REPORT TITLE:
DOCARE Officer/OHA Retirement


DESCRIPTION:
Allows conservation and resources law enforcement officers with
at least 25 years of service to retire without penalty.  Provides
retirement benefits for the Trustees of the Office of Hawaiian
Affairs.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        499
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.



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

 1                              PART I.
 
 2      SECTION 1.  Section 88-21, Hawaii Revised Statutes, is
 
 3 amended by adding a new definition to be appropriately inserted
 
 4 and to read as follows:
 
 5      ""Conservation and resources law enforcement officer":  any
 
 6 regularly employed member of the department of land and natural
 
 7 resources commissioned with full police powers whose principal
 
 8 duty is to enforce conservation laws and protect the State's
 
 9 natural resources."
 
10      SECTION 2.  Section 88-74, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§88-74  Allowance on service retirement.  Upon retirement
 
13 from service, a member shall receive a retirement allowance as
 
14 follows:
 
15      (1)  If the member has attained age fifty-five, a retirement
 
16           allowance of two per cent of the member's average final
 
17           compensation multiplied by the total number of years of
 
18           the member's credited service as a class A and B
 
19           member, excluding any credited service as an elective
 

 
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 1           officer or legislative officer, plus a retirement
 
 2           allowance of one and one-fourth per cent of the
 
 3           member's average final compensation multiplied by the
 
 4           total number of years of prior credited service as a
 
 5           class C member; provided that:
 
 6           (A)  After June 30, 1968, if the member has at least
 
 7                ten years of credited service of which the last
 
 8                five or more years prior to retirement is credited
 
 9                service as a firefighter, police officer, or an
 
10                investigator of the department of the prosecuting
 
11                attorney;
 
12           (B)  After June 30, 1977, 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 corrections officer;
 
16           (C)  After June 16, 1981, if the member has at least
 
17                ten years of credited service of which the last
 
18                five or more years prior to retirement is credited
 
19                service as an investigator of the department of
 
20                the attorney general;
 
21           (D)  After June 30, 1989, if the member has at least
 
22                ten years of credited service of which the last
 
23                five or more years prior to retirement is credited
 

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

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

 
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 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).  No allowance shall
 
13                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
 

 
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 1           seventy-five per cent of the member's average final
 
 2           compensation; or
 
 3      (4)  If the member has credited service as an elective
 
 4           officer or as a legislative officer, the member's
 
 5           retirement allowance shall be derived by adding the
 
 6           allowances computed separately under subparagraphs (A),
 
 7           (B), (C), and (D) as follows:
 
 8           (A)  Irrespective of age, for each year of credited
 
 9                service as an elective officer, three and one-half
 
10                per cent of the member's average final
 
11                compensation as computed under section
 
12                88-81(d)(1), in addition to an annuity that is the
 
13                actuarial equivalent of the member's accumulated
 
14                contributions allocable to the period of service;
 
15                and
 
16           (B)  Irrespective of age, for each year of credited
 
17                service as a legislative officer, three and one-
 
18                half per cent of the member's average final
 
19                compensation as computed under section
 
20                88-81(d)(2), in addition to an annuity that is the
 
21                actuarial equivalent of the member's accumulated
 
22                contributions allocable to the period of service;
 
23           (C)  Irrespective of age, for each year of credited
 

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

 
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 1           elective officer or as a legislative officer in
 
 2           addition to service credit as a judge, then the
 
 3           retirement benefit calculation contained in this
 
 4           paragraph shall supersede the formula contained in
 
 5           paragraph (3)."
 
 6      SECTION 3.  Section 88-281, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  If a member has at least twenty-five years of credited
 
 9 service as a sewer worker [or as a], water safety officer, or
 
10 conservation and resources law enforcement officers of the
 
11 department of land and natural resources, of which the last five
 
12 or more years prior to retirement is credited in such a capacity,
 
13 then the sewer worker [or], water safety officer, conservation
 
14 and resources law enforcement officers of the department of land
 
15 and natural resources, shall be eligible to receive a normal
 
16 retirement benefit unreduced for age."
 
17                             PART II.
 
18      SECTION 4.  The purpose of this Part is to allow the
 
19 trustees of the office of Hawaiian affairs to participate in and
 
20 receive the same benefits from the retirement benefit programs in
 
21 which other elected salaried officials of the State participate.
 
22      SECTION 5.  Chapter 88, Hawaii Revised Statutes, is amended
 
23 by adding a new section to be appropriately designated and to
 

 
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                                     H.B. NO.           H.D. 2
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 1 read as follows:
 
 2      "§88-    Service while a member of the board of trustees of
 
 3 the office of Hawaiian affairs.  Notwithstanding any provision of
 
 4 section 10-9 that may previously have precluded a member of the
 
 5 board of trustees of the office of Hawaiian affairs from
 
 6 participating as a member of the employees' retirement system,
 
 7 any member of the board of trustees of the office of Hawaiian
 
 8 affairs electing to become a member of the system, or any former
 
 9 member of the board of trustees of the office of Hawaiian affairs
 
10 who is otherwise a member of the system, shall be entitled to
 
11 claim full membership service credit as a class A member of the
 
12 employees' retirement system for service as a trustee during the
 
13 period July 1, 1993 through June 30, 1999; provided that the
 
14 trustee or member who was formerly a trustee during that period
 
15 requests credit for that service as membership service and pays
 
16 for that membership service in accordance with section 88-59."
 
17      SECTION 6.  Section 10-9, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§10-9  Salaries; benefit; expenses.  Members of the board:
 
20      (1)  Shall receive an annual salary which shall be paid:
 
21           (A)  Exclusively from revenue under section 10-13.5;
 
22                and
 
23           (B)  In equal amounts, beginning with the first pay
 

 
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                                     H.B. NO.           H.D. 2
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 1                period for state employees in November of the year
 
 2                the member of the board is elected.
 
 3           Effective July 1, 1993, and until the salary commission
 
 4           makes recommendations for salary, the salary of the
 
 5           chairperson of the board shall be $37,000 a year and
 
 6           the salary of other members of the board shall be
 
 7           $32,000 a year.  Any provision of law to the contrary
 
 8           notwithstanding, all members of the board shall be
 
 9           included in any benefit program generally applicable to
 
10           officers and employees of the State[ except for benefit
 
11           programs relating to retirements];
 
12      (2)  Shall be allowed transportation fares between islands
 
13           and abroad;
 
14      (3)  Shall be allowed personal expenses at the rates
 
15           specified by section 78-15, while attending board
 
16           meetings or while on official business as authorized by
 
17           the chairperson, when those board meetings or official
 
18           business shall require a member to leave the island
 
19           upon which the member resides; and
 
20      (4)  Shall be allowed a protocol allowance to cover expenses
 
21           incurred in the course of a member's duties and
 
22           responsibilities."
 
23      SECTION 7.  Section 87-5, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§87-5  Reimbursement for state contributions.  (a)  All
 
 3 state and county agencies having control of special funds shall
 
 4 reimburse the State for contributions made by the State pursuant
 
 5 to section 87-4 on account of the employees in the agencies whose
 
 6 compensation is paid in whole or part from the special funds.
 
 7 All state and county agencies receiving federal funds, which may
 
 8 be expended for the purpose of absorbing the contributions
 
 9 payable by the State to the fund, shall set aside a portion of
 
10 the federal funds sufficient to reimburse the State for
 
11 contributions made by the State pursuant to section 87-4 on
 
12 account of the employees in the agencies whose compensation is
 
13 paid in whole or part from federal funds.
 
14      (b)  The office of Hawaiian affairs shall reimburse the
 
15 State for contributions made by the State pursuant to section
 
16 87-4.5, 87-4.6, or 87-6 on account of a former member of the
 
17 board of trustees of the office of Hawaiian affairs who is a
 
18 retired member of the employees' retirement system.  All
 
19 reimbursements shall be paid exclusively from revenue under
 
20 section 13.5."
 
21      SECTION 8.  Section 88-21, Hawaii Revised Statutes, is
 
22 amended by amending the definition of "employee" to read as
 
23 follows:
 

 
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 1      ""Employee":  any employee or officer of the State or any
 
 2 county, including inspectors, principals, teachers and special
 
 3 teachers, regularly employed in the public schools, cafeteria
 
 4 managers and cafeteria workers, apprentices and on-the-job
 
 5 trainees whether or not supported in whole or in part by any
 
 6 federal grants, trustees of the office of Hawaiian affairs,
 
 7 members of the legislature and other elective officers,
 
 8 legislative employees who are employed on a full-time basis
 
 9 during and between sessions, probationary and provisional
 
10 employees, any employee of the educational nonprofit public
 
11 corporation as provided in section 88-49.7, per diem employees
 
12 and others who are made eligible by reason of their employment to
 
13 membership in the system by or pursuant to any other provision of
 
14 law, but excluding:
 
15      (1)  Per diem employees who elect to withdraw or not to
 
16           become members as provided in section 88-42;
 
17      (2)  Members of the legislature who do not elect to be
 
18           members as provided in section 88-42;
 
19      (3)  Persons excluded by rules of the board pursuant to
 
20           section 88-43.
 
21      An individual is an employee during the period of a leave of
 
22 absence if the individual is in service, as defined in this part,
 
23 during the period of the leave of absence and the board shall
 

 
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 1 determine who are employees within the meaning of this part."
 
 2      SECTION 9.  Section 88-42, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§88-42  Membership generally.  (a)  Except as otherwise
 
 5 provided in this part, all employees of the Territory or any
 
 6 county on July 1, 1945, shall be members of the system on such
 
 7 date, and all persons who thereafter enter or reenter the service
 
 8 of the State or any county shall become members at the time of
 
 9 their entry or reentry.
 
10      (b)  Per diem workers shall become eligible for membership
 
11 on January 1, 1952, and all persons who are employed as per diem
 
12 workers after December 31, 1951, shall become members of the
 
13 system.  Any person who was a per diem worker before January 1,
 
14 1952, shall not, so long as the person is employed as a per diem
 
15 worker, be required to become a member or to remain a member if
 
16 the person has elected before October 2, 1953, to withdraw as a
 
17 member.
 
18      (c)  Members of the legislature shall become eligible for
 
19 membership on July 1, 1951.  Any member of the legislature in
 
20 service on July 1, 1951, or thereafter entering or reentering the
 
21 legislature, may become a member upon the legislator's own
 
22 election.
 
23      (d)  Members of the board of trustees of the office of
 

 
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                                     H.B. NO.           H.D. 2
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 1 Hawaiian affairs shall become eligible for membership on July 1,
 
 2 1999.  Any member of the board of trustees in service on July 1,
 
 3 1999, or thereafter elected or reelected to the board of trustees
 
 4 of the office of Hawaiian affairs, may become a member upon the
 
 5 trustee's own election."
 
 6      SECTION 10.  Section 88-47, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (a) to read as follows:
 
 8      "(a)  There shall be three classes of members in the system
 
 9 to be known as class A, class B, and class C, defined as follows:
 
10      (1)  Class A shall consist of members covered by section
 
11           88-74(3)[,] and (4), those members whose salaries are
 
12           set forth in sections 26-52 and 26-53, and their county
 
13           counterparts, managing directors of administrative
 
14           assistant to the mayor, and other department heads,
 
15           including agency heads appointed by the mayor, first
 
16           deputies appointed by the county attorney and
 
17           prosecuting attorney, the county clerk and deputy
 
18           county clerk of each county, the administrative
 
19           director of the courts, the deputy administrative
 
20           director of the courts, the executive director of the
 
21           labor and industrial relations appeals board, the
 
22           executive director of the Hawaii labor relations board,
 
23           investigators of the department of the attorney
 

 
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                                     H.B. NO.           H.D. 2
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 1           general, narcotics enforcement investigators, water
 
 2           safety officers no making the election under section
 
 3           88-271, public safety investigations staff
 
 4           investigators, and those members in service prior to
 
 5           July 1, 1984, including those who are on approved leave
 
 6           of absence, who are covered by Title II of the Social
 
 7           Security Act on account of service creditable under
 
 8           this part.  This class shall consist of:
 
 9           (A)  All employees who enter membership after June 30,
 
10                1957, except employees in positions to which
 
11                coverage under Title II of the Social Security Act
 
12                is not extended;
 
13           (B)  All employees who were members on July 1, 1957,
 
14                who elected to be covered by the Social Security
 
15                Act; and
 
16           (C)  All former class A retirants who return to
 
17                employment after June 30, 1984, requiring the
 
18                retirant's active membership;
 
19      (2)  Class B shall consist of all members who are not class
 
20           A or class C members; and
 
21      (3)  Except for members described in [section 88-47(a)(1),]
 
22           paragraph (1), class C shall consist of all employees
 
23           in positions covered by Title II of the Social Security
 

 
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                                     H.B. NO.           H.D. 2
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 1           Act who:
 
 2           (A)  First enter service after June 30, 1984;
 
 3           (B)  Reenter service after June 30, 1984, without
 
 4                vested benefit status as provided in section 88-
 
 5                96(b);
 
 6           (C)  Make the election to become a class C members as
 
 7                provided in part VII; or
 
 8           (D)  Are former class C retirants who return to service
 
 9                requiring the retirant's active membership."
 
10      SECTION 11.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 12.  This Act shall take effect on July 1, 1999.