Bill Text: HI SB649 | 2012 | Regular Session | Introduced
Bill Title: Employees' Retirement System; Appropriation
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB649 Detail]
Download: Hawaii-2012-SB649-Introduced.html
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THE SENATE |
S.B. NO. |
649 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the employees' retirement system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 160, Session Laws of Hawaii 2006, directed the department of budget and finance to conduct a study on providing post-retirement allowance increases to retirees, particularly those individuals who have been retired for a great number of years. The resulting study indicated that in the interest of fairness, any allowance increase should take into account the number of years that an individual has been in retirement as well as the number of years of service that the retiree rendered to the State.
The legislature finds that the last time an ad hoc increase was provided by the employees' retirement system was the 2002‑2003 fiscal year. That increase was a one-time, lump sum pension bonus for retirees age seventy and older, with twenty or more years of service.
The purpose of this Act is to help offset the effects of inflation on older retirees' pensions by providing an annual lump sum payment to retirees who are at least seventy-five years old and who have been in retirement for at least twenty years. The legislature notes that the payments provided by this Act to certain older retirees shall be lump sum payments and are not intended to provide an enhanced pension benefit.
SECTION 2. Section 88-11, Hawaii Revised Statutes, is amended to read as follows:
"§88-11 Bonus; pensioners' special
compensation; amounts available. (a) Except as [herein]
provided[,] in this section, every pension payable under the [employees]
employees' retirement system [or payable], pursuant to any
law of the State, or by any county or independent public board or commission[,]
shall be increased by a bonus for each month as follows:
(1) Effective July 1, 1976, $77.82 per month to those retirants and pensioners who had, before July 1, 1966, ten or more years of service; provided that any member who is retired because of physical or mental disability due to any injury or disease incurred while in the performance of the member's duty as a public employee shall be entitled to receive the bonus payment without meeting the minimum service requirement;
(2) Effective July 1, 1976, $31.12 per month
additional to the [above] bonus provided in paragraph (1) to
those retirants or pensioners who retired before July 1, 1945;
(3) Effective July 1, 1976, $31.12 per month
additional to the above [bonus or] bonuses provided in paragraphs (1)
and (2) to those retirants or pensioners who have had twenty-one or more
years of service;
(4) Effective July 1, 1976, if the pension as
increased by the bonus or bonuses does not equal $202.32 per month, the bonus
shall be further increased by [such] the sum, not in excess of
$31.12, as will bring the total of the pension and bonus to $202.32 per month;
provided that where the dependents of a deceased pensioner are receiving
pension by reasons of the pensioner's death, the total only of all amounts paid
to all of the dependents shall be [so] increased, and the
increase [herein] shall be shared by [them] the dependents
in proportion to the respective amount of pension receivable by [them] each
dependent exclusive of this increase;
(5) In the case of any retirement allowance for
service commencing after June 30, 1965, paid pursuant to paragraph (1)
or (3) of section 88-74, the only bonus payable shall be in the amount by which
the benefit payable under [the] paragraphs (1) and (3) of section
88-74 is less than the bonus [as set forth above;] as provided in
paragraph (4) of this section; provided that in no case shall a person who
retires after June 30, 1965, receive less under the service and ordinary
disability retirement system benefits, plus the bonus payable under this
section than the person would have received if this paragraph [(5)]
had not been enacted;
(6) Any provisions of this section to the contrary notwithstanding, there shall be paid to every person who on June 30, 1965, was receiving a retirement allowance from the system or other pension payable under or pursuant to the law of the State or by any county or independent board or commission, a special cost of living bonus, which shall be paid in the following manner:
(A) On January 1, 1966, seven and one-half per cent of the retirement allowance or pension;
(B) On July 1, 1969, an additional ten per cent of the retirement allowance or pension;
(C) On July 1, 1970, an additional ten per cent of the retirement allowance or pension;
(D) On July 1, 1973, an additional five and one-half per cent of the retirement allowance or pension; and
(E) On July 1, 1976, an additional eight per cent of the retirement allowance or pension;
(7) Any provision of this section to the contrary notwithstanding, there shall be paid to every person who retired between July 1, 1965, and June 30, 1970, and who, on June 30, 1974, was receiving a retirement allowance from the system or other pension payable under or pursuant to the law of the State or by any county or independent board or commission, a special cost of living bonus which shall be paid in the following manner:
(A) On July 1, 1974, five and one-half per cent of the retirement allowance or pension; and
(B) On July 1, 1976, an additional eight per cent of the retirement allowance or pension;
(8) Any other provision to the contrary notwithstanding, effective July 1, 1980, there shall be paid to every person who retired prior to July 1, 1975, and who on June 30, 1980, was receiving a retirement allowance from the system or other pension payable under or pursuant to the law of the State or by any county or independent board or commission, a special cost of living bonus, which shall be paid in the following manner:
(A) $4.50 a month for each year of the retirant's or pensioner's credited service, if the person retired prior to July 1, 1965;
(B) $2.50 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1965, but prior to July 1, 1970; and
(C) $1.00 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1970, but prior to July 1, 1975;
provided that if the [retirants] retirant
or pensioner had retired, returned to service, and again retired, the person's
latest retirement date shall be considered as the person's date of retirement;
provided further that no special cost of living bonus as provided for in this
paragraph shall be paid to those retirants or pensioners who have eight or less
years of credited service;
(9) Any other provision to the contrary notwithstanding, effective July 1, 1984, there shall be paid to every person who retired after June 30, 1970, but prior to July 1, 1979, and who on June 30, 1984, was receiving a retirement allowance from the system or other pension payable under or pursuant to the law of the State or by any county or independent board or commission, a special cost of living bonus, which shall be paid in the following manner:
(A) $.50 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1970, but prior to July 1, 1975; and
(B) $1.00 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1975, but prior to July 1, 1979;
provided that if the retirant or pensioner had retired, returned to service, and again retired, the person's latest retirement date shall be considered as the person's date of retirement; provided further that no special cost of living bonus as provided for in this paragraph shall be paid to those retirants or pensioners who have eight or less years of credited service; and
(10) Any other provision to the contrary notwithstanding, effective July 1, 1988, there shall be paid to every person who retired prior to July 1, 1982, and who on June 30, 1988, was receiving a retirement allowance from the system or other pension payable under or pursuant to the law of the State or by any county or independent board or commission, a special cost of living bonus, which shall be paid in the following manner:
(A) $3.50 a month for each year of the retirant's or pensioner's credited service, if the person retired prior to July 1, 1965;
(B) $2.50 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1965, but prior to July 1, 1970;
(C) $1.50 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1970, but prior to July 1, 1975; and
(D) $1.00 a month for each year of the retirant's or pensioner's credited service if the person retired after June 30, 1975, but prior to July 1, 1982;
provided that if the retirant or pensioner
had retired, returned to service, and again retired, the person's latest
retirement date shall be considered as the person's date of retirement;
provided further that no special cost of living bonus as provided for in this
paragraph shall be paid to those retirants or pensioners who have ten or less
years of credited service[;].
[(11)] (b) Any other provision
to the contrary notwithstanding, effective July 1, 1990, and each July 1,
thereafter until June 30, 1999, bonuses shall be paid to retirants and
pensioners with ten or more years of service or to their beneficiaries who are
receiving a monthly benefit from the system, in accordance with this [paragraph;]
subsection; provided that the requirement of ten or more years of
service shall not apply in the case of a person who retires with less than ten
years of service because of a service connected disability; and provided
further that if the retirant or pensioner is currently receiving a larger bonus
than what would be payable under this [paragraph] subsection the
retirant or pensioner shall continue to receive the bonus amount received on
June 30, 1990, until the retirant's or pensioner's bonus calculated under this [paragraph]
subsection exceeds the June 30, 1990, bonus amount at which time
the difference between the June 30, 1990, bonus and the bonus calculated under
this [paragraph] subsection would be payable.
The bonus amounts payable under this [paragraph]
subsection shall be based on years of retirement and shall be a
cumulative amount to include all previous bonuses and shall not exceed:
[(A)] (1) $1.25 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has
been retired a minimum of five years by July 1 in the year in which the bonus
is effective;
[(B)] (2) $2.50 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has
been retired a minimum of ten years by July 1 in the year in which the bonus is
effective;
[(C)] (3) $4.50 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has been
retired a minimum of fifteen years by July 1 in the year in which the bonus is
effective;
[(D)] (4) $6.00 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has
been retired a minimum of twenty years by July 1 in the year in which the bonus
is effective;
[(E)] (5) $8.75 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has
been retired a minimum of twenty-five years by July 1 in the year in which the
bonus is effective;
[(F)] (6) $10.50 for each year of the
retirant's or pensioner's credited service if the retirant or pensioner has
been retired a minimum of thirty years by July 1 in the year in which the bonus
is effective; and
[(G)] (7) Any provision to the contrary
notwithstanding, any retirant or pensioner with ten or more years of service
who on July 1 of the year in which the bonus is being calculated has been
retired a minimum of twenty years and whose current bonus amount exceeds the
maximum specified in this paragraph shall nevertheless receive a pension
increase of $1.25 for each year of credited service.
For the purposes of this [paragraph,] subsection,
if the retirant or pensioner had retired, returned to service, and again
retired, the latest retirement date shall be considered as the date of
retirement[; and].
[(12)] (c) Notwithstanding any
other provision to the contrary, in fiscal year 2002-2003, each state and
county retiree who is seventy years of age and older with at least twenty years
of credited service as of June 30, 2002, shall receive a one time, lump sum
bonus of $200. Any lump sum bonus paid pursuant to this [paragraph] subsection
shall not be construed to increase a retirant's basic monthly pension
accumulation or any other post retirement benefit provided under this chapter.
(d) Notwithstanding any other provision to the contrary, in fiscal year 2009-2010, and every year thereafter, each state or county retirant who is seventy-five years of age or older who has at least twenty years of retirement as of June 30, 2011, shall receive an annual lump sum pension payment equal to $1.00 for every month of every year of the retirant's credited service. Lump sum pension payments pursuant to this subsection shall not be construed to increase a retirant's basic monthly pension accumulation or any other post retirement benefit provided under this chapter."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 to provide retirants who are aged seventy-five or older and who have been retired for at least twenty years as of June 30, 2011, an annual lump sum pension payment equal to $1.00 for every month of every year of the retirant's credited service.
The sums appropriated shall be expended by the employees' retirement system for the purposes of this Act.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2011.
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INTRODUCED BY: |
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Report Title:
Employees' Retirement System; Appropriation
Description:
Provides annual lump sum payments for retirees at least seventy-five years old who have been in retirement for at least twenty years as of June 30, 2011; makes appropriation.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
