REPORT TITLE:
Government Pension Benefits


DESCRIPTION:
Allows a surviving spouse or reciprocal beneficiary of a police
officer, firefighter, deputy sheriff, or public safety officer to
remarry or enter into a new reciprocal beneficiary relationship
and to continue to receive pension and other retirement benefits
arising from their former spouse's employment.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3002
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
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.  Chapter 88, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§88-    Reinstatement of benefits.  A surviving spouse or
 
 5 reciprocal beneficiary whose benefits under this chapter arose
 
 6 from their spouse's or reciprocal beneficiary's membership
 
 7 through employment as a police officer, firefighter, deputy
 
 8 sheriff, or public safety officer, and whose pension or benefit
 
 9 was terminated by reason of remarriage or entry into a reciprocal
 
10 beneficiary relationship occurring subsequent to the death of the
 
11 member, may apply for reinstatement of the terminated pension or
 
12 benefit.  The level of reinstated pension or benefit payments
 
13 shall be the amount received by the surviving spouse or
 
14 reciprocal beneficiary on the date that the payment was
 
15 terminated, adjusted to reflect ad hoc and scheduled increases
 
16 from the date of termination to the date of reinstatement."
 
17      SECTION 2.  Section 88-1, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§88-1 Restrictions.  The provisions of this section shall
 

 
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 1 be applicable to every pension and to every recipient or
 
 2 beneficiary thereof, granted or provided for by any special act
 
 3 of the legislature (other than benefits, or the recipients
 
 4 thereof, payable to beneficiaries or retirants of the employees'
 
 5 retirement system under part II) whether the pension be payable
 
 6 by the State or by any county, or by any board, commission,
 
 7 bureau, department, or other agency thereof:
 
 8      (1)  No recipient or beneficiary shall be permitted to draw
 
 9           any pension, or any portion thereof, in excess of $50
 
10           per month, while the recipient or beneficiary is
 
11           holding any salaried position or office in, under, or
 
12           by authority of the United States, the State, or any
 
13           political subdivision thereof.  This paragraph shall
 
14           not apply to any recipient or beneficiary who is
 
15           elected to the legislature or to the council of any
 
16           county[.];
 
17      (2)  If the recipient or beneficiary is a surviving spouse
 
18           or reciprocal beneficiary, the pension so granted shall
 
19           cease when the surviving spouse or reciprocal
 
20           beneficiary remarries, marries, or enters into a new
 
21           reciprocal beneficiary relationship[.]; provided that
 
22           this paragraph shall not apply to a surviving spouse or
 
23           reciprocal beneficiary of a police officer,
 

 
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 1           firefighter, deputy sheriff, or public safety officer;
 
 2      (3)  Any pension payable to any minor shall cease when the
 
 3           minor reaches the age of eighteen years[.]; and
 
 4      (4)  If any recipient or beneficiary of a pension, having a
 
 5           spouse or reciprocal beneficiary at the time the
 
 6           pension was first granted to the recipient or
 
 7           beneficiary dies, then the spouse or reciprocal
 
 8           beneficiary, as long as the spouse or reciprocal
 
 9           beneficiary remains unmarried or not in a reciprocal
 
10           beneficiary relationship, shall be paid sixty per cent
 
11           of the amount of the pension payable to the
 
12           beneficiary[.]; provided that payments shall not be
 
13           terminated when a recipient police officer,
 
14           firefighter, deputy sheriff, or public safety officer
 
15           dies, and their surviving spouse or reciprocal
 
16           beneficiary remarries or enters into a reciprocal
 
17           beneficiary relationship."
 
18      SECTION 3.  Section 88-85, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§88-85  Accidental death benefit.  Upon the receipt of
 
21 proper proofs of a member's death by the board of trustees, there
 
22 shall be paid to the member's designated beneficiary or to the
 
23 member's estate the amount of the member's accumulated
 

 
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 1 contributions and if, upon the receipt of evidence or proofs that
 
 2 the death was the natural and proximate result of an accident
 
 3 occurring at some definite time and place while the member was in
 
 4 the actual performance of duty, or that the death was due to the
 
 5 result of some occupational hazard, the board shall decide that
 
 6 the death was the result of an accident in the performance of
 
 7 duty and not caused by wilful negligence on the part of the
 
 8 member, there shall be paid in lieu of the ordinary death
 
 9 benefits provided by the contributions of the State or county, a
 
10 pension of one-half of the average final compensation of the
 
11 member:
 
12      (1)  To the surviving spouse or reciprocal beneficiary of
 
13           the member to continue until the surviving spouse or
 
14           reciprocal beneficiary remarries, marries, or enters
 
15           into a new reciprocal beneficiary relationship;
 
16           provided that payments under this paragraph shall not
 
17           terminate when a surviving spouse or reciprocal
 
18           beneficiary of a police officer, firefighter, deputy
 
19           sheriff, or public safety officer, remarries or enters
 
20           into a reciprocal beneficiary relationship; or
 
21      (2)  If there be no surviving spouse or reciprocal
 
22           beneficiary, or if the surviving spouse or reciprocal
 
23           beneficiary dies or remarries, marries, or enters into
 

 
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 1           a new reciprocal beneficiary relationship before any
 
 2           child of the deceased member shall have attained the
 
 3           age of eighteen years, then to the deceased member's
 
 4           child or children under such age, divided in such
 
 5           manner as the board in its discretion shall determine,
 
 6           to continue as a joint and survivor pension of one-half
 
 7           of the deceased member's final compensation until every
 
 8           child dies, or attains such age; provided that payments
 
 9           shall be made to a surviving spouse or reciprocal
 
10           beneficiary of a police officer, firefighter, deputy
 
11           sheriff, or public safety officer, regardless of
 
12           whether the surviving spouse or reciprocal beneficiary
 
13           remarries, marries, or enters into a reciprocal
 
14           beneficiary relationship before any child of the
 
15           deceased member attains the age of eighteen years; or
 
16      (3)  If there is no surviving spouse or reciprocal
 
17           beneficiary or child under the age of eighteen years
 
18           surviving the deceased member, then to the deceased
 
19           member's dependent father or dependent mother, as the
 
20           deceased member shall have nominated by written
 
21           designation duly acknowledged and filed with the board,
 
22           or if there is no such nomination, then to the deceased
 
23           member's dependent father or to the deceased member's
 

 
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 1           dependent mother as the board, in its discretion, shall
 
 2           direct to continue for life.
 
 3      Notwithstanding any other law to the contrary, any condition
 
 4 of impairment of health caused by any disease of the heart,
 
 5 lungs, or respiratory system, resulting in death to a
 
 6 firefighter, police officer, or sewer worker, shall be presumed
 
 7 to have been suffered in the actual performance of duty at some
 
 8 definite time and place through no wilful negligence on the
 
 9 firefighter's, police officer's, or sewer worker's part, and as a
 
10 result of the inherent occupational hazard of exposure to and
 
11 inhalation of smoke, toxic gases, chemical fumes, and other toxic
 
12 vapors, unless the contrary be shown by competent evidence;
 
13 provided that such firefighter, police officer, or sewer worker
 
14 shall have passed a physical examination on entry into such
 
15 service or subsequent to such entry, which examination failed to
 
16 reveal any evidence of such condition."
 
17      SECTION 4.  Section 88-163, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§88-163  Death benefits:  funeral expenses; payments to
 
20 dependents.(a)  Upon the death of any member of the police
 
21 force, fire department, or band, as a result of any injury
 
22 received or disease contracted while in the performance of his
 
23 duty, or when entitled to a pension under this part or who has
 

 
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 1 been pensioned under this part there shall be paid, for funeral
 
 2 expenses, a sum not to exceed $100.  Should the deceased member
 
 3 leave a dependent widow or reciprocal beneficiary and a child or
 
 4 children under the age of eighteen years, then there shall be
 
 5 paid out of the system $50 per month to the widow until her death
 
 6 or remarriage or to the reciprocal beneficiary until death, or in
 
 7 the case of the marriage, or entry into a new reciprocal
 
 8 beneficiary relationship and $7.50 per month to the widow or
 
 9 reciprocal beneficiary for each child so long as the child shall
 
10 reside with the widow or reciprocal beneficiary or is supported
 
11 by the widow or reciprocal beneficiary[.]; provided that
 
12 termination under this subsection of payments upon remarriage,
 
13 marriage, or entry into a reciprocal beneficiary relationship
 
14 shall not apply where payments arise out of the deceased member's
 
15 employment with the police force or fire department.  Upon the
 
16 death of such widow or reciprocal beneficiary, or in the event
 
17 the deceased member leaves no widow or reciprocal beneficiary but
 
18 a child or children under the age of eighteen years, then there
 
19 shall be paid out of the system $50 per month to the child or
 
20 children of the deceased member under the age of eighteen years
 
21 with each child, if there be more than one, receiving an equal
 
22 share of the $50 per month payment plus $7.50 per month.  All
 
23 payments to a child of a deceased member provided for herein
 

 
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 1 shall cease when he or she arrives at the age of eighteen years.
 
 2      (b)  If any member of the police force, fire department, or
 
 3 band, dies not leaving a widow or reciprocal beneficiary, but
 
 4 leaving a father or mother dependent upon him, the father or
 
 5 mother (but not both) shall, upon satisfactory proof of
 
 6 dependency being made to the board of trustees receive from the
 
 7 system a sum not exceeding $50 per month.  The board shall
 
 8 determine whether the father or mother is dependent and how much
 
 9 of the amount herein provided for shall be paid to him or her.
 
10 If there be no widow or reciprocal beneficiary and no child and
 
11 no father or mother, but dependent brothers or sisters, then such
 
12 pension shall be paid to them in such sums as shall not exceed
 
13 the aggregate amount of $30 per month.  All pensions authorized
 
14 as provided in this subsection shall be subject to reduction by
 
15 the board of trustees whenever, in its judgment, circumstances
 
16 make it reasonable, fair, or necessary.  All pensions so reduced
 
17 may thereafter be restored or further reduced as the board may
 
18 deem best.
 
19      (c)  On the remarriage of any widow or reciprocal
 
20 beneficiary of a deceased member of the band, where the widow or
 
21 reciprocal beneficiary is entitled to the benefits of any sum, or
 
22 in the event of any father or mother, brothers or sisters ceasing
 
23 to be dependents then the payments to them shall cease."
 

 
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 1      SECTION 5.  Section 88-286, Hawaii Revised Statutes, is
 
 2 amended by amending subsections (b) and (c) to read as follows:
 
 3      "(b)  In the case of ordinary death, the death benefit shall
 
 4 be as follows:
 
 5      (1)  For the surviving spouse or reciprocal beneficiary, an
 
 6           allowance equal to one-half of the member's accrued
 
 7           normal retirement allowance unreduced for age, payable
 
 8           until remarriage, marriage, or entry into a new
 
 9           reciprocal beneficiary relationship[[],[]] as if the
 
10           member had retired the day prior to death; and for each
 
11           dependent child an allowance equal to ten per cent of
 
12           the member's accrued normal retirement allowance
 
13           unreduced for age, payable until the dependent child
 
14           attains age eighteen; provided that the aggregate death
 
15           benefits for all the dependent children shall not
 
16           exceed twenty per cent of the member's accrued normal
 
17           retirement allowance unreduced for age; provided
 
18           further that payments shall not be terminated when a
 
19           surviving spouse or reciprocal beneficiary of a police
 
20           officer, firefighter, deputy sheriff, or public safety
 
21           officer, remarries, marries, or enters into a
 
22           reciprocal beneficiary relationship; or
 
23      (2)  For the surviving spouse [[]or reciprocal
 

 
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 1           beneficiary[]], if the member was eligible for
 
 2           retirement at the time of death in service, and death
 
 3           occurred after June 30, 1990, an allowance that would
 
 4           have been payable as if the member had retired the day
 
 5           prior to death and had elected to receive a retirement
 
 6           allowance under option B of section 88-283; and
 
 7      (3)  If there is no surviving spouse or reciprocal
 
 8           beneficiary, each dependent child shall receive an
 
 9           allowance equal to twenty per cent of the member's
 
10           accrued normal retirement allowance unreduced for age,
 
11           payable until the dependent child attains age eighteen;
 
12           provided that the aggregate death benefits for all the
 
13           dependent children shall not exceed forty per cent of
 
14           the member's accrued normal retirement allowance
 
15           unreduced for age.
 
16      For the purpose of determining eligibility for the ordinary
 
17 death benefit, a year round school employee shall be considered
 
18 in service during the July and August preceding a transfer to a
 
19 traditional school schedule if the employee was in service for
 
20 the entire prior school year and has a contract for the upcoming
 
21 traditional school year.
 
22      (c)  In the case of accidental death, the death benefit
 
23 shall be as follows:
 

 
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 1      (1)  For the surviving spouse[,] or reciprocal beneficiary,
 
 2           an allowance equal to thirty per cent of the member's
 
 3           average final compensation, payable until remarriage;
 
 4           provided that payments shall continue to a surviving
 
 5           spouse or reciprocal beneficiary of a police officer,
 
 6           firefighter, deputy sheriff, or public safety officer,
 
 7           who remarries or enters into a reciprocal beneficiary
 
 8           relationship;
 
 9      (2)  If there is a surviving spouse or reciprocal
 
10           beneficiary, each dependent child under eighteen shall
 
11           receive an allowance equal to the greater of:
 
12           (A)  Ten per cent of the member's accrued normal
 
13                retirement allowance, unreduced for age; provided
 
14                that the aggregate death benefits for all the
 
15                dependent children shall not exceed twenty per
 
16                cent of the member's accrued normal retirement
 
17                allowance unreduced for age; or
 
18           (B)  Three per cent of the member's average final
 
19                compensation; provided that the aggregate death
 
20                benefits for all the dependent children shall not
 
21                exceed six per cent of the member's average final
 
22                compensation.
 
23           The death benefit under this paragraph shall be payable
 

 
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 1           to each dependent child until the dependent child
 
 2           attains age eighteen; and
 
 3      (3)  If there is no surviving spouse or reciprocal
 
 4           beneficiary, each dependent child under eighteen shall
 
 5           receive an allowance equal to the greater of:
 
 6           (A)  Twenty per cent of the member's accrued normal
 
 7                retirement allowance, unreduced for age; provided
 
 8                that the aggregate death benefits for all the
 
 9                dependent children shall not exceed forty per cent
 
10                of the member's accrued normal retirement
 
11                allowance unreduced for age; or
 
12           (B)  Six per cent of the member's average final
 
13                compensation; provided that the aggregate death
 
14                benefits for all the dependent children shall not
 
15                exceed twelve per cent of the member's average
 
16                final compensation.
 
17           The death benefit under this paragraph shall be payable
 
18           to each dependent child until the dependent child
 
19           attains age eighteen."
 
20      SECTION 6.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 7.  This Act shall take effect upon its approval.