Bill Text: HI SB2236 | 2018 | Regular Session | Introduced
Bill Title: Relating To Retirement Allowance Options.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-06 - The committee on LBR deferred the measure. [SB2236 Detail]
Download: Hawaii-2018-SB2236-Introduced.html
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THE SENATE |
S.B. NO. |
2236 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to retirement allowance options.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 88-83, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Upon retirement, any member may elect to receive the maximum retirement allowance to which the member is entitled computed in accordance with section 88-74, 88-76, or 88-80, and in the event of the retirant's death, there shall be paid to the retirant's designated beneficiary, or otherwise to the retirant's estate the difference between:
(1) The balance of the member's accumulated
contributions at the time of the member's retirement; and
(2) The retirement allowance and, if the retirant
retired after November 30, 2004, the post retirement allowances paid or payable
to the retirant prior to death.
In lieu of this maximum allowance, the member may elect to receive the member's retirement allowance under any one of the optional plans described below, which shall be actuarially equivalent to the maximum allowance.
Option 1: The member may elect to receive a lesser retirement allowance during the member's lifetime. At the member's retirement, there shall be established an amount of initial insurance that shall be computed on the basis of actuarial factors adopted by the board. Upon the death of the retirant, there shall be paid to the retirant's designated beneficiary, otherwise to the retirant's estate: any balance remaining in the initial insurance reserve, after deducting the retirement allowance and, if the retirant retired after November 30, 2004, the post retirement allowances paid to the retirant prior to death. In lieu of the lump sum balance, the beneficiary may, if the beneficiary is a natural person, elect to receive an allowance for life based on the value of the balance; provided that the allowance is not less than $100 per month. If the beneficiary of the retirant who:
(1) Retired after November 30, 2004, and
(2) Dies after June 30, 2007,
elects to receive the allowance in lieu of the lump sum balance, there shall also be payable to the beneficiary an additional allowance calculated and payable in the same manner as a post retirement allowance under section 88-90. The additional allowance shall be based on the original amount of the allowance in lieu of the lump sum balance, and shall commence on the first day of July following the calendar year in which payment of the allowance in lieu of the lump sum balance is effective.
Option 2: The member may elect to receive a lesser retirement allowance during the member's lifetime and have those allowances, including cumulative post retirement allowances, if applicable, continued after the member's death to the member's beneficiary designated at the time of the member's retirement, for the life of the beneficiary. If the beneficiary dies prior to the retirant, all further payments shall cease upon the death of the retirant; provided that for members retiring after November 30, 2004, if the retirant's designated beneficiary dies at any time after the retirant retired, but before the death of the retirant, the retirant, upon the death of the retirant's designated beneficiary, shall receive a retirement allowance, including cumulative post retirement allowances, calculated as if the retirant had selected the maximum retirement allowance to which the retirant is entitled. Only one beneficiary shall be designated under this option. The beneficiary designated under this option shall be a natural person, and benefits under this option shall only be paid to a natural person.
Option
3: The member may elect to receive a
lesser retirement allowance during the member's lifetime and have one-half of
the allowance, including fifty per cent of all cumulative post retirement
allowances, if applicable, continued after the member's death to the member's
beneficiary designated at the time of the member's retirement, for the life of
the beneficiary. If the beneficiary dies
prior to the retirant, all further payments shall cease upon the death of the [retirant;]
beneficiary; provided that for members retiring after November 30,
2004, if the retirant's designated beneficiary dies at any time after the retirant
retired, but before the death of the retirant, the retirant, upon the death of
the retirant's designated beneficiary, shall receive a retirement allowance,
including cumulative post retirement allowances, calculated as if the retirant
had selected the maximum retirement allowance to which the retirant is
entitled. Only one beneficiary shall be
designated under this option. The
beneficiary designated under this option shall be a natural person, and
benefits under this option shall only be paid to a natural person.
Option 4: The member may elect to receive a lesser retirement allowance during the member's lifetime and provide some other benefit to the member's beneficiary in accordance with the member's own specification; provided that this election shall be certified by the actuary to be the actuarial equivalent of the member's retirement allowance and shall be approved by the board.
Option 5: The member may elect to receive the balance of the member's accumulated contributions at the time of retirement in a lump sum and, during the member's lifetime, a retirement allowance equal to the maximum retirement allowance reduced by the actuarial equivalent of these contributions. Upon the death of the retirant, all further payments shall cease. Only a member retiring from service having at least ten years of credited service or for disability may elect this retirement allowance option.
To receive benefits, the beneficiary must have been designated by the member in the form and manner prescribed by the board."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2018.
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INTRODUCED BY: |
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Report Title:
Retirement Allowance Options; Beneficiaries
Description:
Corrects inconsistent terminology in statutory provisions relating to beneficiaries of retirement benefits dying prior to the death of the retirant.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
