REPORT TITLE:
ERS; Pensioners' Bonus


DESCRIPTION:
Reenacts law providing for pensioners' retirement bonus adopted
in 1990.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3012
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO PENSIONERS' BONUS.



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

 1      SECTION 1.  Section 88-11, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§88-11  Bonus; amounts available.  Except as herein
 
 4 provided, every pension payable under the employees' retirement
 
 5 system or payable pursuant to any law of the State, or by any
 
 6 county or independent public board or commission, shall be
 
 7 increased by a bonus for each month as follows:
 
 8      (1)  Effective July 1, 1976, $77.82 per month to those
 
 9           retirants and pensioners who had, before July 1, 1966,
 
10           ten or more years of service; provided that any member
 
11           who is retired because of physical or mental disability
 
12           due to any injury or disease incurred while in the
 
13           performance of the member's duty as a public employee
 
14           shall be entitled to receive the bonus payment without
 
15           meeting the minimum service requirement;
 
16      (2)  Effective July 1, 1976, $31.12 per month additional to
 
17           the above bonus to those retirants or pensioners who
 
18           retired before July 1, 1945;
 
19      (3)  Effective July 1, 1976, $31.12 per month additional to
 
20           the above bonus or bonuses to those retirants or
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           pensioners who have had twenty-one or more years of
 
 2           service;
 
 3      (4)  Effective July 1, 1976, if the pension as increased by
 
 4           the bonus or bonuses does not equal $202.32 per month,
 
 5           the bonus shall be further increased by such sum, not
 
 6           in excess of $31.12, as will bring the total of the
 
 7           pension and bonus to $202.32 per month; provided that
 
 8           where the dependents of a deceased pensioner are
 
 9           receiving pension by reasons of the pensioner's death,
 
10           the total only of all amounts paid to the dependents
 
11           shall be so increased, and the increase herein shall be
 
12           shared by them in proportion to the respective amount
 
13           of pension receivable by them exclusive of this
 
14           increase;
 
15      (5)  In the case of any retirement allowance for service
 
16           commencing after June 30, 1965, pursuant to paragraph
 
17           (1) or (3) of section 88-74, the only bonus payable
 
18           shall be in the amount by which the benefit payable
 
19           under the paragraphs is less than the bonus as set
 
20           forth above; provided that in no case shall a person
 
21           who retires after June 30, 1965, receive less under the
 
22           service and ordinary disability retirement system
 
23           benefits, plus the bonus payable under this section
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           than the person would have received if paragraph (5)
 
 2           had not been enacted;
 
 3      (6)  Any provisions of this section to the contrary
 
 4           notwithstanding, there shall be paid to every person
 
 5           who on June 30, 1965, was receiving a retirement
 
 6           allowance from the system or other pension payable
 
 7           under or pursuant to the law of the State or by any
 
 8           county or independent board or commission, a special
 
 9           cost of living bonus which shall be paid in the
 
10           following manner:
 
11           (A)  On January 1, 1966, seven and one-half per cent of
 
12                the retirement allowance or pension;
 
13           (B)  On July 1, 1969, an additional ten per cent of the
 
14                retirement allowance or pension;
 
15           (C)  On July 1, 1970, an additional ten per cent of the
 
16                retirement allowance or pension;
 
17           (D)  On July 1, 1973, an additional five and one-half
 
18                per cent of the retirement allowance or pension;
 
19           (E)  On July 1, 1976, an additional eight per cent of
 
20                the retirement allowance or pension;
 
21      (7)  Any provision of this section to the contrary
 
22           notwithstanding, there shall be paid to every person
 
23           who retired between July 1, 1965, and June 30, 1970,
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           and who, on June 30, 1974, was receiving a retirement
 
 2           allowance from the system or other pension payable
 
 3           under or pursuant to the law of the State or by any
 
 4           county or independent board or commission, a special
 
 5           cost of living bonus which shall be paid in the
 
 6           following manner:
 
 7           (A)  On July 1, 1974, five and one-half per cent of the
 
 8                retirement allowance or pension;
 
 9           (B)  On July 1, 1976, an additional eight per cent of
 
10                the retirement allowance or pension;
 
11      (8)  Any other provision to the contrary notwithstanding,
 
12           effective July 1, 1980, there shall be paid to every
 
13           person who retired prior to July 1, 1975, and who on
 
14           June 30, 1980, was receiving a retirement allowance
 
15           from the system or other pension payable under or
 
16           pursuant to the law of the State or by any county or
 
17           independent board or commission, a special cost of
 
18           living bonus which shall be paid in the following
 
19           manner:
 
20           (A)  $4.50 a month for each year of the retirant's or
 
21                pensioner's credited service, if the person
 
22                retired prior to July 1, 1965;
 
23           (B)  $2.50 a month for each year of the retirant's or
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1                pensioner's credited service if the person retired
 
 2                after June 30, 1965, but prior to July 1, 1970;
 
 3                and
 
 4           (C)  $1.00 a month for each year of the retirant's or
 
 5                pensioner's credited service if the person retired
 
 6                after June 30, 1970, but prior to July 1, 1975;
 
 7           provided that if the retirant or pensioner had retired,
 
 8           returned to service, and again retired, the person's
 
 9           latest retirement date shall be considered as the
 
10           person's date of retirement; provided further that no
 
11           special cost of living bonus as provided for in this
 
12           paragraph shall be paid to those retirants or
 
13           pensioners who have eight or less years of credited
 
14           service;
 
15      (9)  Any other provision to the contrary notwithstanding,
 
16           effective July 1, 1984, there shall be paid to every
 
17           person who retired after June 30, 1970, but prior to
 
18           July 1, 1979, and who on June 30, 1984, was receiving a
 
19           retirement allowance from the system or other pension
 
20           payable under or pursuant to the law of the State or by
 
21           any county or independent board or commission, a
 
22           special cost of living bonus which shall be paid in the
 
23           following manner:
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           (A)  $.50 a month for each year of the retirant's or
 
 2                pensioner's credited service if the person retired
 
 3                after June 30, 1970, but prior to July 1, 1975;
 
 4           (B)  $1.00 a month for each year of the retirant's or
 
 5                pensioner's credited service if the person retired
 
 6                after June 30, 1975, but prior to July 1, 1979;
 
 7           provided that if the retirant or pensioner had retired,
 
 8           returned to service, and again retired, the person's
 
 9           latest retirement date shall be considered as the
 
10           person's date of retirement; provided further that no
 
11           special cost of living bonus as provided for in this
 
12           paragraph shall be paid to those retirants or
 
13           pensioners who have eight or less years of credited
 
14           service; and
 
15     (10)  Any other provision to the contrary notwithstanding,
 
16           effective July 1, 1988, there shall be paid to every
 
17           person who retired prior to July 1, 1982, and who on
 
18           June 30, 1988, was receiving a retirement allowance
 
19           from the system or other pension payable under or
 
20           pursuant to the law of the State or by any county or
 
21           independent board or commission, a special cost of
 
22           living bonus which shall be paid in the following
 
23           manner:
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           (A)  $3.50 a month for each year of the retirant's or
 
 2                pensioner's credited service, if the person
 
 3                retired prior to July 1, 1965;
 
 4           (B)  $2.50 a month for each year of the retirant's or
 
 5                pensioner's credited service if the person retired
 
 6                after June 30, 1965, but prior to July 1, 1970;
 
 7           (C)  $1.50 a month for each year of the retirant's or
 
 8                pensioner's credited service if the person retired
 
 9                after June 30, 1970, but prior to July 1, 1975;
 
10                and
 
11           (D)  $1.00 a month for each year of the retirant's or
 
12                pensioner's credited service if the person retired
 
13                after June 30, 1975, but prior to July 1, 1982;
 
14           provided that if the retirant or pensioner had retired,
 
15           returned to service, and again retired, the person's
 
16           latest retirement date shall be considered as the
 
17           person's date of retirement; provided further that no
 
18           special cost of living bonus as provided for in this
 
19           paragraph shall be paid to those retirants or
 
20           pensioners who have ten or less years of credited
 
21           service[.];
 
22     (11)  Any other provision to the contrary notwithstanding,
 
23           effective July 1, 2000, and each July 1, thereafter,
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           bonuses shall be paid to retirants and pensioners with
 
 2           ten or more years of service or to their beneficiaries
 
 3           who are receiving a monthly benefit from the system, in
 
 4           accordance with this section; provided that the
 
 5           requirement of ten or more years of service shall not
 
 6           apply in the case of a person who retires with less
 
 7           than ten years of service because of a service
 
 8           connected disability; and provided further that if the
 
 9           retirant or pensioner is currently receiving a larger
 
10           bonus than what would be payable under this section,
 
11           the retirant or pensioner shall continue to receive the
 
12           bonus amount received on June 30, 2000, until the
 
13           retirant's or pensioner's bonus calculated under this
 
14           section exceeds the June 30, 2000, bonus amount at
 
15           which time the difference between the June 30, 2000,
 
16           bonus and the bonus calculated under this section would
 
17           be payable.
 
18                The bonus amounts payable under this section shall
 
19           be based upon years of retirement and shall be a
 
20           cumulative amount to include all previous bonuses and
 
21           shall not exceed:
 
22           (A)  $1.25 for each year of the retirant's or
 
23                pensioner's credited service if the retirant or
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1                pensioner has been retired a minimum of five years
 
 2                by July 1 in the year in which the bonus is
 
 3                effective;
 
 4           (B)  $2.50 for each year of the retirant's or
 
 5                pensioner's credited service if the retirant or
 
 6                pensioner has been retired a minimum of ten years
 
 7                by July 1 in the year in which the bonus is
 
 8                effective;
 
 9           (C)  $4.50 for each year of the retirant's or
 
10                pensioner's credited service if the retirant or
 
11                pensioner has been retired a minimum of fifteen
 
12                years by July 1 in the year in which the bonus is
 
13                effective;
 
14           (D)  $6.00 for each year of the retirant's or
 
15                pensioner's credited service if the retirant or
 
16                pensioner has been retired a minimum of twenty
 
17                years by July 1 in the year in which the bonus is
 
18                effective;
 
19           (E)  $8.75 for each year of the retirant's or
 
20                pensioner's credited service if the retirant or
 
21                pensioner has been retired a minimum of twenty-
 
22                five years by July 1 in the year in which the
 
23                bonus is effective;
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           (F)  $10.50 for each year of the retirant's or
 
 2                pensioner's credited service if the retirant or
 
 3                pensioner has been retired a minimum of thirty
 
 4                years by July 1 in the year in which the bonus is
 
 5                effective;
 
 6           (G)  Any other provision to the contrary
 
 7                notwithstanding, any retirant or pensioner with
 
 8                ten or more years of service who on July 1 of the
 
 9                year in which the bonus is being calculated has
 
10                been retired a minimum of twenty years and whose
 
11                current bonus amount exceeds the maximum specified
 
12                in this section, shall nevertheless receive a
 
13                pension increase of $1.25 for each year of
 
14                credited service.
 
15      For the purposes of this section, if the retirant or
 
16 pensioner had retired, returned to service, and again retired,
 
17 the latest retirement date shall be considered as the date of
 
18 retirement."
 
19      SECTION 2.  There is appropriated out of the general
 
20 revenues of the State of Hawaii the sum of $           , or so
 
21 much thereof as may be necessary for fiscal year 2000-2001, to
 
22 extend the employees' retirement system pensioners' bonus.
 
23      SECTION 3.  The sum appropriated shall be expended by the
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1 department of budget and finance for the purposes of this Act.
 
 2      SECTION 4.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 5.  This Act shall take effect on July 1, 2000.
 
 5 
 
 6                           INTRODUCED BY:  _______________________