Bill Text: HI SB249 | 2017 | Regular Session | Amended
Bill Title: Relating To Retirement.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2017-04-28 - Conference committee meeting to reconvene on 04-28-17 4:45PM in conference room 309. [SB249 Detail]
Download: Hawaii-2017-SB249-Amended.html
THE SENATE |
S.B. NO. |
249 |
TWENTY-NINTH LEGISLATURE, 2017 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO RETIREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 88-74, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (c) and (d) to read:
"(c) If a member, who became a member prior to July 1, 2012, has credited service as a judge, 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, 2050, 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 member who first earned credited service as a judge after June 30, 2050, for each year of credited service as a judge, two 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)] (5) 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)] (6) 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)] to (4) and the portion of the accumulated
contributions specified in paragraphs (1)[, (2), and (3)] to (4)
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 credited service as an elective officer or as a legislative officer, 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, 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, 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, 2050, 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
(D) For a member who first earned credited service as a judge after June 30, 2050, and has attained age sixty, for each year of credited service as a judge, two 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 (g) and (h) to read:
"(g) If a member, who becomes a member
after June 30, 2012, has credited service as a judge[,]:
(1) For a member who first earned credited service as a judge prior to July 1, 2050, the member's retirement allowance shall be computed on the following basis:
[(1)] (A)
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)] (B) 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)] (C) For
a judge with credited service as an elective officer or as a legislative
officer, as provided in subsection (h)[.]; and
(2) For a member who first earned credited service as a judge after June 30, 2050, the member's retirement allowance shall be computed on the following basis:
(A) For each year of credited service as a judge, two 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);
(B) 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
(C) 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)]
(1)(A) and the portion of the accumulated contributions specified in
paragraph [(1)] (1)(A) 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 credited service as an elective officer or as a legislative officer, 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[,]
who first earned credited service as a judge:
(A) Prior
to July 1, 2050, 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[.];
(B) After June 30, 2050, two 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 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, 2050.
Report Title:
Retirement; Pension; Judges; Employees' Retirement System
Description:
Reduces the percentage of average final compensation used to calculate the retirement allowance for a member who first earned credited service as a judge after June 30, 2050, to two per cent. (SB249 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.