority for which agrees in writing to leave the position vacant until June 30, 2011, or fill the position with an employee whose salary is not more than seventy-five per cent of the retiring member's last salary."

     SECTION 3.  Section 88-281, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:"

     "(c)  [A] Except as otherwise provided under section 88-282(2), a member who has twenty years of credited service and has attained age fifty-five shall be eligible to receive an early retirement allowance reduced for age after the member has terminated service."

     SECTION 4.  Section 282-282, Hawaii Revised Statutes, is amended to read as follows:

     "§88-282  Service retirement allowance.  Upon retirement from service, a member shall receive a retirement allowance as follows:

     (1)  If the member has met the requirements in section 88-281(a), (b), (d), or (e), a maximum retirement allowance of one and one-fourth per cent of the average final compensation multiplied by the number of years of credited service; or

     (2)  If the member has met the requirements in section 88-281(c), an early retirement allowance equal to the maximum retirement allowance reduced by one-half per cent for each month the member is less than age sixty-two at retirement[.]; except that the early retirement allowance shall not be reduced for a member who has:

         (A)  At least twenty years of credited service; and

         (B)  Retired from a civil service position:

              (i)  The salary for which was paid entirely from the general fund on the day before the date of retirement; and

             (ii)  The appointing authority for which agrees in writing to leave the position vacant until June 30, 2011, or fill the position with an employee whose salary is not more than seventy-five per cent of the retiring member's last salary."

     SECTION 5.  Section 88-331, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:"

     "(c)  [A] Except as otherwise provided under section 88-332(2), a class H member who has twenty years of credited service and has attained age fifty-five shall be eligible to receive an early retirement allowance reduced for age after the member has terminated service."

     SECTION 6.  Section 88-332, Hawaii Revised Statutes, is amended to read as follows:

     "§88-332  Service retirement allowance.  Upon retirement from service, a class H member shall receive a maximum retirement allowance as follows:

     (1)  If the member has met the requirements in section 88-331(a), (b), or (d), a maximum retirement allowance of two per cent of the average final compensation multiplied by the number of years of class H credited service, plus a retirement allowance at the rate of one and one-fourth per cent of the member's average final compensation multiplied by the number of years of class C credited service; or

     (2)  If the member has met the requirements in section 88-331(c), an early retirement allowance equal to the maximum retirement allowance calculated as provided in paragraph (1), reduced by 0.4166 per cent for each month the member is less than age sixty-two at retirement[.]; except that the allowance shall not be reduced if the member has:

         (A)  At least twenty years of credited service; and

         (B)  Retired from a civil service position:

              (i)  The salary for which was paid entirely from the general fund on the day before the date of retirement; and

             (ii)  The appointing authority for which agrees in writing to leave the position vacant until June 30, 2011, or fill the position with an employee whose salary is not more than seventy-five per cent of the retiring member's last salary."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2009.

 

INTRODUCED BY:

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