HOUSE OF REPRESENTATIVES

H.B. NO.

2893

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STATE EMPLOYEES.

 

 

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

 


     SECTION 1.  The purpose of this Act is to address the retirement provisions for a state employee.  More specifically, this Act provides that a state employee's "compensation" shall not include overtime payments, differentials, supplementary payments, bonuses, and lump sum salary supplements.

     The legislature finds that the state government is facing a budget crisis of major proportion.  Consequently, the legislature finds that this Act is appropriate and necessary to reduce state expenditures.

     The legislature purposely has made this Act inapplicable to county employees.  During the current fiscal year, the county governments have not furloughed their employees and have continued to contribute sixty per cent towards their employees' health benefits plan costs.  These actions have led the legislature to believe that the county governments do not have budget problems of the same severity as the State.  Accordingly, the legislature finds that the county governments do not need the expenditure reductions resulting from this Act.

     The amendments made by this Act take effect on July 1, 2010 and sunset on June 30, 2015.

     SECTION 2.  Section 88-21.5, Hawaii Revised Statutes, is amended to read as follows:

     "§88-21.5  Compensation.  (a)  Unless a different meaning is plainly required by context, as used in this part, "compensation" means normal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed; overtime, differentials, and supplementary payments; bonuses and lump sum salary supplements; and elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended.  Bonuses and lump sum salary supplements shall be deemed earned when payable; provided that bonuses or lump sum salary supplements in excess of one-twelfth of compensation for the twelve months prior to the month in which the bonus or lump sum salary supplement is payable, exclusive of overtime, bonuses, and lump sum salary supplements, shall be deemed earned:

     (1)  During the period agreed-upon by the employer and employee, but in any event over a period of not less than twelve months; or

     (2)  In the absence of an agreement between the employer and the employee, over the twelve months prior to the date on which the bonus or lump sum salary supplement is payable.

     (b)  Notwithstanding subsection (a), from July 1, 2010 through June 30, 2015, a state employee's compensation shall not include overtime payments, differentials, supplementary payments, bonuses, and lump sum salary supplements.

     This subsection shall not apply to a county employee.

     This subsection shall be repealed on June 30, 2015."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Employees' Retirement System; "Compensation" Of State Employees

 

Description:

Provides that, under the employees' retirement system, a state employee's "compensation" does not include overtime payments, differentials, supplementary payments, bonuses, and lump sum salary supplements.  States expressly that the provision does not apply to a county employee.

 

 

 

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