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THE SENATE |
S.B. NO. |
2141 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ALLOWANCE ON SERVICE RETIREMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Notwithstanding section 88-99, Hawaii Revised Statutes, the purpose of this Act is to include certain law enforcement administrators and employees of the department of law enforcement as class A members of the pension and retirement systems and to provide guidance for the computation of retirement benefits similar to police officers.
SECTION 2. Section 88-21, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
""Sheriff"
means a person who serves as the administrator of the sheriff division of the
department of law enforcement.
"Sheriff division investigator" means a person regularly employed by the department of law enforcement with police powers who hold the personnel class specification of investigator."
SECTION 3. Section 88-45, Hawaii Revised Statutes, is amended to read as follows:
"§88-45
Employee contributions.
After June 30, 1988, each class A and class B member shall contribute [seven
and eight-tenths] 7.8 per cent of the member's compensation to the annuity
savings fund; provided that after June 30, 1989, all firefighters, police officers,
corrections officers, investigators of the departments of the prosecuting attorney
and of the attorney general, narcotics enforcement investigators, water safety officers
not making the election under section 88‑271, [and] the director
of law enforcement, deputy directors of the department of law enforcement, law
enforcement investigations staff investigators, the sheriff, and sheriff
division investigators shall contribute [twelve and two-tenths] 12.2
per cent of their compensation to the annuity savings fund for service in that capacity;
provided further that each class A and class B member who becomes a member after
June 30, 2012, shall contribute [nine and eight-tenths] 9.8 per cent
of the member's compensation to the annuity savings fund; provided further that
all firefighters, police officers, corrections officers, investigators of the departments
of the prosecuting attorney and of the attorney general, narcotics enforcement investigators,
[and] the director of law enforcement, deputy directors of the
department of law enforcement, law enforcement investigations staff investigators,
the sheriff, and sheriff division investigators who become members after June
30, 2012, shall contribute [fourteen and two-tenths] 14.2 per cent
of their compensation to the annuity savings fund for service in that capacity."
SECTION 4. Section 88-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There shall be four classes of members in the system to be known as class A, class B, class C, and class H, defined as follows:
(1) Class A shall consist of:
(A) Members first employed as judges before July 1, 2031, elected officials, and legislative officers;
(B) Investigators of the department of the attorney general, narcotics enforcement investigators, water safety officers not making the election under section 88-271, and law enforcement investigations staff investigators;
(C) Those members in service [prior to]
before July 1, 1984, including those who are on approved leave of
absence, not making the election to become a class C member as provided in part
VII or to become a class H member as provided in part VIII;
(D) The following members in service [prior
to] before July 1, 2006, including those who are on approved leave
of absence, not making the election to become a class H member as provided in
part VIII:
(i) Members whose salaries are set forth in sections 26-52 and 26-53 and their county counterparts, managing directors or an administrative assistant to the mayor, other county department heads, and agency heads appointed and subject to removal by the mayor;
(ii) First deputies appointed by the county attorney and prosecuting attorney;
(iii) The county clerk and deputy county clerk of each county;
(iv) The directors of the offices of council
services of the
(v) The administrative director of the courts;
(vi) The deputy administrative director of the courts;
(vii) The executive officer of the labor and industrial relations appeals board; and
(viii) The executive officer of the Hawaii labor relations board;
(E) All former class A retirants who return
to employment after June 30, 1984, requiring the retirant's active membership; [and]
(F) All former class B retirants who return to employment requiring the retirant's active membership, except for:
(i) Former retirants who return in the positions of police officer or firefighter;
(ii) Former retirants who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and
(iii) Former retirants who were in positions to which coverage under Title II of the Social Security Act was not extended who entered membership after June 30, 1957, but before January 1, 2004; and
(G) The following members of the department of law enforcement,
effective July 1, 2026:
(i) The director of law enforcement;
(ii) The deputy directors
of the department of law enforcement;
(iii) The sheriff; and
(iv) Sheriff
division investigators;
(2) Class B shall consist of:
(A) Police officers and firefighters, including former retirants who return to service in such capacity;
(B) All employees, including former retirants, who were members on July 1, 1957, who elected not to be covered by the Social Security Act; and
(C) All employees, including former retirants, in positions to which coverage under Title II of the Social Security Act is not extended, who enter membership after June 30, 1957, but before January 1, 2004, not making the election to become a class H member as provided in part VIII;
(3) Except for members described in paragraphs (1) and (2), class C shall consist of all employees, not making the election to become a class H member as provided in part VIII, who:
(A) First enter service after June 30, 1984, but before July 1, 2006;
(B) Reenter service after June 30, 1984, but before July 1, 2006, without vested benefit status as provided in section 88-96(b);
(C) Make the election to become a class C member as provided in part VII; or
(D) Are former class C retirants who return to service requiring the retirant's active membership; and
(4) Except for members described in paragraphs (1) and (2), class H shall consist of all employees who:
(A) First enter service after June 30, 2006;
(B) Reenter service after June 30, 2006, without vested benefit status as provided in section 88‑96(b);
(C) Make the election to become a class H member as provided in part VIII;
(D) Are former class H retirants who return to service requiring the retirant's active membership; or
(E) Are first employed as a judge after June 30, 2031."
SECTION 5. Section 88-74, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(b)
If a member, who became a member before July 1, 2012, has attained age
fifty-five, the member's maximum retirement allowance shall be two per cent of
the member's average final compensation multiplied by the total number of years
of the member's credited service as a class A and class B member, excluding any
credited service as a judge, elective officer, or legislative officer, plus a
retirement allowance of [one and one-fourth] 1.25 per cent of the
member's average final compensation multiplied by the total number of years of
prior credited service as a class C member, plus a retirement allowance of two
per cent of the member's average final compensation multiplied by the total
number of years of prior credited service as a class H member; provided that:
(1) After June 30, 1968, if the member has at
least ten years of credited service of which the last five or more years [prior
to] before retirement is credited service as a firefighter, police
officer, or [an] investigator of the department of the prosecuting
attorney;
(2) After
June 30, 1977, if the member has at least ten years of credited service of
which the last five or more years [prior to] before retirement is
credited service as a corrections officer;
(3) After
June 16, 1981, if the member has at least ten years of credited service of
which the last five or more years [prior to] before retirement is
credited service as an investigator of the department of the attorney general;
(4) After
June 30, 1989, if the member has at least ten years of credited service of
which the last five or more years [prior to] before retirement is
credited service as a narcotics enforcement investigator;
(5) After
December 31, 1993, if the member has at least ten years of credited service of
which the last five or more years [prior to] before retirement is
credited service as a water safety officer;
(6) After
June 30, 1994, if the member has at least ten years of credited service, of
which the last five or more years [prior to] before retirement
are credited service as a law enforcement investigations staff investigator;
(7) After June 30, 2002, if the member:
(A) Has at least ten years of credited service as a firefighter;
(B) Is deemed permanently medically disqualified due to a [service
related] service-related disability to be a firefighter by the
employer's physician; and
(C) Continues employment in a class A or B position other than a
firefighter; [and]
(8) After June 30, 2004, if the member:
(A) Has at least ten years of credited service as a police officer;
(B) Is deemed permanently medically disqualified due to a [service
related] service-related disability to be a police officer by the
employer's physician; and
(C) Continues employment in a class A or B position other than a police officer; and
(9) After June 30, 2026, if the member
has at least ten years of credited service, of which the last five or more
years before retirement are credited service as the director
of law enforcement, deputy director of the department of law enforcement, the
sheriff, or sheriff division investigator,
then for
each year of service as a firefighter, police officer, corrections officer,
investigator of the department of the prosecuting attorney, investigator of the
department of the attorney general, narcotics enforcement investigator, water
safety officer, [or] director of law enforcement, deputy director of
the department of law enforcement, law enforcement investigations staff
investigator, the sheriff, or sheriff division investigator, the retirement allowance shall be [two and
one-half] 2.5 per cent of the member's average final
compensation. The maximum retirement
allowance for those members shall not exceed eighty per cent of the member's
average final compensation. If the
member has not attained age fifty-five, the member's retirement allowance shall
be computed as though the member had attained age fifty-five, reduced for age
as provided in subsection (e)."
2. By amending subsections (e) and (f) to read:
"(e) Except as provided in subsections (b), (c), and (d), if a member, who became a member before July 1, 2012, has not attained age fifty-five at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age fifty-five, as follows:
(1) 0.4166 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus
(2) 0.3333 per cent for each month below age fifty and above age forty-four and eleven months; plus
(3) 0.2500 per cent for each month below age forty-five and above age thirty-nine and eleven months; plus
(4) 0.1666 per cent for each month below age forty;
provided
that no reduction shall be made if the member has at least twenty-five years of
credited service as a firefighter, police officer, corrections officer,
investigator of the department of the prosecuting attorney, investigator of the
department of the attorney general, narcotics enforcement investigator, director
of law enforcement, deputy director of the department of law enforcement, law
enforcement investigations staff investigator, the sheriff, sheriff division
investigator, sewer worker, or water safety officer, of which the last five
or more years [prior to] before retirement is credited service in
these capacities.
(f) If a member, who becomes a member
after June 30, 2012, has attained age sixty, the member's maximum retirement
allowance shall be [one and three-fourths] 1.75 per cent of the
member's average final compensation multiplied by the total number of years of
the member's credited service as a class A and class B member, excluding any
credited service as a judge, elective officer, or legislative officer, plus a
retirement allowance of [one and one-fourth] 1.25 per cent of the
member's average final compensation multiplied by the total number of years of
prior credited service as a class C member, plus a retirement allowance of [one
and three-fourths] 1.75 per cent of the member's average final
compensation multiplied by the total number of years of prior credited service
as a class H member; provided that:
(1) If the member has at least ten years of
credited service of which the last five or more years [prior to] before
retirement is credited service as a firefighter, police officer, or an
investigator of the department of the prosecuting attorney;
(2) If the member has at least ten years of
credited service of which the last five or more years [prior to] before
retirement is credited service as a corrections officer;
(3) If the member has at least ten years of
credited service of which the last five or more years [prior to] before
retirement is credited service as an investigator of the department of the
attorney general;
(4) If the member has at least ten years of
credited service of which the last five or more years [prior to] before
retirement is credited service as a narcotics enforcement investigator;
(5) If the member has at least ten years of
credited service, of which the last five or more years [prior to] before
retirement is credited service as a law enforcement investigations staff
investigator;
(6) If the member:
(A) Has at least ten years of credited service as a firefighter;
(B) Is deemed permanently medically
disqualified due to a [service related] service-related disability
to be a firefighter by the employer's physician; and
(C) Continues employment in a class A or
class B position other than a firefighter; [and]
(7) If the member:
(A) Has at least ten years of credited service as a police officer;
(B) Is deemed permanently medically
disqualified due to a [service related] service-related disability
to be a police officer by the employer's physician; and
(C) Continues employment in a class A or
class B position other than a police officer[,]; and
(8) After June 30, 2026, if the member has at least ten years of credited service, of which the last five or more years before retirement is credited service as a director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator,
then for
each year of service as a firefighter, police officer, corrections officer,
investigator of the department of the prosecuting attorney, investigator of the
department of the attorney general, narcotics enforcement investigator, [or]
director of law enforcement, deputy director of the department of law
enforcement, law enforcement investigations staff investigator, the
sheriff, or sheriff division investigator, the retirement allowance shall be [two and
one-fourth]
2.25 per cent of the member's average final compensation. The maximum retirement allowance for
those members shall not exceed eighty per cent of the member's average final compensation. If the member has not attained age sixty, the
member's retirement allowance shall be computed as though the member had
attained age sixty, reduced for age as provided in subsection (i)."
3. By amending subsection (i) to read:
"(i) Except as provided in subsections (f), (g), and (h), if a member, who becomes a member after June 30, 2012, has not attained age sixty at the date of retirement, the member's retirement allowance shall be reduced, for each month the member's age at the date of retirement is below age sixty, as follows:
(1) 0.4166 per cent for each month below age sixty and above age fifty-four and eleven months; plus
(2) 0.3333 per cent for each month below age fifty-five and above age forty-nine and eleven months; plus
(3) 0.2500 per cent for each month below age fifty and above age forty-four and eleven months; plus
(4) 0.1666 per cent for each month below age forty-five;
provided
that no reduction shall be made if the member has attained the age of
fifty-five and has at least twenty-five years of credited service as a
firefighter, police officer, corrections officer, investigator of the
department of the prosecuting attorney, investigator of the department of the
attorney general, narcotics enforcement investigator, director of law
enforcement, deputy director of the department of law enforcement, law
enforcement investigations staff investigator, the sheriff, sheriff division
investigator, sewer worker, water safety officer, or emergency medical
technician, of which the last five or more years [prior to] before
retirement is credited service in these capacities."
SECTION 6. Section 88-122, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read
"(a) Based on regular interest and such mortality and other tables as are adopted by the board of trustees, the actuary engaged by the board, on the basis of successive annual actuarial valuations, shall determine the employer's normal cost and accrued liability contributions for each fiscal year beginning July 1 separately for the following two groups of employees:
(1) Police
officers, firefighters, [and] corrections officers[; and], the director of law enforcement, deputy directors of
the department of law enforcement, the sheriff, law enforcement investigations
staff investigators, and sheriff division investigators; and
(2) All other employees."
2. By amending subsection (e) to read:
"(e) Commencing with fiscal year 2005-2006 and
each subsequent fiscal year until fiscal year 2007-2008, the employer
contributions for normal cost and accrued liability for each of the two groups
of employees in subsection (a) shall be based on [fifteen and three-fourths]
15.75 per cent of the member's compensation for police officers,
firefighters, and corrections officers and [thirteen and three-fourths] 13.75
per cent of the member's compensation for all other employees. Commencing with fiscal year 2008-2009 and
each subsequent fiscal year until fiscal year 2011-2012, the employer
contributions for normal cost and accrued liability for each of the two groups
of employees in subsection (a) shall be based on [nineteen and seven-tenths]
19.7 per cent of the member's compensation for police officers,
firefighters, and corrections officers and fifteen per cent of the member's
compensation for all other employees. In
fiscal year 2012-2013, the employer contributions for normal cost and accrued
liability for each of the two groups of employees in subsection (a) shall be
based on twenty-two per cent of the member's compensation for police officers,
firefighters, and corrections officers and [fifteen and one-half] 15.5
per cent of the member's compensation for all other employees. In fiscal year 2013-2014, the employer
contributions for normal cost and accrued liability for each of the two groups
of employees in subsection (a) shall be based on twenty-three per cent of the
member's compensation for police officers, firefighters, and corrections
officers and sixteen per cent of the member's compensation for all other
employees. In fiscal year 2014-2015, the
employer contributions for normal cost and accrued liability for each of the
two groups of employees in subsection (a) shall be based on twenty-four per
cent of the member's compensation for police officers, firefighters, and corrections
officers and [sixteen and one-half] 16.5 per cent of the member's
compensation for all other employees.
Commencing with fiscal year 2015-2016 until fiscal year 2016-2017, the
employer contributions for normal cost and accrued liability for each of the
two groups of employees in subsection (a) shall be based on twenty-five per
cent of the member's compensation for police officers, firefighters, and
corrections officers and seventeen per cent of the member's compensation for
all other employees. In fiscal year
2017-2018, the employer contributions for normal cost and accrued liability for
each of the two groups of employees in subsection (a) shall be based on
twenty-eight per cent of the member's compensation for police officers,
firefighters, and corrections officers and eighteen per cent of the member's
compensation for all other employees. In
fiscal year 2018-2019, the employer contributions for normal cost and accrued
liability for each of the two groups in subsection (a) shall be based on thirty-one
per cent of the member's compensation for police officers, firefighters, and
corrections officers and nineteen per cent of the member's compensation for all
other employees. In fiscal year
2019-2020, the employer contributions for normal cost and accrued liability for
each of the two groups in subsection (a) shall be based on thirty-six per cent
of the member's compensation for police officers, firefighters, and corrections
officers and twenty-two per cent of the member's compensation for all other
employees. Commencing with fiscal year 2020-2021
and each subsequent fiscal year, the employer contributions for normal cost and
accrued liability for each of the two groups in subsection (a) shall be based
on forty-one per cent of the member's compensation for police officers,
firefighters, [and] corrections officers, the director of law
enforcement, deputy directors of the department of law enforcement, the
sheriff, law enforcement investigations staff investigators, and sheriff
division investigators and twenty-four per cent of the member's compensation for all
other employees. The contribution rates
shall amortize the total unfunded accrued liability of the entire plan over a
period not to exceed the
maximum funding period.
The contribution rates shall be subject to adjustment:
(1) If the actual period required to amortize the unfunded accrued liability exceeds the maximum funding period;
(2) If there is no unfunded accrued liability; or
(3) Based on the actuarial investigation conducted in accordance with section 88-105."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2026.
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INTRODUCED BY: |
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Report Title:
DLE; Retirement for Public Officers and Employees; Allowances; Contributions; Pension and Retirement Systems
Description:
Includes certain law enforcement administrators and employees of the Department of Law Enforcement as class A members of the pension and retirement systems and provides guidance for the computation of retirement benefits similar to police officers.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.