Hawaii-2012-SB2357-Introduced

SECTION 1. Section 88-321, Hawaii Revised Statutes, is amended to read as follows:

"§88-321 Election and membership. (a) Any member, except for a member described in subsection (c), who is in service on June 30, 2006, may elect to become a class H member effective July 1, 2006, by filing an election form with the system in accordance with this section. The election shall be made prior to April 1, 2006, by members in service on February 28, 2006; provided that any member in service on February 28, 2006, who is absent from the State on that date while in the military service of the United States, shall have thirty days after the member returns to the member's regular employment with the State or a county to make the election. The election shall be made by members entering or returning to service from March 1, 2006, through June 30, 2006, within sixty days of entering or returning to service. The election shall be irrevocable[.], except as provided in subsection (d).

(b) Notwithstanding any other law to the contrary:

(1) A class C member who returns to service after June 30, 2006, and who does not return to service as a class A or a class B member shall become a class H member upon return to service; provided that, if the member is a 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), the member may not become a class H member and shall return to service as a class C member, unless the refund was made pursuant to section 88-96 or 88-271(b);

(2) A class A or a class B member, who returns to service after June 30, 2006, but does not have vested benefit status as provided in section 88-96(b) and who does not return to service as a class A or class B member, shall become a class H member upon return to service and the member's credited service as a class A or B member shall be converted to class C credited service. The system shall return to the member the member's accumulated contributions if the member's accumulated contributions are $1,000 or less at the time of distribution. If the member's accumulated contributions for the class A or B credited service that was converted to class C credited service are greater than $1,000 and the member does not make written application, contemporaneously with the member's return to service, for return of such contributions, the member, except as provided by section 88-341, may not withdraw the member's accumulated contributions for the class A or B credited service that was converted to class C credited service until the member retires or attains age sixty-two;

(3) A class A member who returns to service after June 30, 2008, with vested benefit status and who does not return to service as a class B member shall return to service as a class A member; and

(4) A class B member who returns to service after June 30, 2008, with vested benefit status and who does not return to service as a class B member shall return to service as a class A member.

(1) Judges, elected officials, and legislative officers;

(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.

(d) Effective July 1, 2012, any member, except for a member described in subsection (c), who:

(1) Was in service on June 30, 2006;

(2) Was eligible to elect to become a class H member but did not elect to become a class H member within the time required by subsection (a); and

(3) Is currently in service;

may elect to become a class H member beginning July 1, 2013, or July 1 of any subsequent odd-numbered year. The election shall be made prior to April 1 of the odd-numbered year the member seeks to become a class H member. The election pursuant to this subsection shall be irrevocable."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2357
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII