Hawaii 2024 Regular Session

Hawaii House Bill HB1392 Compare Versions

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11 HOUSE OF REPRESENTATIVES H.B. NO. 1392 THIRTY-SECOND LEGISLATURE, 2023 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:
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3131 A BILL FOR AN ACT
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3737 relating to THE employees' retirement system.
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4343 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. Section 88-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) There shall be four classes of members in the system to be known as class A, class B, class C, and class H, defined as follows: (1) Class A shall consist of: (A) Judges, elected officials, and legislative officers[;] in service prior to July 1, 2023; (B) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, and public safety investigations staff investigators; (C) Those members in service prior to July 1, 1984, including those who are on approved leave of absence, not making the election to become a class C member as provided in part VII or to become a class H member as provided in part VIII; (D) The following members in service prior to July 1, 2006, including those who are on approved leave of absence, not making the election to become a class H member as provided in part VIII: (i) Members whose salaries are set forth in sections 26-52 and 26-53 and their county counterparts, managing directors or an administrative assistant to the mayor, other county department heads, and agency heads appointed and subject to removal by the mayor; (ii) First deputies appointed by the county attorney and prosecuting attorney; (iii) The county clerk and deputy county clerk of each county; (iv) The directors of the offices of council services of the county of Maui and the city and county of Honolulu; (v) The administrative director of the courts; (vi) The deputy administrative director of the courts; (vii) The executive officer of the labor and industrial relations appeals board; and (viii) The executive officer of the Hawaii labor relations board; (E) All former class A retirants who return to employment after June 30, 1984, requiring the retirant's active membership; and (F) All former class B retirants who return to employment requiring the retirant's active membership, except for: (i) Former retirants who return in the positions of police officer or firefighter; (ii) Former retirants who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and (iii) Former retirants who were in positions to which coverage under Title II of the Social Security Act was not extended who entered membership after June 30, 1957, but before January 1, 2004; (2) Class B shall consist of: (A) Police officers and firefighters, including former retirants who return to service in such capacity; (B) All employees, including former retirants, who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and (C) All employees, including former retirants, in positions to which coverage under Title II of the Social Security Act is not extended, who enter membership after June 30, 1957, but before January 1, 2004, not making the election to become a class H member as provided in part VIII; (3) Except for members described in paragraphs (1) and (2), class C shall consist of all employees, not making the election to become a class H member as provided in part VIII, who: (A) First enter service after June 30, 1984, but before July 1, 2006; (B) Reenter service after June 30, 1984, but before July 1, 2006, without vested benefit status as provided in section 88-96(b); (C) Make the election to become a class C member as provided in part VII; or (D) Are former class C retirants who return to service requiring the retirant's active membership; and (4) Except for members described in paragraphs (1) and (2), class H shall consist of all employees who: (A) First enter service after June 30, 2006; (B) Reenter service after June 30, 2006, without vested benefit status as provided in section 88‑96(b); (C) Make the election to become a class H member as provided in part VIII; or (D) Are former class H retirants who return to service requiring the retirant's active membership." SECTION 2. Section 88-73, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) Any member who: (1) Became a member before July 1, 2012, and has at least five years of credited service and has attained age fifty-five; (2) Became a member before July 1, 2012, and has at least twenty-five years of credited service; (3) Has at least ten years of credited service, which includes service as a judge before July 1, 1999[,]; an elective officer[,] before July 1, 2023; or a legislative officer[;] before July 1, 2023; (4) Becomes a member after June 30, 2012, and has at least ten years of credited service and has attained age sixty; or (5) Becomes a member after June 30, 2012, and has at least twenty-five years of credited service and has attained age fifty-five, shall become eligible to receive a retirement allowance after the member has terminated service." 2. By amending subsection (d) to read: "(d) Any member of the legislature who first earned credited service as a member of the legislature before July 1, 2023, and who attains age sixty-five may retire and receive a service retirement allowance although the member continues to fill the elective position." SECTION 3. Section 88-74, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (b) through (d) to read: "(b) If a member, who became a member before July 1, 2012, has attained age fifty-five, the member's maximum retirement allowance shall be two per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer[,] who first earned credited service as a judge, elective officer, or legislative officer before July 1, 2023, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of two per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that: (1) After June 30, 1968, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney; (2) After June 30, 1977, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer; (3) After June 16, 1981, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general; (4) After June 30, 1989, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator; (5) After December 31, 1993, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a water safety officer; (6) After June 30, 1994, if the member has at least ten years of credited service, of which the last five or more years prior to retirement are credited service as a public safety investigations staff investigator; (7) After June 30, 2002, if the member: (A) Has at least ten years of credited service as a firefighter; (B) Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and (C) Continues employment in a class A or B position other than a firefighter; and (8) After June 30, 2004, if the member: (A) Has at least ten years of credited service as a police officer; (B) Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and (C) Continues employment in a class A or B position other than a police officer; then for each year of 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, water safety officer, or public safety investigations staff investigator, the retirement allowance shall be two and one-half per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e). (c) If a member, who became a member prior to July 1, 2012, [has] and who first earned credited service as a judge[,] before July 1, 2023, the member's retirement allowance shall be computed on the following basis: (1) For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one‑half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (2) For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e); (3) For a member who first earned credited service as a judge after June 30, 2012, but before July 1, 2023, for each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); (4) For a judge with other credited service, as provided in subsection (b). If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty‑five, reduced for age as provided in subsection (e); or (5) For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (d). No allowance shall exceed seventy-five per cent of the member's average final compensation. If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in paragraphs (1), (2), and (3) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation. (d) If a member, who became a member before July 1, 2012, [has] and who first earned credited service as an elective officer or as a legislative officer[,] before July 1, 2023, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), (4), (5), and (6) as follows: (1) For a member who has credited service as an elective officer before July 1, 2012, irrespective of age, for each year of credited service as an elective officer, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (2) For a member, who first earned credited service as an elective officer after June 30, 2012, but before July 1, 2023, irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (3) For a member who has credited service as a legislative officer before July 1, 2012, irrespective of age, for each year of credited service as a legislative officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (4) For a member who first earned credited service as a legislative officer after June 30, 2012, but before July 1, 2023, irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (5) If the member has credited service as a judge, the member's retirement allowance shall be computed on the following basis: (A) For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (B) For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, and has attained the age of fifty-five, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e); and (C) For a member who first earned credited service as a judge after June 30, 2012, but before July 1, 2023, and has attained the age of sixty, for each year of credited service as a judge, three per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and (6) For each year of credited service not included in paragraph (1), (2), (3), (4), or (5), the average final compensation as computed under section 88‑81(e)(4) shall be multiplied by two per cent for credited service earned as a class A or class H member, two and one-half per cent for credited service earned as a class B member, and one and one‑quarter per cent for credited service earned as a class C member. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty‑five, reduced for age as provided in subsection (e). The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(e)(1), (2), (3), or (4). If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), (3), (4), and (5) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (c)." 2. By amending subsections (f) through (h) to read: "(f) If a member, who becomes a member after June 30, 2012, has attained age sixty, the member's maximum retirement allowance shall be one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer[,] who first earned credited service as a judge, elective officer, or legislative officer before July 1, 2023, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that: (1) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney; (2) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer; (3) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general; (4) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator; (5) If the member has at least ten years of credited service, of which the last five or more years prior to retirement is credited service as a public safety investigations staff investigator; (6) If the member: (A) Has at least ten years of credited service as a firefighter; (B) Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and (C) Continues employment in a class A or class B position other than a firefighter; and (7) If the member: (A) Has at least ten years of credited service as a police officer; (B) Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and (C) Continues employment in a class A or class B position other than a police officer, then for each year of 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, or public safety investigations staff investigator, the retirement allowance shall be two and one-fourth per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i). (g) If a member, who becomes a member after June 30, 2012, [has] and who first earned credited service as a judge[,] before July 1, 2023, the member's retirement allowance shall be computed on the following basis: (1) For each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); (2) For a judge with other credited service, as provided in subsection (f). If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and (3) For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (h). No allowance shall exceed seventy-five per cent of the member's average final compensation. If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraph (1) and the portion of the accumulated contributions specified in paragraph (1) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation. (h) If a member, who becomes a member after June 30, 2012, [has] and who first earned credited service as an elective officer or as a legislative officer[,] before July 1, 2023, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), and (4) as follows: (1) Irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(f)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (2) Irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(f)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service; (3) For each year of credited service as a judge[,] and the member first earned credited service as a judge before July 1, 2023, three per cent of the member's average final compensation as computed under section 88‑81(f)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and (4) For each year of credited service not included in paragraph (1), (2), or (3), the average final compensation as computed under section 88-81(f)(4) shall be multiplied by one and three-fourth per cent for credited service earned as a class A or class H member, two and one-fourth per cent for credited service earned as a class B member, and one and one‑fourth per cent for credited service earned as a class C member. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i). The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(f)(1), (2), (3), or (4). If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (g)." SECTION 4. Section 88-321, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The following members may not elect to become a class H member under subsection (a): (1) Judges, elected officials, and legislative officers[;] in service prior to July 1, 2023; (2) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, prosecuting attorney investigators not making the election under section 88-271, corrections officers not making the election under section 88-271, and public safety investigations staff investigators; (3) Police officers and firefighters; (4) All employees who were members on July 1, 1957, who elected not to be covered by the Social Security Act; (5) Former class A, B, or C retirants; and (6) Any former class A or class B member who received a refund of contributions picked up and paid by the member's employer pursuant to section 88-46(b), unless the refund was made pursuant to section 88-96 or 88‑271(b), including any class C member whose contributions were refunded to the member pursuant to section 88-46.5 in the form in which it existed at any time prior to July 1, 2006." SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
4848
4949 SECTION 1. Section 88-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
5050
5151 "(a) There shall be four classes of members in the system to be known as class A, class B, class C, and class H, defined as follows:
5252
5353 (1) Class A shall consist of:
5454
5555 (A) Judges, elected officials, and legislative officers[;] in service prior to July 1, 2023;
5656
5757 (B) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, and public safety investigations staff investigators;
5858
5959 (C) Those members in service prior to July 1, 1984, including those who are on approved leave of absence, not making the election to become a class C member as provided in part VII or to become a class H member as provided in part VIII;
6060
6161 (D) The following members in service prior to July 1, 2006, including those who are on approved leave of absence, not making the election to become a class H member as provided in part VIII:
6262
6363 (i) Members whose salaries are set forth in sections 26-52 and 26-53 and their county counterparts, managing directors or an administrative assistant to the mayor, other county department heads, and agency heads appointed and subject to removal by the mayor;
6464
6565 (ii) First deputies appointed by the county attorney and prosecuting attorney;
6666
6767 (iii) The county clerk and deputy county clerk of each county;
6868
6969 (iv) The directors of the offices of council services of the county of Maui and the city and county of Honolulu;
7070
7171 (v) The administrative director of the courts;
7272
7373 (vi) The deputy administrative director of the courts;
7474
7575 (vii) The executive officer of the labor and industrial relations appeals board; and
7676
7777 (viii) The executive officer of the Hawaii labor relations board;
7878
7979 (E) All former class A retirants who return to employment after June 30, 1984, requiring the retirant's active membership; and
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8181 (F) All former class B retirants who return to employment requiring the retirant's active membership, except for:
8282
8383 (i) Former retirants who return in the positions of police officer or firefighter;
8484
8585 (ii) Former retirants who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and
8686
8787 (iii) Former retirants who were in positions to which coverage under Title II of the Social Security Act was not extended who entered membership after June 30, 1957, but before January 1, 2004;
8888
8989 (2) Class B shall consist of:
9090
9191 (A) Police officers and firefighters, including former retirants who return to service in such capacity;
9292
9393 (B) All employees, including former retirants, who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and
9494
9595 (C) All employees, including former retirants, in positions to which coverage under Title II of the Social Security Act is not extended, who enter membership after June 30, 1957, but before January 1, 2004, not making the election to become a class H member as provided in part VIII;
9696
9797 (3) Except for members described in paragraphs (1) and (2), class C shall consist of all employees, not making the election to become a class H member as provided in part VIII, who:
9898
9999 (A) First enter service after June 30, 1984, but before July 1, 2006;
100100
101101 (B) Reenter service after June 30, 1984, but before July 1, 2006, without vested benefit status as provided in section 88-96(b);
102102
103103 (C) Make the election to become a class C member as provided in part VII; or
104104
105105 (D) Are former class C retirants who return to service requiring the retirant's active membership; and
106106
107107 (4) Except for members described in paragraphs (1) and (2), class H shall consist of all employees who:
108108
109109 (A) First enter service after June 30, 2006;
110110
111111 (B) Reenter service after June 30, 2006, without vested benefit status as provided in section 88‑96(b);
112112
113113 (C) Make the election to become a class H member as provided in part VIII; or
114114
115115 (D) Are former class H retirants who return to service requiring the retirant's active membership."
116116
117117 SECTION 2. Section 88-73, Hawaii Revised Statutes, is amended as follows:
118118
119119 1. By amending subsection (a) to read:
120120
121121 "(a) Any member who:
122122
123123 (1) Became a member before July 1, 2012, and has at least five years of credited service and has attained age fifty-five;
124124
125125 (2) Became a member before July 1, 2012, and has at least twenty-five years of credited service;
126126
127127 (3) Has at least ten years of credited service, which includes service as a judge before July 1, 1999[,]; an elective officer[,] before July 1, 2023; or a legislative officer[;] before July 1, 2023;
128128
129129 (4) Becomes a member after June 30, 2012, and has at least ten years of credited service and has attained age sixty; or
130130
131131 (5) Becomes a member after June 30, 2012, and has at least twenty-five years of credited service and has attained age fifty-five,
132132
133133 shall become eligible to receive a retirement allowance after the member has terminated service."
134134
135135 2. By amending subsection (d) to read:
136136
137137 "(d) Any member of the legislature who first earned credited service as a member of the legislature before July 1, 2023, and who attains age sixty-five may retire and receive a service retirement allowance although the member continues to fill the elective position."
138138
139139 SECTION 3. Section 88-74, Hawaii Revised Statutes, is amended as follows:
140140
141141 1. By amending subsections (b) through (d) to read:
142142
143143 "(b) If a member, who became a member before July 1, 2012, has attained age fifty-five, the member's maximum retirement allowance shall be two per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer[,] who first earned credited service as a judge, elective officer, or legislative officer before July 1, 2023, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of two per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:
144144
145145 (1) After June 30, 1968, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;
146146
147147 (2) After June 30, 1977, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer;
148148
149149 (3) After June 16, 1981, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general;
150150
151151 (4) After June 30, 1989, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator;
152152
153153 (5) After December 31, 1993, if the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a water safety officer;
154154
155155 (6) After June 30, 1994, if the member has at least ten years of credited service, of which the last five or more years prior to retirement are credited service as a public safety investigations staff investigator;
156156
157157 (7) After June 30, 2002, if the member:
158158
159159 (A) Has at least ten years of credited service as a firefighter;
160160
161161 (B) Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and
162162
163163 (C) Continues employment in a class A or B position other than a firefighter; and
164164
165165 (8) After June 30, 2004, if the member:
166166
167167 (A) Has at least ten years of credited service as a police officer;
168168
169169 (B) Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and
170170
171171 (C) Continues employment in a class A or B position other than a police officer;
172172
173173 then for each year of 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, water safety officer, or public safety investigations staff investigator, the retirement allowance shall be two and one-half per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e).
174174
175175 (c) If a member, who became a member prior to July 1, 2012, [has] and who first earned credited service as a judge[,] before July 1, 2023, the member's retirement allowance shall be computed on the following basis:
176176
177177 (1) For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one‑half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
178178
179179 (2) For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e);
180180
181181 (3) For a member who first earned credited service as a judge after June 30, 2012, but before July 1, 2023, for each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i);
182182
183183 (4) For a judge with other credited service, as provided in subsection (b). If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty‑five, reduced for age as provided in subsection (e); or
184184
185185 (5) For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (d).
186186
187187 No allowance shall exceed seventy-five per cent of the member's average final compensation. If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in paragraphs (1), (2), and (3) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation.
188188
189189 (d) If a member, who became a member before July 1, 2012, [has] and who first earned credited service as an elective officer or as a legislative officer[,] before July 1, 2023, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), (4), (5), and (6) as follows:
190190
191191 (1) For a member who has credited service as an elective officer before July 1, 2012, irrespective of age, for each year of credited service as an elective officer, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
192192
193193 (2) For a member, who first earned credited service as an elective officer after June 30, 2012, but before July 1, 2023, irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
194194
195195 (3) For a member who has credited service as a legislative officer before July 1, 2012, irrespective of age, for each year of credited service as a legislative officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
196196
197197 (4) For a member who first earned credited service as a legislative officer after June 30, 2012, but before July 1, 2023, irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
198198
199199 (5) If the member has credited service as a judge, the member's retirement allowance shall be computed on the following basis:
200200
201201 (A) For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
202202
203203 (B) For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, and has attained the age of fifty-five, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88‑81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty-five, reduced for age as provided in subsection (e); and
204204
205205 (C) For a member who first earned credited service as a judge after June 30, 2012, but before July 1, 2023, and has attained the age of sixty, for each year of credited service as a judge, three per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and
206206
207207 (6) For each year of credited service not included in paragraph (1), (2), (3), (4), or (5), the average final compensation as computed under section 88‑81(e)(4) shall be multiplied by two per cent for credited service earned as a class A or class H member, two and one-half per cent for credited service earned as a class B member, and one and one‑quarter per cent for credited service earned as a class C member. If the member has not attained age fifty-five, the member's retirement allowance shall be computed as though the member had attained age fifty‑five, reduced for age as provided in subsection (e).
208208
209209 The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(e)(1), (2), (3), or (4). If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), (3), (4), and (5) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (c)."
210210
211211 2. By amending subsections (f) through (h) to read:
212212
213213 "(f) If a member, who becomes a member after June 30, 2012, has attained age sixty, the member's maximum retirement allowance shall be one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of the member's credited service as a class A and class B member, excluding any credited service as a judge, elective officer, or legislative officer[,] who first earned credited service as a judge, elective officer, or legislative officer before July 1, 2023, plus a retirement allowance of one and one-fourth per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class C member, plus a retirement allowance of one and three-fourths per cent of the member's average final compensation multiplied by the total number of years of prior credited service as a class H member; provided that:
214214
215215 (1) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;
216216
217217 (2) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a corrections officer;
218218
219219 (3) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as an investigator of the department of the attorney general;
220220
221221 (4) If the member has at least ten years of credited service of which the last five or more years prior to retirement is credited service as a narcotics enforcement investigator;
222222
223223 (5) If the member has at least ten years of credited service, of which the last five or more years prior to retirement is credited service as a public safety investigations staff investigator;
224224
225225 (6) If the member:
226226
227227 (A) Has at least ten years of credited service as a firefighter;
228228
229229 (B) Is deemed permanently medically disqualified due to a service related disability to be a firefighter by the employer's physician; and
230230
231231 (C) Continues employment in a class A or class B position other than a firefighter; and
232232
233233 (7) If the member:
234234
235235 (A) Has at least ten years of credited service as a police officer;
236236
237237 (B) Is deemed permanently medically disqualified due to a service related disability to be a police officer by the employer's physician; and
238238
239239 (C) Continues employment in a class A or class B position other than a police officer,
240240
241241 then for each year of 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, or public safety investigations staff investigator, the retirement allowance shall be two and one-fourth per cent of the member's average final compensation. The maximum retirement allowance for those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i).
242242
243243 (g) If a member, who becomes a member after June 30, 2012, [has] and who first earned credited service as a judge[,] before July 1, 2023, the member's retirement allowance shall be computed on the following basis:
244244
245245 (1) For each year of credited service as a judge, three per cent of the member's average final compensation in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i);
246246
247247 (2) For a judge with other credited service, as provided in subsection (f). If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and
248248
249249 (3) For a judge with credited service as an elective officer or as a legislative officer, as provided in subsection (h).
250250
251251 No allowance shall exceed seventy-five per cent of the member's average final compensation. If the allowance exceeds this limit, it shall be adjusted by reducing the annuity included in paragraph (1) and the portion of the accumulated contributions specified in paragraph (1) in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. The allowance for judges under this subsection, together with the retirement allowance provided by the federal government for similar service, shall in no case exceed seventy-five per cent of the member's average final compensation.
252252
253253 (h) If a member, who becomes a member after June 30, 2012, [has] and who first earned credited service as an elective officer or as a legislative officer[,] before July 1, 2023, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), and (4) as follows:
254254
255255 (1) Irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(f)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
256256
257257 (2) Irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(f)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;
258258
259259 (3) For each year of credited service as a judge[,] and the member first earned credited service as a judge before July 1, 2023, three per cent of the member's average final compensation as computed under section 88‑81(f)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i); and
260260
261261 (4) For each year of credited service not included in paragraph (1), (2), or (3), the average final compensation as computed under section 88-81(f)(4) shall be multiplied by one and three-fourth per cent for credited service earned as a class A or class H member, two and one-fourth per cent for credited service earned as a class B member, and one and one‑fourth per cent for credited service earned as a class C member. If the member has not attained age sixty, the member's retirement allowance shall be computed as though the member had attained age sixty, reduced for age as provided in subsection (i).
262262
263263 The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(f)(1), (2), (3), or (4). If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), and (3) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay. If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (g)."
264264
265265 SECTION 4. Section 88-321, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
266266
267267 "(c) The following members may not elect to become a class H member under subsection (a):
268268
269269 (1) Judges, elected officials, and legislative officers[;] in service prior to July 1, 2023;
270270
271271 (2) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, prosecuting attorney investigators not making the election under section 88-271, corrections officers not making the election under section 88-271, and public safety investigations staff investigators;
272272
273273 (3) Police officers and firefighters;
274274
275275 (4) All employees who were members on July 1, 1957, who elected not to be covered by the Social Security Act;
276276
277277 (5) Former class A, B, or C retirants; and
278278
279279 (6) Any former class A or class B member who received a refund of contributions picked up and paid by the member's employer pursuant to section 88-46(b), unless the refund was made pursuant to section 88-96 or 88‑271(b), including any class C member whose contributions were refunded to the member pursuant to section 88-46.5 in the form in which it existed at any time prior to July 1, 2006."
280280
281281 SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
282282
283283 SECTION 6. This Act shall take effect upon its approval.
284284
285285
286286
287287 INTRODUCED BY: _____________________________
288288
289289 INTRODUCED BY:
290290
291291 _____________________________
292292
293293
294294
295295
296296
297297 Report Title: ERS; Judges; Elected Officials; Legislative Officers Description: Requires that individuals who first begin employment as a judge, elected official, or legislative officer after 6/30/2023, be subject to the same Employees' Retirement System benefits as other state or county employees who began their employment after 6/30/2012. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
298298
299299
300300
301301
302302
303303 Report Title:
304304
305305 ERS; Judges; Elected Officials; Legislative Officers
306306
307307
308308
309309 Description:
310310
311311 Requires that individuals who first begin employment as a judge, elected official, or legislative officer after 6/30/2023, be subject to the same Employees' Retirement System benefits as other state or county employees who began their employment after 6/30/2012.
312312
313313
314314
315315
316316
317317
318318
319319 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.