HOUSE OF REPRESENTATIVES

H.B. NO.

1448

TWENTY-SIXTH LEGISLATURE, 2011

 

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.  Special retirement incentive benefit.  (a)  Beginning on July 1, 2012, and ending on June 30, 2015, any employee who meets the criteria under subsection (c) shall qualify for the special retirement benefit provided by this section.  To receive the special retirement incentive benefit offered under this section, the employee shall comply with the application and time frame requirements specified in subsection (b).

     (b)  Any employee who elects to retire and receive the special retirement incentive benefit under this section shall notify the employee's employing department and file a formal application for retirement with the employees' retirement system not less than thirty days nor more than ninety days prior to the date of retirement.

     (c)  Notwithstanding the age and length of service requirements of sections 88-73, 88-281, and 88-331, Hawaii Revised Statutes, an employee member shall qualify for the special retirement incentive benefit if, on the employee's retirement date, the employee has at least ten years of credited service as a contributory class A or B member, as a noncontributory class C member, or as a class H member, and is at least fifty-five years of age.

     (d)  Any employee who exercises the option of the special retirement incentive benefit under this section because the employee does not qualify with respect to the age and length of service requirements under sections 88-73, 88-281, and 88-331, Hawaii Revised Statutes, to receive a retirement benefit without penalty, shall not have the retirement benefit reduced in accordance with the actuarial formula normally used by the employees' retirement system for the calculation of early retirement benefits.

     (e)  The head of each affected department shall transmit a list of employees who elected and received the special retirement incentive benefit to the board of trustees of the employees' retirement system not less than thirty days but not more than ninety days prior to the employee's retirement date.

     (f)  The board of trustees of the employees' retirement system shall make payments with respect to all eligible employees who retire pursuant to this section.  The board shall determine the portion of the additional actuarial present value of benefits to be charged to the State based on retirements authorized under this section.  If necessary, the State shall make additional payments to the employee's retirement system in the amounts required to amortize the additional actuarial present value of benefits over a period of five years.  The unfunded actuarial present values of benefits payable under this section are part of the unfunded accrued liability of the employees' retirement system under sections 88-122 and 88-123, Hawaii Revised Statutes.

     SECTION 2.  No employee who has received any benefit under this Act shall be reemployed by the State in any capacity unless all benefits derived from the specific retirement incentive benefit under section 1, as determined by the board of trustees of the employees' retirement system, are forfeited prior to the commencement of reemployment.

     SECTION 3.  After payments of all costs associated with the special retirement incentive benefits, the remaining payroll balances shall not be expended for any purpose and shall be lapsed into the appropriate fund from which the retiring employee's salary or wages is paid.

     SECTION 4.  The head of each affected state department who provided benefits under this Act shall transmit a list that includes each employee who received benefits under this Act and the benefit received by the employee to the directors of finance and human resources development.

     SECTION 5.  The departments of human resources development and budget and finance shall develop and administer guidelines and deadlines for participating agencies to implement the special retirement incentive benefits under this Act.

     SECTION 6.  This Act shall take effect on July 1, 2011, and shall be repealed on June 30, 2015.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

ERS; Early Retirement

 

Description:

Temporarily allows members of the ERS with 10 or more years of service and are at least 55 years of age to retire without penalty.

 

 

 

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