REPORT TITLE:
Judiciary


DESCRIPTION:
Increases judicial salaries.  Eliminates early retirement
provision for judges, including provision allowing judges to
retire whenever the allowance reaches 75 per cent of the member's
average final compensation.  Protects accrued benefits of judges
and former judges.  (HB20 HD1)

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


                   A  BILL  FOR  AN  ACT

RELATING TO THE JUDICIARY.



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

 1                              PART I
 
 2      SECTION 1.  Section 602-2, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§602-2 Salary[,] of supreme court justices.  [Effective
 
 5 January 1, 1989, the salary of the chief justice of the supreme
 
 6 court shall be $90,699 a year and the salary of each associate
 
 7 justice of the supreme court shall be $89,699 a year.  Effective
 
 8 January 1, 1990, the salary of the chief justice of the supreme
 
 9 court shall be $94,780 a year and the salary of each associate
 
10 justice of the supreme court shall be $93,780 a year.] (a)  The
 
11 salary of the chief justice of the supreme court shall be as
 
12 follows:
 
13      (1)  Effective July 1, 1999, the salary shall be $108,049 a
 
14           year; and
 
15      (2)  Effective July 1, 2000, the salary shall be $120,370 a
 
16           year.
 
17      (b)  The salary of each associate justice of the supreme
 
18 court shall be as follows:
 
19      (1)  Effective July 1, 1999, the salary shall be $106,909 a
 
20           year; and
 

 
Page 2                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (2)  Effective July 1, 2000, the salary shall be $119,100 a
 
 2           year."
 
 3      SECTION 2.  Section 602-52, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§602-52  Salary[.  Effective January 1, 1989, the salary of
 
 6 the chief judge of the intermediate appellate court shall be
 
 7 $87,199 a year and the salary of each associate judge shall be
 
 8 $85,699 a year.  Effective January 1, 1990, the salary of the
 
 9 chief judge of the intermediate appellate court shall be $91,280
 
10 a year and the salary of each associate judge shall be $89,780 a
 
11 year.]  of intermediate appellate court judges.  (a)  The salary
 
12 of the chief judge of the intermediate appellate court shall be
 
13 as follows:
 
14      (1)  Effective July 1, 1999, the salary shall be $104,059 a
 
15           year; and
 
16      (2)  Effective July 1, 2000, the salary shall be $115,925 a
 
17           year.
 
18      (b)  The salary of each associate judge of the intermediate
 
19 appellate court shall be as follows:
 
20      (1)  Effective July 1, 1999, the salary shall be $102,349 a
 
21           year; and
 
22      (2)  Effective July 1, 2000, the salary shall be $114,020 a
 
23           year."
 

 
Page 3                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 3.  Section 603-5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§603-5 Salary of circuit court judges.  [Effective
 
 4 January 1, 1989, the salary of each circuit court judge of the
 
 5 various circuit courts of the State shall be $82,699 a year.
 
 6 Effective January 1, 1990, the salary of each circuit court judge
 
 7 of the various circuit courts of the State shall be $86,780 a
 
 8 year.]  The salary of each circuit court judge of the various
 
 9 circuit courts of the State shall be as follows:
 
10      (1)  Effective July 1, 1999, the salary shall be $98,929 a
 
11           year; and
 
12      (2)  Effective July 1, 2000, the salary shall be $110,210 a
 
13           year."
 
14      SECTION 4.  Section 604-2.5, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§604-2.5  Salary of district judges.  [Effective January 1,
 
17 1989, the salary of each district court judge of the various
 
18 district courts of the State shall be $77,699 a year.  Effective
 
19 January 1, 1990, the salary of each district court judge of the
 
20 various district courts of the State shall be $81,780 a year.]
 
21 (a)  The salary of each district court judge of the various
 
22 district courts of the State shall be as follows:
 

 
 
 
Page 4                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (1)  Effective July 1, 1999, the salary shall be $93,229 a
 
 2           year; and
 
 3      (2)  Effective July 1, 2000, the salary shall be $103,860 a
 
 4           year.
 
 5      (b)  Whenever the chief justice appoints a district court
 
 6 judge of any of the various district courts of the State to serve
 
 7 temporarily as a circuit court judge of any of the various
 
 8 circuit courts of the State, the judge shall receive per diem
 
 9 compensation for the days on which actual service is rendered
 
10 based on the monthly rate of compensation paid to a circuit court
 
11 judge.  For the purpose of determining per diem compensation in
 
12 this section, a month shall be deemed to consist of twenty-one
 
13 days."
 
14      SECTION 5.  There is appropriated out of the general
 
15 revenues of the State of Hawaii the sum of $          or so much
 
16 thereof as may be necessary for fiscal year 1999-2000 and the sum
 
17 of $          or so much thereof as may be necessary for fiscal
 
18 year 2000-2001 for judicial salaries.
 
19      The sums appropriated shall be expended by the judiciary for
 
20 the purposes of this Act.
 
21                              PART II
 
22      SECTION 6.  Section 88-61, Hawaii Revised Statutes, is
 
23 amended by amending subsection (c) to read as follows:
 

 
Page 5                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      "(c)  The membership of [an]:
 
 2      (1)  An elective officer; [or judge]
 
 3      (2)  A member who first enters service as a judge before
 
 4           July 1, 1999;
 
 5      (3)  A member who reenters service as a judge before July 1,
 
 6           1999, without vested benefit status as provided in
 
 7           section 88-96(b); or
 
 8      (4)  A retirant who returns to service as a judge before
 
 9           July 1, 1999,
 
10 in the system may be terminated upon election of the member to
 
11 retire whenever the allowance for such member reaches seventy-
 
12 five per cent of the member's average final compensation.  The
 
13 member's right to receive the retirement allowance prescribed in
 
14 section 88-74 after the member's future separation from service
 
15 as provided in section 88-73 shall vest on the date of the
 
16 election.  Upon the date of the election, the member shall be
 
17 entitled to receive the portion of the accumulated contributions,
 
18 if any, which would be required to be returned to the member
 
19 under section 88-74(3)(B) as if the member's retirement allowance
 
20 had commenced on that date, and after the date of the election
 
21 the member shall not be allowed or required to make any future
 
22 contributions."
 

 
 
 
Page 6                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
Page 7                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           to the beneficiary or representative shall be computed
 
 2           as though the member had died on or after the effective
 
 3           date of the member's retirement;
 
 4      (2)  Notwithstanding paragraph (1), any member who first
 
 5           enters service as a judge after June 30, 1999, any
 
 6           member who reenters service as a judge after June 30,
 
 7           1999, without vested benefit status as provided in
 
 8           section 88-96(b), or any retirant who returns to
 
 9           service as a judge after June 30, 1999, may retire upon
 
10           written application to the board specifying on what
 
11           date, not less than thirty days nor more than ninety
 
12           days subsequent to the execution and filing thereof,
 
13           the member desires to be retired; provided that the
 
14           member has at least five years of credited service and
 
15           has attained age fifty-five or has at least twenty-five
 
16           years of credited service.  In the event of the death
 
17           of a member after the date of the filing of the
 
18           member's written application to retire, the designated
 
19           beneficiary, otherwise the personal representative of
 
20           the member's estate, shall receive the allowance under
 
21           the option selected by the member which would have been
 
22           payable had the member retired, and the benefits paid
 
23           to the beneficiary or representative shall be computed
 

 
Page 8                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           as though the member had died on or after the effective
 
 2           date of the member's retirement;
 
 3     [(2)] (3)  Any member of the legislature who attains age
 
 4           sixty-five may retire and receive a service retirement
 
 5           allowance although the member continues to fill the
 
 6           elective position;
 
 7     [(3)] (4)  For the purpose of computing or determining
 
 8           benefits for [an];
 
 9           (A)  An elective officer [or judge,];
 
10           (B)  A member who first enters service as a judge
 
11                before July 1, 1999;
 
12           (C)  A member who reenters service as a judge before
 
13                July 1, 1999, without vested benefit status as
 
14                provided in section 88-96(b);
 
15           (D)  A retirant who returns to service as a judge
 
16                before July 1, 1999; or [any]
 
17           (E)  Any beneficiary of [either,] (A) through (D),
 
18           the date upon which the elective officer or judge
 
19           elected to retire, as provided by section 88-61(c),
 
20           after attaining an allowance of seventy-five per cent
 
21           of average final compensation, shall be used as the
 
22           effective date of retirement; provided that the
 
23           elective officer or judge may continue in active
 

 
Page 9                                                     20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           service, but shall not receive a retirement allowance
 
 2           until termination of active service; [however,]
 
 3           provided further that upon leaving active service the
 
 4           elective officer or judge shall receive the retirement
 
 5           allowance provided for in section 88-74, together with
 
 6           the post retirement allowances provided for in section
 
 7           88-90, which post retirement allowances shall be
 
 8           computed from the date of the election as though the
 
 9           elective officer or judge had left active service on
 
10           that day; and
 
11     [(4)] (5)  In the case of a class A or B member who also has
 
12           prior credited service under part VII, total credited
 
13           service as a class A, class B, and class C member shall
 
14           be used to determine the eligibility for retirement
 
15           allowance."
 
16      SECTION 8.  Section 88-74, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§88-74  Allowance on service retirement.  Upon retirement
 
19 from service, a member shall receive a retirement allowance as
 
20 follows:
 
21      (1)  If the member has attained age fifty-five, a retirement
 
22           allowance of two per cent of the member's average final
 
23           compensation multiplied by the total number of years of
 

 
Page 10                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           the member's credited service as a class A and B
 
 2           member, excluding any credited service as an elective
 
 3           officer or legislative officer, plus a retirement
 
 4           allowance of one and one-fourth per cent of the
 
 5           member's average final compensation multiplied by the
 
 6           total number of years of prior credited service as a
 
 7           class C member; provided that:
 
 8           (A)  After June 30, 1968, if the member has at least
 
 9                ten years of credited service of which the last
 
10                five or more years prior to retirement is credited
 
11                service as a firefighter, police officer, or an
 
12                investigator of the department of the prosecuting
 
13                attorney;
 
14           (B)  After June 30, 1977, if the member has at least
 
15                ten years of credited service of which the last
 
16                five or more years prior to retirement is credited
 
17                service as a corrections officer;
 
18           (C)  After June 16, 1981, if the member has at least
 
19                ten years of credited service of which the last
 
20                five or more years prior to retirement is credited
 
21                service as an investigator of the department of
 
22                the attorney general;
 

 
 
 
Page 11                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           (D)  After June 30, 1989, if the member has at least
 
 2                ten years of credited service of which the last
 
 3                five or more years prior to retirement is credited
 
 4                service as a narcotics enforcement investigator; 
 
 5           (E)  After December 31, 1993, if the member has at
 
 6                least ten years of credited service of which the
 
 7                last five or more years prior to retirement is
 
 8                credited service as a water safety officer; and
 
 9           (F)  After June 30, 1994, if the member has at least
 
10                ten years of credited service, of which the last
 
11                five or more years prior to retirement are
 
12                credited service as a public safety
 
13                [investigative] investigations staff investigator;
 
14           then for each year of service as a firefighter, police
 
15           officer, corrections officer, investigator of the
 
16           department of the prosecuting attorney, investigator of
 
17           the department of the attorney general, narcotics
 
18           enforcement investigator, water safety officer, or
 
19           public safety investigations staff investigator, the
 
20           retirement allowance shall be two and one-half per cent
 
21           of the member's average final compensation.  The
 
22           maximum retirement allowance for those members shall
 
23           not exceed eighty per cent of the member's average
 

 
Page 12                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           final compensation.  If the member has not attained age
 
 2           fifty-five, the member's retirement allowance shall be
 
 3           computed as though the member had attained age fifty-
 
 4           five, reduced in accordance with factors of actuarial
 
 5           equivalence adopted by the board upon the advice of the
 
 6           actuary; provided that no reduction shall be made if
 
 7           the member has at least twenty-five years of credited
 
 8           service as a firefighter, police officer, corrections
 
 9           officer, investigator of the department of the
 
10           prosecuting attorney, investigator of the department of
 
11           the attorney general, narcotics enforcement
 
12           investigator, public safety investigations staff
 
13           investigator, sewer worker, or water safety officer, of
 
14           which the last five or more years prior to retirement
 
15           is credited service in such capacities;
 
16      (2)  If the member has made voluntary additional
 
17           contributions for the purchase of an additional annuity
 
18           and has not applied for a refund as permitted by
 
19           section 88-72, the member may accept the refund at the
 
20           time of retirement or, in lieu thereof, receive in
 
21           addition to the retirement allowance provided in
 
22           paragraph (1), an annuity that is the actuarial
 
23           equivalent of the additional contributions with regular
 
24           interest;
 

 
Page 13                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
Page 14                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           seventy-five per cent of the member's average final
 
 2           compensation; or
 
 3      (4)  Notwithstanding paragraph (3), if the person has
 
 4           credited service as a judge and the person first
 
 5           entered service as a judge after June 30, 1999, the
 
 6           person reentered service as a judge after June 30,
 
 7           1999, without vested benefit status as provided in
 
 8           section 88-96(b), or the person is a retirant who
 
 9           returns to service as a judge after June 30, 1999, the
 
10           person's retirement allowance shall be computed on the
 
11           following basis:
 
12           (A)  If the member has attained age fifty-five, for
 
13                each year of credited service as a judge, three
 
14                and one-half per cent of the member's average
 
15                final compensation in addition to an annuity that
 
16                is the actuarial equivalent of the member's
 
17                accumulated contributions allocable to the period
 
18                of such service; and
 
19           (B)  For all other credited service, as provided in
 
20                paragraphs (1), (2), and (5).
 
21     [(4)] (5)  If the member has credited service as an elective
 
22           officer or as a legislative officer, the member's
 
23           retirement allowance shall be derived by adding the
 

 
Page 15                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           allowances computed separately under subparagraphs (A),
 
 2           (B), (C), and (D) as follows:
 
 3           (A)  Irrespective of age, for each year of credited
 
 4                service as an elective officer, three and one-half
 
 5                per cent of the member's average final
 
 6                compensation as computed under section
 
 7                88-81(d)(1), in addition to an annuity that is the
 
 8                actuarial equivalent of the member's accumulated
 
 9                contributions allocable to the period of service;
 
10                [and]
 
11           (B)  Irrespective of age, for each year of credited
 
12                service as a legislative officer, three and one-
 
13                half per cent of the member's average final
 
14                compensation as computed under section
 
15                88-81(d)(2), in addition to an annuity that is the
 
16                actuarial equivalent of the member's accumulated
 
17                contributions allocable to the period of service;
 
18           (C)  [Irrespective of age, for] 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 as computed under section 88-
 
22                81(d)(3), in addition to an annuity that is the
 
23                actuarial equivalent of the member's accumulated
 

 
Page 16                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1                contributions allocable to the period of service;
 
 2                and
 
 3           (D)  For each year of credited service not included in
 
 4                subparagraph (A), (B), or (C), the average final
 
 5                compensation as computed under section 88-81(d)(4)
 
 6                shall be multiplied by two per cent, two and one-
 
 7                half per cent, or one and one-quarter per cent, as
 
 8                applicable to the credited service earned as a
 
 9                class A, B, or C member, respectively.
 
10           The total retirement allowance shall not exceed
 
11           seventy-five per cent of the member's highest average
 
12           final compensation calculated under section
 
13           88-81(d)(1), (2), (3), or (4).  If the allowance
 
14           exceeds this limit, it shall be adjusted by reducing
 
15           any annuity accrued under subparagraphs (A), (B), and
 
16           (C) and the portion of the accumulated contributions
 
17           specified in these subparagraphs in excess of the
 
18           requirements of the reduced annuity shall be returned
 
19           to the member.  If a member has service credit as an
 
20           elective officer or as a legislative officer in
 
21           addition to service credit as a judge, then the
 
22           retirement benefit calculation contained in this
 
23           paragraph shall supersede the formula contained in
 
24           paragraph (3)."
 

 
Page 17                                                    20
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1                             PART III
 
 2      SECTION 9.  If any provision of this Act, or the application
 
 3 thereof to any person or circumstance is held invalid, the
 
 4 invalidity does not affect other provisions or applications of
 
 5 the Act which can be given effect without the invalid provision
 
 6 or application, and to this end the provisions of this Act are
 
 7 severable.
 
 8      SECTION 10.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 11.  This Act shall take effect on July 1, 1999;
 
11 provided that:
 
12      (1)  With respect to current judges who are members of the
 
13           employees' retirement system as of June 30, 1999, the
 
14           member's accrued benefits shall not be diminished or
 
15           impaired by this Act; and
 
16      (2)  With respect to other individuals who are or were
 
17           members of the employees' retirement system and who
 
18           accrued benefits as judges before July 1, 1999, the
 
19           member's accrued benefits shall not be diminished or
 
20           impaired by this Act.