HOUSE OF REPRESENTATIVES

H.B. NO.

1644

THIRTY-SECOND LEGISLATURE, 2024

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:

 

     SECTION 1.  Section 88-21.5, Hawaii Revised Statutes, is amended to read as follows:

     "§88-21.5  Compensation.  (a)  For a member who became a member before July 1, 2012:

     (1)  Unless a different meaning is plainly required by context, "compensation" as used in this part means:

          (A)  Normal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed;

          (B)  Overtime, differentials, and supplementary payments;

          (C)  Bonuses and lump sum salary supplements;

          (D)  Elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended; and

          (E)  Retroactive payments of those purposes and nature authorized in subparagraphs (A) through (D), and certified as compensation pursuant to section 88-64;

     (2)  Bonuses and lump sum salary supplements shall be deemed earned when payable; provided that bonuses or lump sum salary supplements in excess of one-twelfth of compensation for the twelve months before the month in which the bonus or lump sum salary supplement is payable, exclusive of overtime, bonuses, and lump sum salary supplements, shall be deemed earned:

          (A)  During the period agreed-upon by the employer and employee, but in any event over a period of no less than twelve months; or

          (B)  In the absence of an agreement between the employer and the employee, over the twelve months before the date on which the bonus or lump sum salary supplement is payable; and

     (3)  Retroactive payments shall be deemed earned when it would have been earned, as determined by the system pursuant to section 88-64.

     (b)  For a member who becomes a member after June 30, 2012, unless a different meaning is plainly required by context, "compensation" as used in this part:

     (1)  Means:

          (A)  The normal periodic payments of money for service, the right to which accrues on an hourly, daily, monthly, or annual basis;

          (B)  Shortage differentials;

          (C)  Elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended; [and]

          (D)  Twelve-month differentials for employees of the department of education; and

          (E)  Overtime; provided that overtime shall only be considered compensation when an employee has been directed by their supervisor or an appropriate authority to work more than their normal hours of service to perform specific duties and tasks to serve the immediate well-being of the public due to a natural disaster under an active emergency proclamation issued pursuant to chapter 127A; and

     (2)  Shall not include any other additional or extra payments to an employee or officer, [including overtime,] supplementary payments, bonuses, lump sum salary supplements, allowances, or differentials, including differentials for stand-by duty, temporary unusual work hazards, compression differentials, or temporary differentials, except for those expressly authorized pursuant to subsection (b)(1)(B), (b)(1)(C), and (b)(1)(D).

     (c)  For a member who becomes a member after June 30, 2012, and who engages in overtime, as defined as compensation in subsection (b)(1)(E), on or after July 1, 2024, shall have the overtime included in the member's pension calculations; provided that overtime worked prior to July 1, 2024, shall not be included in the member's pension calculations."

     SECTION 2.  Statuary material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

 


 

Report Title:

Employees' Retirement System; Overtime; Compensation; Definition

 

Description:

For members of the Employees' Retirement System hired after June 30, 2012, includes overtime in the definition of compensation when an employee has been directed by their supervisor or an appropriate authority to work more than their normal hours of service to perform specific duties and tasks to serve the immediate well-being of the public due to a natural disaster under an active emergency proclamation.  Specifies that overtime worked prior to July 1, 2024, shall not be included in pension calculations.  Effective 7/1/3000.  (HD1)

 

 

 

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