Bill Text: HI HB1392 | 2024 | Regular Session | Introduced

---

Bill Title: Relating To The Employees' Retirement System.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [HB1392 Detail]

Download: Hawaii-2024-HB1392-Introduced.html

---

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:

 

     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:	_____________________________

 

 

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.