Report Title:

Employees' Retirement System; Additional Service Credit for Unused Vacation Leave

 

Description:

Allows an active member of the employees' retirement system to receive additional service credit for unused vacation leave upon complying with certain conditions.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1203

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO PUBLIC EMPLOYEES.

 

 

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

 


     SECTION 1.  The purpose of this Act is to allow active members of the employees' retirement system to receive additional retirement service credit for unused vacation leave upon complying with certain conditions.

     SECTION 2.  Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart B, to be appropriately designated and to read as follows:

     "§88-    Credit for unused vacation leave.  (a)  Except as provided under subsection (f), an active member with unused vacation leave on December 31 of a year shall be entitled to additional service credit for the unused vacation leave if the active member contributes to the system:

     (1)  An amount equal to the sum of the employer's contribution and, if applicable, the active member's employee contribution for service credit for the period of the unused vacation leave, calculated upon the active member's compensation on the relevant December 31; plus

     (2)  An additional four per cent of the active member's compensation on the relevant December 31.

     (b)  The board shall establish procedures, including deadlines, for the application of an active member for the additional service credit and payment of the active member's contribution set by subsection (a).  The board shall not be required to establish the procedures by rulemaking under chapter 91.

     (c)  An active member shall not be required to apply for additional service credit for all of the active member's unused vacation leave on the relevant December 31.  The active member may apply for such credit for a portion of the unused vacation leave.

     (d)  All of the active member's contribution for the unused vacation leave credit shall be deemed "voluntary" for the purpose of this chapter.

     (e)  The portion of the sum contributed by an active member under subsection (a)(1) that equals the active member's employee contribution shall be deposited into the annuity savings fund.

     The portion of the sum contributed by an active member under subsection (a)(1) that equals the employer's contribution shall be deposited into the pension accumulation fund and deemed an "employer's contribution" from the active member's employing agency for the purpose of this chapter.

     The contribution of an active member under subsection (a)(2) shall be deposited into the pension accumulation fund and deemed an "employer's contribution" from the active member's employing agency for the purpose of this chapter.  This contribution shall be used to amortize the unfunded accrued liability of the system.

     (f)  An active member shall not be entitled to any additional service credit for unused vacation leave transferred to the active member under a leave sharing program."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall be repealed on December 31, 2011.

 

INTRODUCED BY:

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