REPORT TITLE:
Judiciary; Salaries


DESCRIPTION:
Provides salary increases for judges.  Changes retirement
provisions for future judges. (SD2)

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


                   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 judges are
 
 2 significantly undercompensated.  Private law firm attorneys with
 
 3 an average of fifteen to twenty-five years of experience earned
 
 4 more than $135,000 while jurists with comparable years of
 
 5 experience earned between $81,780 and $94,780 annually.  In
 
 6 addition, the legislature finds that Hawaii is the only state in
 
 7 the nation that has not increased the salary of its judges during
 
 8 the last nine years.  Since 1990, forty-four of the remaining
 
 9 forty-nine states have granted their judges three or more raises.
 
10 In 1997 alone, twenty-nine states raised the salaries of their
 
11 general trial court justices.
 
12      The legislature further finds that Hawaii's failure to
 
13 adequately compensate its judges is adversely affecting the
 
14 quality of justice.  Insufficient compensation creates the risk
 
15 that judges will leave the bench, thus depriving the public of
 
16 the significant value of experienced jurists.  Since 1992, ten
 
17 seasoned and experienced judges have left Hawaii's bench due, in
 
18 part, to the lack of adequate compensation.  The legislature
 
19 notes that in recent months, another two seasoned justices have
 

 
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 1 announced their intention to leave the bench.  The Judicial
 
 2 Salary Commission believes that these departures will continue
 
 3 until compensation is adjusted.  Therefore, the legislature
 
 4 recognizes that an increase in judicial salaries is required in
 
 5 order to ensure that the most highly qualified individuals will
 
 6 be attracted to the state judiciary and will be able to serve and
 
 7 continue to serve without unreasonable economic hardship.
 
 8      The purpose of this Act is to:
 
 9      (1)  Amend the service retirement laws to correlate years on
 
10           the bench with retirement benefits; and
 
11      (2)  Increase judicial salaries by            per cent over
 
12           two years.
 
13                              PART I.
 
14      SECTION 2.  Section 88-73, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§88-73  Service retirement.  Retirement of a member on a
 
17 service retirement allowance shall be made by the board of
 
18 trustees or its designee as follows:
 
19      (1)  Any member who has at least five years of credited
 
20           service and who has attained age fifty-five or any
 
21           member who has at least twenty-five years of credited
 
22           service or any member who has at least ten years of
 
23           credited service, [including] which includes service as
 

 
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                                     H.B. NO.           H.D. 2
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 1           a judge before July 1, 1999, an elective officer, or
 
 2           [the chief clerk, assistant clerk, sergeant at arms, or
 
 3           assistant sergeant at arms of either house of the
 
 4           legislature] a legislative officer, may retire upon
 
 5           written application to the board specifying on what
 
 6           date, not less than thirty days nor more than ninety
 
 7           days subsequent to the execution and filing thereof,
 
 8           the member desires to be retired.  In the event of the
 
 9           death of a member after the date of the filing of the
 
10           member's written application to retire, the designated
 
11           beneficiary, otherwise the personal representative of
 
12           the member's estate, shall receive the allowance under
 
13           the option selected by the member which would have been
 
14           payable had the member retired, and the benefits paid
 
15           to the beneficiary or representative shall be computed
 
16           as though the member had died on or after the effective
 
17           date of the member's retirement;
 
18      (2)  Any member who first earned credited service as a judge
 
19           after June 30, 1999, may retire upon written
 
20           application to the board specifying on what date, not
 
21           less than thirty days nor more than ninety days
 
22           subsequent to the execution and filing thereof, the
 
23           member desires to be retired; provided that the member
 

 
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                                     H.B. NO.           H.D. 2
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 1           has at least five years of credited service and has
 
 2           attained age fifty-five or has at least twenty-five
 
 3           years of credited service.  In the event of the death
 
 4           of a member after the date of the filing of the
 
 5           member's written application to retire, the designated
 
 6           beneficiary, otherwise the personal representative of
 
 7           the member's estate, shall receive the allowance under
 
 8           the option selected by the member which would have been
 
 9           payable had the member retired, and the benefits paid
 
10           to the beneficiary or representative shall be computed
 
11           as though the member had died on or after the effective
 
12           date of the member's retirement;
 
13     [(2)] (3)  Any member of the legislature who attains age
 
14           sixty-five may retire and receive a service retirement
 
15           allowance although the member continues to fill the
 
16           elective position;
 
17     [(3)] (4)  For the purpose of computing or determining
 
18           benefits for an elective officer or judge, or any
 
19           beneficiary of either, the date upon which the elective
 
20           officer or judge elected to retire, as provided by
 
21           section 88-61(c), after attaining an allowance of
 
22           seventy-five per cent of average final compensation,
 
23           shall be used as the effective date of retirement;
 

 
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                                     H.B. NO.           H.D. 2
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 1           provided that the elective officer or judge may
 
 2           continue in active service, but shall not receive a
 
 3           retirement allowance until termination of active
 
 4           service; [however,] provided further that upon leaving
 
 5           active service the elective officer or judge shall
 
 6           receive the retirement allowance provided for in
 
 7           section 88-74, together with the post retirement
 
 8           allowances provided for in section 88-90, which post
 
 9           retirement allowances shall be computed from the date
 
10           of the election as though the elective officer or judge
 
11           had left active service on that day; and
 
12     [(4)] (5)  In the case of a class A or B member who also has
 
13           prior credited service under part VII, total credited
 
14           service as a class A, class B, and class C member shall
 
15           be used to determine the eligibility for retirement
 
16           allowance."
 
17      SECTION 3.  Section 88-74, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§88-74  Allowance on service retirement.  Upon retirement
 
20 from service, a member shall receive a retirement allowance as
 
21 follows:
 
22      (1)  If the member has attained age fifty-five, a retirement
 
23           allowance of two per cent of the member's average final
 

 
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                                     H.B. NO.           H.D. 2
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 1           compensation multiplied by the total number of years of
 
 2           the member's credited service as a class A and B
 
 3           member, excluding any credited service as [an] a judge,
 
 4           elective officer, or legislative officer, plus a
 
 5           retirement allowance of one and one-fourth per cent of
 
 6           the member's average final compensation multiplied by
 
 7           the total number of years of prior credited service as
 
 8           a class C member; provided that:
 
 9           (A)  After June 30, 1968, if the member has at least
 
10                ten years of credited service of which the last
 
11                five or more years prior to retirement is credited
 
12                service as a firefighter, police officer, or an
 
13                investigator of the department of the prosecuting
 
14                attorney;
 
15           (B)  After June 30, 1977, if the member has at least
 
16                ten years of credited service of which the last
 
17                five or more years prior to retirement is credited
 
18                service as a corrections officer;
 
19           (C)  After June 16, 1981, if the member has at least
 
20                ten years of credited service of which the last
 
21                five or more years prior to retirement is credited
 
22                service as an investigator of the department of
 
23                the attorney general;
 

 
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                                     H.B. NO.           H.D. 2
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 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
 

 
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                                     H.B. NO.           H.D. 2
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 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
 

 
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                                     H.B. NO.           H.D. 2
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 1           interest;
 
 2      (3)  If the member has credited service, as a judge, the
 
 3           member's retirement allowance shall be computed on the
 
 4           following basis:
 
 5           (A)  [Irrespective] For a member who has credited
 
 6                service as a judge before July 1, 1999,
 
 7                irrespective of age, for each year of credited
 
 8                service as a judge, three and one-half per cent of
 
 9                the member's average final compensation in
 
10                addition to an annuity that is the actuarial
 
11                equivalent of the member's accumulated
 
12                contributions allocable to the period of such
 
13                service; and
 
14          [(B)  For all other credited service, as provided in
 
15                paragraphs (1), (2) and (4).  No allowance shall
 
16                exceed seventy-five per cent of the member's
 
17                average final compensation.  If the allowance
 
18                exceeds this limit, it shall be adjusted by
 
19                reducing the annuity included in subparagraph (A),
 
20                and the portion of the accumulated contributions
 
21                specified in that subparagraph in excess of the
 
22                requirements of the reduced annuity shall be
 
23                returned to the member.
 

 
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                                     H.B. NO.           H.D. 2
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 1                The allowance for judges under this paragraph,
 
 2                together with the retirement allowance provided by
 
 3                the federal government for similar service, shall
 
 4                in no case exceed seventy-five per cent of the
 
 5                member's average final compensation; or]
 
 6           (B)  For a member who first earned credited service as
 
 7                a judge after June 30, 1999, for each year of
 
 8                credited service as a judge, three and one-half
 
 9                per cent of the member's average final
 
10                compensation in addition to an annuity that is the
 
11                actuarial equivalent of the member's accumulated
 
12                contributions allocable to the period of such
 
13                service.  If the member has not attained age
 
14                fifty-five, the member's retirement allowance
 
15                shall be computed as though the member had
 
16                attained age fifty-five, reduced in accordance
 
17                with factors of actuarial equivalence adopted by
 
18                the board upon the advice of the actuary; or
 
19           (C)  For a judge with other credited service, as
 
20                provided in paragraphs (1) and (2).  If the member
 
21                has not attained age fifty-five, the member's
 
22                retirement allowance shall be computed as though
 
23                the member had attained age fifty-five, reduced in
 

 
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                                     H.B. NO.           H.D. 2
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 1                accordance with factors of actuarial equivalence
 
 2                adopted by the board upon the advice of the
 
 3                actuary; or
 
 4           (D)  For a judge with credited service as an elective
 
 5                officer or as a legislative officer, as provided
 
 6                in paragraph (4).
 
 7           No allowance shall exceed seventy-five per cent of the
 
 8           member's average final compensation.  If the allowance
 
 9           exceeds this limit, it shall be adjusted by reducing
 
10           the annuity included in subparagraphs (A) and (B) and
 
11           the portion of the accumulated contributions specified
 
12           in the subparagraphs in excess of the requirements of
 
13           the reduced annuity shall be returned to the member.
 
14           The allowance for judges under this paragraph, together
 
15           with the retirement allowance provided by the federal
 
16           government for similar service, shall in no case exceed
 
17           seventy-five per cent of the member's average final
 
18           compensation; or
 
19     (4)   If the member has credited service as an elective
 
20           officer or as a legislative officer, the member's
 
21           retirement allowance shall be derived by adding the
 
22           allowances computed separately under subparagraphs (A),
 
23           (B), (C), and (D) as follows:
 

 
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                                     H.B. NO.           H.D. 2
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 1           (A)  Irrespective of age, for each year of credited
 
 2                service as an elective officer, three and one-half
 
 3                per cent of the member's average final
 
 4                compensation as computed under section
 
 5                88-81(d)(1), in addition to an annuity that is the
 
 6                actuarial equivalent of the member's accumulated
 
 7                contributions allocable to the period of service;
 
 8                and
 
 9           (B)  Irrespective of age, for each year of credited
 
10                service as a legislative officer, three and one-
 
11                half per cent of the member's average final
 
12                compensation as computed under section
 
13                88-81(d)(2), in addition to an annuity that is the
 
14                actuarial equivalent of the member's accumulated
 
15                contributions allocable to the period of service;
 
16           [(C) Irrespective of age, for each year of credited
 
17                service as a judge, three and one-half per cent of
 
18                the member's average final compensation as
 
19                computed under section 88-81(d)(3), in addition to
 
20                an annuity that is the actuarial equivalent of the
 
21                member's accumulated contributions allocable to
 
22                the period of service; and]
 
23           (C)  If the member has credited service as a judge, the
 

 
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                                     H.B. NO.           H.D. 2
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 1                member's retirement allowance shall be computed on
 
 2                the following basis:
 
 3                (i)  For a member who has credited service as a
 
 4                     judge before July 1, 1999, irrespective of
 
 5                     age, for each year of credited service as a
 
 6                     judge, three and one-half per cent of the
 
 7                     member's average final compensation as
 
 8                     computed under section 88-81(d)(3), in
 
 9                     addition to an annuity that is the actuarial
 
10                     equivalent of the member's accumulated
 
11                     contributions allocable to the period of such
 
12                     service; and
 
13                (ii) For a member who first earned credited
 
14                     service as a judge after June 30, 1999, and
 
15                     has attained the age of fifty-five, for each
 
16                     year of credited service as a judge, three
 
17                     and one-half per cent of the member's average
 
18                     final compensation as computed under section
 
19                     88-81(d)(3), in addition to an annuity that
 
20                     is the actuarial equivalent of the member's
 
21                     accumulated contributions allocable to the
 
22                     period of such service. If the member has not
 
23                     attained age fifty-five, the member's
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1                     retirement allowance shall be computed as
 
 2                     though the member had attained age fifty-
 
 3                     five, reduced in accordance with factors of
 
 4                     actuarial equivalence adopted by the board
 
 5                     upon the advice of the actuary; and
 
 6           (D)  For each year of credited service not included in
 
 7                subparagraph (A), (B), or (C), the average final
 
 8                compensation as computed under section 88-81(d)(4)
 
 9                shall be multiplied by two per cent, two and one-
 
10                half per cent, or one and one-quarter per cent, as
 
11                applicable to the credited service earned as a
 
12                class A, B, or C member, respectively.  If the
 
13                member has not attained age fifty-five, the
 
14                member's retirement allowance shall be computed as
 
15                though the member had attained age fifty-five,
 
16                reduced in accordance with factors of actuarial
 
17                equivalence adopted by the board upon the advice
 
18                of the actuary.
 
19           The total retirement allowance shall not exceed
 
20           seventy-five per cent of the member's highest average
 
21           final compensation calculated under section
 
22           88-81(d)(1), (2), (3), or (4).  If the allowance
 
23           exceeds this limit, it shall be adjusted by reducing
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1           any annuity accrued under subparagraphs (A), (B), and
 
 2           (C) and the portion of the accumulated contributions
 
 3           specified in these subparagraphs in excess of the
 
 4           requirements of the reduced annuity shall be returned
 
 5           to the member.  If a member has service credit as an
 
 6           elective officer or as a legislative officer in
 
 7           addition to service credit as a judge, then the
 
 8           retirement benefit calculation contained in this
 
 9           paragraph shall supersede the formula contained in
 
10           paragraph (3)."
 
11                             PART II.
 
12      SECTION 4.  Section 602-2, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§602-2 Salary, supreme court justices.  Effective
 
15 [January 1, 1989,] July 1, 1999, the salary of the chief justice
 
16 of the supreme court shall be [$90,699] $        a year and the
 
17 salary of each associate justice of the supreme court shall be
 
18 [$89,699] $        a year.  Effective [January 1, 1990,] July 1,
 
19 2000, the salary of the chief justice of the supreme court shall
 
20 be [$94,780] $        a year and the salary of each associate
 
21 justice of the supreme court shall be [$93,780] $        a year."
 
22      SECTION 5.  Section 602-52, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1      "§602-52  Salary.  Effective [January 1, 1989,] July 1,
 
 2 1999, the salary of the chief judge of the intermediate appellate
 
 3 court shall be [$87,199] $        a year and the salary of each
 
 4 associate judge shall be [$85,699] $        a year.  Effective
 
 5 [January 1, 1990,] July 1, 2000, the salary of the chief judge of
 
 6 the intermediate appellate court shall be [$91,280] $        a
 
 7 year and the salary of each associate judge shall be [$89,780]
 
 8 $        a year."
 
 9      SECTION 6.  Section 603-5, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§603-5 Salary of circuit court judges.  Effective
 
12 [January 1, 1989,] July 1, 1999, the salary of each circuit court
 
13 judge of the various circuit courts of the State shall be
 
14 [$82,699] $        a year.  Effective [January 1, 1990,] July 1,
 
15 2000, the salary of each circuit court judge of the various
 
16 circuit courts of the State shall be [$86,780] $        a year."
 
17      SECTION 7.  Section 604-2.5, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§604-2.5  Salary of district judges.  Effective [January 1,
 
20 1989,] July 1, 1999, the salary of each district court judge of
 
21 the various district courts of the State shall be [$77,699]
 
22 $        a year.  Effective [January 1, 1990,] July 1, 2000, the
 
23 salary of each district court judge of the various district
 
24 courts of the State shall be [$81,780] $        a year.
 

 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        

 
 1      Whenever the chief justice appoints a district court judge
 
 2 of any of the various district courts of the State to serve
 
 3 temporarily as a circuit court judge of any of the various
 
 4 circuit courts of the State, the judge shall receive per diem
 
 5 compensation for the days on which actual service is rendered
 
 6 based on the monthly rate of compensation paid to a circuit court
 
 7 judge.  For the purpose of determining per diem compensation in
 
 8 this section, a month shall be deemed to consist of twenty-one
 
 9 days."
 
10                             PART III.
 
11      SECTION 8.  There is appropriated out of the general
 
12 revenues of the State of Hawaii the sum of $         , or so much
 
13 thereof as may be necessary for fiscal year 1999-2000, and the
 
14 sum of $         , or so much thereof as may be necessary for
 
15 fiscal year 2000-2001, for salaries in the judiciary.  The sum
 
16 appropriated shall be expended by the judiciary for the purposes
 
17 of this Act.
 
18      SECTION 9.  If any provision of this Act, or the application
 
19 thereof to any person or circumstance is held invalid, the
 
20 invalidity does not affect other provisions or applications of
 
21 the Act which can be given effect without the invalid provision
 
22 or application, and to this end the provisions of this Act are
 

 
 
 
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                                     H.B. NO.           H.D. 2
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 1 severable.
 
 2      SECTION 10.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 11.  This Act shall take effect on July 1, 1999;
 
 5 provided that with respect to judges who are members of the
 
 6 employees' retirement system and who have credited service as a
 
 7 judge before July 1, 1999, the members' benefits shall not be
 
 8 diminished nor impaired by this Act.