REPORT TITLE:
ERS


DESCRIPTION:
Gives current deputy sheriffs of the Department of Public Safety
and conservation and resources law enforcement officers of the
Department of Land and Natural Resources the option of converting
from class C to class A members of the Employees' Retirement
System (ERS).  Allows current deputy sheriffs and conservation
and resources law enforcement officers to retire after 25 years
of service irrespective of age.  Requires deputy sheriffs and
conservation and resources law enforcement officers to be class A
members. (SB1544 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1544
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                H.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      SECTION 1.  Section 88-21, Hawaii Revised Statutes, is
 
 2 amended by adding two new definitions to be appropriately
 
 3 inserted and to read as follows:
 
 4      ""Conservation and resources law enforcement officer":  any
 
 5 regularly employed member of the department of land and natural
 
 6 resources commissioned with full police powers whose principal
 
 7 duty is to enforce conservation laws and protect the State's
 
 8 natural resources.
 
 9      "Deputy sheriff":  any regularly employed member of the
 
10 department of public safety whose principal duty is to perform
 
11 the duties specified in section 26-14.6(f)."
 
12      SECTION 2.  Section 88-45, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§88-45  Employee contributions.  After June 30, 1988, each
 
15 class A and class B member shall contribute seven and eight-
 
16 tenths per cent of the member's compensation to the annuity
 
17 savings fund; provided that after June 30, 1989, all
 
18 firefighters, police officers, corrections officers,
 
19 investigators of the departments of the prosecuting attorney and
 
20 of the attorney general, narcotics enforcement investigators,
 

 
Page 2                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1 water safety officers not making the election under section
 
 2 88-271, deputy sheriffs of the department of public safety,
 
 3 conservation and resources law enforcement officers of the
 
 4 department of land and natural resources, and public safety
 
 5 investigations staff investigators shall contribute twelve and
 
 6 two-tenths per cent of their compensation to the annuity savings
 
 7 fund for service in that capacity." 
 
 8      SECTION 3.  Section 88-47, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (a) to read as follows:
 
10      "(a)  There shall be three classes of members in the system
 
11 to be known as class A, class B, and class C, defined as follows:
 
12      (1)  Class A shall consist of members covered by section
 
13           88-74(3), those members whose salaries are set forth in
 
14           sections 26-52 and 26-53, and their county
 
15           counterparts, managing directors or administrative
 
16           assistant to the mayor, and other department heads,
 
17           including agency heads appointed by the mayor, first
 
18           deputies appointed by the county attorney and
 
19           prosecuting attorney, the county clerk and deputy
 
20           county clerk of each county, the administrative
 
21           director of the courts, the deputy administrative
 
22           director of the courts, the executive director of the
 
23           labor and industrial relations appeals board, the
 

 
Page 3                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1           executive director of the Hawaii labor relations board,
 
 2           investigators of the department of the attorney
 
 3           general, narcotics enforcement investigators, water
 
 4           safety officers not making the election under section
 
 5           88-271, public safety investigations staff
 
 6           investigators, deputy sheriffs of the department of
 
 7           public safety, conservation and resources law
 
 8           enforcement officers of the department of land and
 
 9           natural resources, and those members in service prior
 
10           to July 1, 1984, including those who are on approved
 
11           leave of absence, who are covered by Title II of the
 
12           Social Security Act on account of service creditable
 
13           under this part.  This class shall consist of:
 
14           (A)  All employees who enter membership after June 30,
 
15                1957, except employees in positions to which
 
16                coverage under Title II of the Social Security Act
 
17                is not extended;
 
18           (B)  All employees who were members on July 1, 1957,
 
19                who elected to be covered by the Social Security
 
20                Act; and
 
21           (C)  All former class A retirants who return to
 
22                employment after June 30, 1984, requiring the
 
23                retirant's active membership;
 

 
Page 4                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1      (2)  Class B shall consist of all members who are not class
 
 2           A or class C members; and
 
 3      (3)  Except for members described in [section 88-47(a)(1),]
 
 4           subsection (a)(1), class C shall consist of all
 
 5           employees in positions covered by Title II of the
 
 6           Social Security Act who:
 
 7           (A)  First enter service after June 30, 1984;
 
 8           (B)  Reenter service after June 30, 1984, without
 
 9                vested benefit status as provided in section
 
10                88-96(b);
 
11           (C)  Make the election to become a class C member as
 
12                provided in part VII; or
 
13           (D)  Are former class C retirants who return to service
 
14                requiring the retirant's active membership."
 
15      SECTION 4.  Section 88-74, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§88-74  Allowance on service retirement.  Upon retirement
 
18 from service, a member shall receive a retirement allowance as
 
19 follows:
 
20      (1)  If the member has attained age fifty-five, a retirement
 
21           allowance of two per cent of the member's average final
 
22           compensation multiplied by the total number of years of
 
23           the member's credited service as a class A [and] or
 

 
Page 5                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

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

 
Page 6                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1                five or more years prior to retirement is credited
 
 2                service as a narcotics enforcement investigator; 
 
 3           (E)  After December 31, 1993, if the member has at
 
 4                least ten years of credited service of which the
 
 5                last five or more years prior to retirement is
 
 6                credited service as a water safety officer; [and]
 
 7           (F)  After June 30, 1994, if the member has at least
 
 8                ten years of credited service, of which the last
 
 9                five or more years prior to retirement are
 
10                credited service as a public safety
 
11                [investigative] investigations staff investigator;
 
12                and
 
13           (G)  After June 30, 1999, if the member has at least
 
14                ten years of credited service of which the last
 
15                five or more years prior to retirement is credited
 
16                service as a deputy sheriff of the department of
 
17                public safety or as a conservation and resources
 
18                law enforcement officer of the department of land
 
19                and natural resources;
 
20           then for each year of service as a firefighter, police
 
21           officer, corrections officer, investigator of the
 
22           department of the prosecuting attorney, investigator of
 
23           the department of the attorney general, narcotics
 

 
Page 7                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

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

 
Page 8                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

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

 
Page 9                                                     1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

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

 
Page 10                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1                compensation as computed under section
 
 2                88-81(d)(1), in addition to an annuity that is the
 
 3                actuarial equivalent of the member's accumulated
 
 4                contributions allocable to the period of service;
 
 5                and
 
 6           (B)  Irrespective of age, for each year of credited
 
 7                service as a legislative officer, three and one-
 
 8                half per cent of the member's average final
 
 9                compensation as computed under section
 
10                88-81(d)(2), in addition to an annuity that is the
 
11                actuarial equivalent of the member's accumulated
 
12                contributions allocable to the period of service;
 
13           (C)  Irrespective of age, for each year of credited
 
14                service as a judge, three and one-half per cent of
 
15                the member's average final compensation as
 
16                computed under section 88-81(d)(3), in addition to
 
17                an annuity that is the actuarial equivalent of the
 
18                member's accumulated contributions allocable to
 
19                the period of service; and
 
20           (D)  For each year of credited service not included in
 
21                subparagraph (A), (B), or (C), the average final
 
22                compensation as computed under section 88-81(d)(4)
 
23                shall be multiplied by two per cent, two and one-
 

 
Page 11                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1                half per cent, or one and one-quarter per cent, as
 
 2                applicable to the credited service earned as a
 
 3                class A, B, or C member, respectively.
 
 4           The total retirement allowance shall not exceed
 
 5           seventy-five per cent of the member's highest average
 
 6           final compensation calculated under section
 
 7           88-81(d)(1), (2), (3), or (4).  If the allowance
 
 8           exceeds this limit, it shall be adjusted by reducing
 
 9           any annuity accrued under subparagraphs (A), (B), and
 
10           (C) and the portion of the accumulated contributions
 
11           specified in these subparagraphs in excess of the
 
12           requirements of the reduced annuity shall be returned
 
13           to the member.  If a member has service credit as an
 
14           elective officer or as a legislative officer in
 
15           addition to service credit as a judge, then the
 
16           retirement benefit calculation contained in this
 
17           paragraph shall supersede the formula contained in
 
18           paragraph (3)."
 
19      SECTION 5.  (a)  Notwithstanding any other law to the
 
20 contrary, deputy sheriffs of the department of public safety and
 
21 conservation and resources law enforcement officers of the
 
22 department of land and natural resources who are in service prior
 
23 to the effective date of this Act may convert to class A
 
24 membership; provided that their membership service before July 1,
 
25 1999, shall remain at class C level.  An election form indicating
 

 
Page 12                                                    1544
                                     S.B. NO.           S.D. 2
                                                        H.D. 1
                                                        

 
 1 the option selected shall be filed with the board of trustees
 
 2 prior to December 1, 1999, and those members converting to class
 
 3 A shall arrange for additional deductions or lump sum payments
 
 4 pursuant to sections 88-45 and 88-59, Hawaii Revised Statutes, to
 
 5 commence by January 1, 2000.  The election filed with the board
 
 6 of trustees shall be irrevocable.
 
 7      (b)  All deputy sheriffs of the department of public safety
 
 8 and conservation and resources law enforcement officers of the
 
 9 department of land and natural resources hired after June 30,
 
10 1999, shall be designated class A members of the employees'
 
11 retirement system.
 
12      (c)  Notwithstanding any other law to the contrary, deputy
 
13 sheriffs of the department of public safety and conservation and
 
14 resources law enforcement officers in the department of land and
 
15 natural resources who are in service on June 30, 1999, may retire
 
16 after twenty-five years of service irrespective of age.
 
17      SECTION 6.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 7.  This Act shall take effect on July 1, 1999.