REPORT TITLE:
Judiciary; Salaries


DESCRIPTION:
Provides salary increases for judges.  Changes retirement
provisions for future judges. (HB20 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        20
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE JUDICIARY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1. The legislature finds that Hawaii's failure to
 
 2 adequately compensate its judges is adversely affecting the
 
 3 quality of justice.  Insufficient compensation creates the risk
 
 4 that judges will leave the bench, thus depriving the public of
 
 5 the significant value of experienced jurists.  Since 1992, ten
 
 6 seasoned and experienced judges have left Hawaii's bench due, in
 
 7 part, to the lack of adequate compensation.  The legislature
 
 8 notes that in recent months, another two seasoned justices have
 
 9 announced their intention to leave the bench.  The Judicial
 
10 Salary Commission believes that these departures will continue
 
11 until compensation is adjusted.  Therefore, the legislature
 
12 recognizes that an increase in judicial salaries is required in
 
13 order to ensure that the most highly qualified individuals will
 
14 be attracted to the state judiciary and will be able to serve and
 
15 continue to serve without unreasonable economic hardship.
 
16      The purpose of this Act is to:
 
17      (1)  Amend the service retirement laws to correlate years on
 
18           the bench with retirement benefits; and
 
19      (2)  Increase judicial salaries by 13 per cent over two
 
20           years.
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                              PART I
 
 2      SECTION 2.  Section 88-73, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "�88-73  Service retirement.  Retirement of a member on a
 
 5 service retirement allowance shall be made by the board of
 
 6 trustees or its designee as follows:
 
 7      (1)  Any member who has at least five years of credited
 
 8           service and who has attained age fifty-five or any
 
 9           member who has at least twenty-five years of credited
 
10           service or any member who has at least ten years of
 
11           credited service, [including] which includes service as
 
12           a judge[,] before July 1, 1999, an elective officer, or
 
13           [the chief clerk, assistant clerk, sergeant at arms, or
 
14           assistant sergeant at arms of either house of the
 
15           legislature] a legislative officer, may retire upon
 
16           written application to the board specifying on what
 
17           date, not less than thirty days nor more than ninety
 
18           days subsequent to the execution and filing thereof,
 
19           the member desires to be retired.  In the event of the
 
20           death of a member after the date of the filing of the
 
21           member's written application to retire, the designated
 
22           beneficiary, otherwise the personal representative of
 
23           the member's estate, shall receive the allowance under
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1           the option selected by the member which would have been
 
 2           payable had the member retired, and the benefits paid
 
 3           to the beneficiary or representative shall be computed
 
 4           as though the member had died on or after the effective
 
 5           date of the member's retirement;
 
 6      (2)  Any member who first earned credited service as a judge
 
 7           after June 30, 1999, may retire upon written
 
 8           application to the board specifying on what date, not
 
 9           less than thirty days nor more than ninety days
 
10           subsequent to the execution and filing thereof, the
 
11           member desires to be retired; provided that the member
 
12           has at least five years of credited service and has
 
13           attained age fifty-five or has at least twenty-five
 
14           years of credited service.  In the event of the death
 
15           of a member after the date of the filing of the
 
16           member's written application to retire, the designated
 
17           beneficiary, otherwise the personal representative of
 
18           the member's estate, shall receive the allowance under
 
19           the option selected by the member which would have been
 
20           payable had the member retired, and the benefits paid
 
21           to the beneficiary or representative shall be computed
 
22           as though the member had died on or after the effective
 
23           date of the member's retirement;
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1     [(2)] (3)  Any member of the legislature who attains age
 
 2           sixty-five may retire and receive a service retirement
 
 3           allowance although the member continues to fill the
 
 4           elective position;
 
 5     [(3)] (4)  For the purpose of computing or determining
 
 6           benefits for an elective officer or judge, or any
 
 7           beneficiary of either, the date upon which the elective
 
 8           officer or judge elected to retire, as provided by
 
 9           section 88-61(c), after attaining an allowance of
 
10           seventy-five per cent of average final compensation,
 
11           shall be used as the effective date of retirement;
 
12           provided that the elective officer or judge may
 
13           continue in active service, but shall not receive a
 
14           retirement allowance until termination of active
 
15           service; [however,] provided further that upon leaving
 
16           active service the elective officer or judge shall
 
17           receive the retirement allowance provided for in
 
18           section 88-74, together with the post retirement
 
19           allowances provided for in section 88-90, which post
 
20           retirement allowances shall be computed from the date
 
21           of the election as though the elective officer or judge
 
22           had left active service on that day; and
 
23     [(4)] (5)  In the case of a class A or B member who also has
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1           prior credited service under part VII, total credited
 
 2           service as a class A, class B, and class C member shall
 
 3           be used to determine the eligibility for retirement
 
 4           allowance."
 
 5      SECTION 3.  Section 88-74, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "�88-74  Allowance on service retirement.  Upon retirement
 
 8 from service, a member shall receive a retirement allowance as
 
 9 follows:
 
10      (1)  If the member has attained age fifty-five, a retirement
 
11           allowance of two per cent of the member's average final
 
12           compensation multiplied by the total number of years of
 
13           the member's credited service as a class A and B
 
14           member, excluding any credited service as [an] a judge,
 
15           elective officer, or legislative officer, plus a
 
16           retirement allowance of one and one-fourth per cent of
 
17           the member's average final compensation multiplied by
 
18           the total number of years of prior credited service as
 
19           a class C member; provided that:
 
20           (A)  After June 30, 1968, if the member has at least
 
21                ten years of credited service of which the last
 
22                five or more years prior to retirement is credited
 
23                service as a firefighter, police officer, or an
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                investigator of the department of the prosecuting
 
 2                attorney;
 
 3           (B)  After June 30, 1977, if the member has at least
 
 4                ten years of credited service of which the last
 
 5                five or more years prior to retirement is credited
 
 6                service as a corrections officer;
 
 7           (C)  After June 16, 1981, if the member has at least
 
 8                ten years of credited service of which the last
 
 9                five or more years prior to retirement is credited
 
10                service as an investigator of the department of
 
11                the attorney general;
 
12           (D)  After June 30, 1989, if the member has at least
 
13                ten years of credited service of which the last
 
14                five or more years prior to retirement is credited
 
15                service as a narcotics enforcement investigator; 
 
16           (E)  After December 31, 1993, if the member has at
 
17                least ten years of credited service of which the
 
18                last five or more years prior to retirement is
 
19                credited service as a water safety officer; and
 
20           (F)  After June 30, 1994, if the member has at least
 
21                ten years of credited service, of which the last
 
22                five or more years prior to retirement are
 
23                credited service as a public safety
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
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 1                [investigative] investigations staff investigator;
 
 2           then for each year of service as a firefighter, police
 
 3           officer, corrections officer, investigator of the
 
 4           department of the prosecuting attorney, investigator of
 
 5           the department of the attorney general, narcotics
 
 6           enforcement investigator, water safety officer, or
 
 7           public safety investigations staff investigator, the
 
 8           retirement allowance shall be two and one-half per cent
 
 9           of the member's average final compensation.  The
 
10           maximum retirement allowance for those members shall
 
11           not exceed eighty per cent of the member's average
 
12           final compensation.  If the member has not attained age
 
13           fifty-five, the member's retirement allowance shall be
 
14           computed as though the member had attained age fifty-
 
15           five, reduced in accordance with factors of actuarial
 
16           equivalence adopted by the board upon the advice of the
 
17           actuary; provided that no reduction shall be made if
 
18           the member has at least twenty-five years of credited
 
19           service as a firefighter, police officer, corrections
 
20           officer, investigator of the department of the
 
21           prosecuting attorney, investigator of the department of
 
22           the attorney general, narcotics enforcement
 
23           investigator, public safety investigations staff
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1           investigator, sewer worker, or water safety officer, of
 
 2           which the last five or more years prior to retirement
 
 3           is credited service in such capacities;
 
 4      (2)  If the member has made voluntary additional
 
 5           contributions for the purchase of an additional annuity
 
 6           and has not applied for a refund as permitted by
 
 7           section 88-72, the member may accept the refund at the
 
 8           time of retirement or, in lieu thereof, receive in
 
 9           addition to the retirement allowance provided in
 
10           paragraph (1), an annuity that is the actuarial
 
11           equivalent of the additional contributions with regular
 
12           interest;
 
13      (3)  If the member has credited service as a judge, the
 
14           member's retirement allowance shall be computed on the
 
15           following basis:
 
16           (A)  [Irrespective] For a member who has credited
 
17                service as a judge before July 1, 1999,
 
18                irrespective of age, for each year of credited
 
19                service as a judge, three and one-half per cent of
 
20                the member's average final compensation in
 
21                addition to an annuity that is the actuarial
 
22                equivalent of the member's accumulated
 
23                contributions allocable to the period of such
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                service; and
 
 2          [(B)  For all other credited service, as provided in
 
 3                paragraphs (1), (2) and (4).  No allowance shall
 
 4                exceed seventy-five per cent of the member's
 
 5                average final compensation.  If the allowance
 
 6                exceeds this limit, it shall be adjusted by
 
 7                reducing the annuity included in subparagraph (A),
 
 8                and the portion of the accumulated contributions
 
 9                specified in that subparagraph in excess of the
 
10                requirements of the reduced annuity shall be
 
11                returned to the member.
 
12                The allowance for judges under this paragraph,
 
13                together with the retirement allowance provided by
 
14                the federal government for similar service, shall
 
15                in no case exceed seventy-five per cent of the
 
16                member's average final compensation; or]
 
17           (B)  For a member who first earned credited service as
 
18                a judge after June 30, 1999, for each year of
 
19                credited service as a judge, three and one-half
 
20                per cent of the member's average final
 
21                compensation in addition to an annuity that is the
 
22                actuarial equivalent of the member's accumulated
 
23                contributions allocable to the period of such
 

 
Page 10                                                    20
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                service.  If the member has not attained age
 
 2                fifty-five, the member's retirement allowance
 
 3                shall be computed as though the member had
 
 4                attained age fifty-five, reduced in accordance
 
 5                with factors of actuarial equivalence adopted by
 
 6                the board upon the advice of the actuary; or
 
 7           (C)  For a judge with other credited service, as
 
 8                provided in paragraphs (1) and (2).  If the member
 
 9                has not attained age fifty-five, the member's
 
10                retirement allowance shall be computed as though
 
11                the member had attained age fifty-five, reduced in
 
12                accordance with factors of actuarial equivalence
 
13                adopted by the board upon the advice of the
 
14                actuary; or
 
15           (D)  For a judge with credited service as an elective
 
16                officer or as a legislative officer, as provided
 
17                in paragraph (4).
 
18           No allowance shall exceed seventy-five per cent of the
 
19           member's average final compensation.  If the allowance
 
20           exceeds this limit, it shall be adjusted by reducing
 
21           the annuity included in subparagraphs (A) and (B) and
 
22           the portion of the accumulated contributions specified
 
23           in the subparagraphs in excess of the requirements of
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1           the reduced annuity shall be returned to the member.
 
 2           The allowance for judges under this paragraph, together
 
 3           with the retirement allowance provided by the federal
 
 4           government for similar service, shall in no case exceed
 
 5           seventy-five per cent of the member's average final
 
 6           compensation; or
 
 7     (4)   If the member has credited service as an elective
 
 8           officer or as a legislative officer, the member's
 
 9           retirement allowance shall be derived by adding the
 
10           allowances computed separately under subparagraphs (A),
 
11           (B), (C), and (D) as follows:
 
12           (A)  Irrespective of age, for each year of credited
 
13                service as an elective officer, three and one-half
 
14                per cent of the member's average final
 
15                compensation as computed under section
 
16                88-81(d)(1), in addition to an annuity that is the
 
17                actuarial equivalent of the member's accumulated
 
18                contributions allocable to the period of service;
 
19                and
 
20           (B)  Irrespective of age, for each year of credited
 
21                service as a legislative officer, three and one-
 
22                half per cent of the member's average final
 
23                compensation as computed under section
 
24                88-81(d)(2), in addition to an annuity that is the
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
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 1                actuarial equivalent of the member's accumulated
 
 2                contributions allocable to the period of service;
 
 3           [(C) Irrespective of age, for each year of credited
 
 4                service as a judge, three and one-half per cent of
 
 5                the member's average final compensation as
 
 6                computed under section 88-81(d)(3), in addition to
 
 7                an annuity that is the actuarial equivalent of the
 
 8                member's accumulated contributions allocable to
 
 9                the period of service; and]
 
10           (C)  If the member has credited service as a judge, the
 
11                member's retirement allowance shall be computed on
 
12                the following basis:
 
13                (i)  For a member who has credited service as a
 
14                     judge before July 1, 1999, irrespective of
 
15                     age, for each year of credited service as a
 
16                     judge, three and one-half per cent of the
 
17                     member's average final compensation as
 
18                     computed under section 88-81(d)(3), in
 
19                     addition to an annuity that is the actuarial
 
20                     equivalent of the member's accumulated
 
21                     contributions allocable to the period of such
 
22                     service; and
 
23                (ii) For a member who first earned credited
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                     service as a judge after June 30, 1999, and
 
 2                     has attained the age of fifty-five, for each
 
 3                     year of credited service as a judge, three
 
 4                     and one-half per cent of the member's average
 
 5                     final compensation as computed under section
 
 6                     88-81(d)(3), in addition to an annuity that
 
 7                     is the actuarial equivalent of the member's
 
 8                     accumulated contributions allocable to the
 
 9                     period of such service. If the member has not
 
10                     attained age fifty-five, the member's
 
11                     retirement allowance shall be computed as
 
12                     though the member had attained age fifty-
 
13                     five, reduced in accordance with factors of
 
14                     actuarial equivalence adopted by the board
 
15                     upon the advice of the actuary; and
 
16           (D)  For each year of credited service not included in
 
17                subparagraph (A), (B), or (C), the average final
 
18                compensation as computed under section 88-81(d)(4)
 
19                shall be multiplied by two per cent, two and one-
 
20                half per cent, or one and one-quarter per cent, as
 
21                applicable to the credited service earned as a
 
22                class A, B, or C member, respectively.  If the
 
23                member has not attained age fifty-five, the
 

 
Page 14                                                    20
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1                member's retirement allowance shall be computed as
 
 2                though the member had attained age fifty-five,
 
 3                reduced in accordance with factors of actuarial
 
 4                equivalence adopted by the board upon the advice
 
 5                of the actuary.
 
 6           The total retirement allowance shall not exceed
 
 7           seventy-five per cent of the member's highest average
 
 8           final compensation calculated under section
 
 9           88-81(d)(1), (2), (3), or (4).  If the allowance
 
10           exceeds this limit, it shall be adjusted by reducing
 
11           any annuity accrued under subparagraphs (A), (B), and
 
12           (C) and the portion of the accumulated contributions
 
13           specified in these subparagraphs in excess of the
 
14           requirements of the reduced annuity shall be returned
 
15           to the member.  If a member has service credit as an
 
16           elective officer or as a legislative officer in
 
17           addition to service credit as a judge, then the
 
18           retirement benefit calculation contained in this
 
19           paragraph shall supersede the formula contained in
 
20           paragraph (3)."
 
21                              PART II
 
22      SECTION 4.  Section 602-2, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1      "�602-2 Salary, supreme court justices.  Effective
 
 2 [January 1, 1989,] July 1, 1999, the salary of the chief justice
 
 3 of the supreme court shall be [$90,699] $98,571 a year and the
 
 4 salary of each associate justice of the supreme court shall be
 
 5 [$89,699] $97,531 a year.  Effective [January 1, 1990,] July 1,
 
 6 2000, the salary of the chief justice of the supreme court shall
 
 7 be [$94,780] $102,514 a year and the salary of each associate
 
 8 justice of the supreme court shall be [$93,780] $101,432 a year."
 
 9      SECTION 5.  Section 602-52, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "�602-52  Salary.  Effective [January 1, 1989,] July 1,
 
12 1999, the salary of the chief judge of the intermediate appellate
 
13 court shall be [$87,199] $94,931 a year and the salary of each
 
14 associate judge shall be [$85,699] $93,371 a year.  Effective
 
15 [January 1, 1990,] July 1, 2000, the salary of the chief judge of
 
16 the intermediate appellate court shall be [$91,280] $98,728 a
 
17 year and the salary of each associate judge shall be [$89,780]
 
18 $97,106 a year."
 
19      SECTION 6.  Section 603-5, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "�603-5 Salary of circuit court judges.  Effective
 
22 [January 1, 1989,] July 1, 1999, the salary of each circuit court
 
23 judge of the various circuit courts of the State shall be
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1 [$82,699] $90,251 a year.  Effective [January 1, 1990,] July 1,
 
 2 2000, the salary of each circuit court judge of the various
 
 3 circuit courts of the State shall be [$86,780] $93,861 a year."
 
 4      SECTION 7.  Section 604-2.5, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "�604-2.5  Salary of district judges.  Effective [January 1,
 
 7 1989,] July 1, 1999, the salary of each district court judge of
 
 8 the various district courts of the State shall be [$77,699]
 
 9 $85,051 a year.  Effective [January 1, 1990,] July 1, 2000, the
 
10 salary of each district court judge of the various district
 
11 courts of the State shall be [$81,780] $88,453 a year.
 
12      Whenever the chief justice appoints a district court judge
 
13 of any of the various district courts of the State to serve
 
14 temporarily as a circuit court judge of any of the various
 
15 circuit courts of the State, the judge shall receive per diem
 
16 compensation for the days on which actual service is rendered
 
17 based on the monthly rate of compensation paid to a circuit court
 
18 judge.  For the purpose of determining per diem compensation in
 
19 this section, a month shall be deemed to consist of twenty-one
 
20 days."
 
21                             PART III
 
22      SECTION 8.  There is appropriated out of the general
 
23 revenues of the State of Hawaii the sum of $4,121,073 or so much
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1

 
 1 thereof as may be necessary for fiscal year 1999-2000 and the sum
 
 2 of $2,121,463 or so much thereof as may be necessary for fiscal
 
 3 year 2000-2001 for salaries in the judiciary.  The sum
 
 4 appropriated shall be expended by the judiciary for the purposes
 
 5 of this Act.
 
 6      SECTION 9.  If any provision of this Act, or the application
 
 7 thereof to any person or circumstance is held invalid, the
 
 8 invalidity does not affect other provisions or applications of
 
 9 the Act which can be given effect without the invalid provision
 
10 or application, and to this end the provisions of this Act are
 
11 severable.
 
12      SECTION 10.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 11.  This Act shall take effect on July 1, 1999;
 
15 provided that with respect to judges who are members of the
 
16 employees' retirement system and who have credited service as a
 
17 judge before July 1, 1999, the members' benefits shall not be
 
18 diminished nor impaired by this Act.