HB 1183: DLE; Retirement for Public Officers and Employees; Allowances; Contributions; Pension and Retirement Systems

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 provides 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 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 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 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 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 county of Maui and the city and county of Honolulu;

              (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 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 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 (d), (e), and (f) to read:

     "(d)  If a member, who became a member before July 1, 2012, has credited service as an elective officer or as a legislative officer, the member's retirement allowance shall be derived by adding the allowances computed separately under paragraphs (1), (2), (3), (4), (5), and (6) as follows:

     (1)  For a member who has credited service as an elective officer before July 1, 2012, irrespective of age, for each year of credited service as an elective officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (2)  For a member[,] who first earned credited service as an elective officer after June 30, 2012, irrespective of age, for each year of credited service as an elective officer, three per cent of the member's average final compensation as computed under section 88-81(e)(1), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (3)  For a member who has credited service as a legislative officer before July 1, 2012, irrespective of age, for each year of credited service as a legislative officer, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (4)  For a member who first earned credited service as a legislative officer after June 30, 2012, irrespective of age, for each year of credited service as a legislative officer, three per cent of the member's average final compensation as computed under section 88-81(e)(2), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

     (5)  If the member has credited service as a judge, the member's retirement allowance shall be computed on the following basis:

          (A)  For a member who has credited service as a judge before July 1, 1999, irrespective of age, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service;

          (B)  For a member who first earned credited service as a judge after June 30, 1999, but before July 1, 2012, and has attained the age of fifty-five, for each year of credited service as a judge, three and one-half per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  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);

          (C)  For a member who first earned credited service as a judge after June 30, 2012, but before July 1, 2031, and has attained the age of sixty, for each year of credited service as a judge, three per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  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); and

          (D)  For a member who first earned credited service as a judge after June 30, 2031, and has attained the age of sixty, for each year of credited service as a judge, one and three-fourths per cent of the member's average final compensation as computed under section 88-81(e)(3), in addition to an annuity that is the actuarial equivalent of the member's accumulated contributions allocable to the period of service.  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); and

     (6)  For each year of credited service not included in paragraph (1), (2), (3), (4), or (5), the average final compensation as computed under section 88-81(e)(4) shall be multiplied by two per cent for credited service earned as a class A or class H member, two and one-half per cent for credited service earned as a class B member, and one and one-quarter per cent for credited service earned as a class C member.  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).

The total retirement allowance shall not exceed seventy-five per cent of the member's highest average final compensation calculated under section 88-81(e)(1), (2), (3), or (4).  If the allowance exceeds this limit, it shall be adjusted by reducing any annuity accrued under paragraphs (1), (2), (3), (4), and (5) and the portion of the accumulated contributions specified in these paragraphs in excess of the requirements of the reduced annuity shall be returned to the member upon the member's retirement or paid to the member's designated beneficiary upon the member's death while in service or while on authorized leave without pay.  If a member has service credit as an elective officer or as a legislative officer in addition to service credit as a judge, then the retirement benefit calculation contained in this subsection shall supersede the formula contained in subsection (c).

     (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 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 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 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)  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;

    [(6)] (7)  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)] (8)  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,

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 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, or 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 per cent of the member's compensation for police officers, firefighters, and corrections officers and thirteen and three-fourths 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 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 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 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, 3000.

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.  Effective 7/1/3000.  (HD3)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 provides guidance for the computation of retirement benefits similar to police officers.

     SECTION 2.  Section 88-21, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:

     ""Deputy director of the department of law enforcement" means a person appointed by the director of law enforcement to regularly serve as a deputy director of the department of law enforcement.

     "Director of law enforcement" means the person appointed by the governor to regularly serve as the director of law enforcement.

     "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 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 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 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 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)  Judges, 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 county of Maui and the city and county of Honolulu;

              (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, 2025:

              (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; or

          (D)  Are former class H retirants who return to service requiring the retirant's active membership."

     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 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, 2025, 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 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 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 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 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)  After June 30, 2025, 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;

    [(6)] (7)  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)] (8)  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,

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 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, or 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 per cent of the member's compensation for police officers, firefighters, and corrections officers and thirteen and three-fourths 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 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 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 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, 3000.

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.  Effective 07/01/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO ALLOWANCE ON SERVICE RETIREMENTS.

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

     SECTION 1.  Section 88-21, Hawaii Revised Statutes, is amended as follows:

     1.  By adding four new definitions to be appropriately inserted and to read:

     ""Deputy director of the department of law enforcement" means a person appointed by the director of law enforcement to regularly serve as a deputy director of the department of law enforcement.

     "Director of law enforcement" means the person appointed by the governor to regularly serve as the director of law enforcement.

     "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."

     2.  By amending the definition of "law enforcement investigations staff investigators" to read:

     ""Law enforcement investigations staff investigators" means those employees in the investigations staff office of the department of law enforcement who have been conferred police powers by the director of law enforcement in accordance with section 353C-4 and are in the positions of investigator I to VII[.], including investigators of the department of the attorney general who were transferred to the department of law enforcement as provided in Act 278, Session Laws of Hawaii 2022."

     SECTION 2.  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 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 law enforcement investigations staff investigators shall contribute twelve and two-tenths 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 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 law enforcement investigations staff investigators who become members after June 30, 2012, shall contribute fourteen and two-tenths per cent of their compensation to the annuity savings fund; provided further that the director of law enforcement, all deputy directors of the department of law enforcement, department of law enforcement investigators, the sheriff, and sheriff division investigators who become members after June 30, 2025, shall contribute fourteen and two-tenths per cent of their compensation to the annuity savings fund; for service in that capacity."

     SECTION 3.  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)  Judges, 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 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 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 county of Maui and the city and county of Honolulu;

              (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, 2025:

              (i)  The director of law enforcement;

             (ii)  The deputy directors of the department of law enforcement;

            (iii)  Department of law enforcement investigators;

             (iv)  The sheriff; and

              (v)  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; or

          (D)  Are former class H retirants who return to service requiring the retirant's active membership."

     SECTION 4.  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 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 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 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 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 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 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 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 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 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 July 1, 2025, if the member has at least ten years of credited service, of which the last five or more years prior to retirement are credited service as the director of law enforcement, deputy director of the department of law enforcement, the sheriff, department of law enforcement investigator, or sheriff division investigator; provided that the dates listed in paragraphs (1), (2), (3), (4), (5), and (6) shall continue to apply to the retirement for those members already employed 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, and public safety investigations staff investigator prior to the enactment of Act 278, Session Laws of Hawaii 2022,

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, director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator, or law enforcement investigations staff investigator, the retirement allowance shall be two and one-half 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, the sheriff, sheriff division investigator, law enforcement investigations staff investigator, sewer worker, or water safety officer, of which the last five or more years prior to 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 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 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 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 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 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 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 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 retirement is credited service as a law enforcement investigations staff investigator;

(6)  If the member has at least ten years of credited service, of which the last five or more years prior to retirement is credited service as a director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator;

    [(6)] (7)  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 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)] (8)  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 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,

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, director of law enforcement, deputy director of the department of law enforcement, the sheriff, department of law enforcement investigator, or sheriff division investigator, or law enforcement investigations staff investigator, the retirement allowance shall be two and one-fourth 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, the sheriff, department of law enforcement investigator, or sheriff division investigator, law enforcement investigations staff investigator, sewer worker, water safety officer, or emergency medical technician, of which the last five or more years prior to retirement is credited service in these capacities."

     SECTION 5.  Section 88-122, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(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], director of law enforcement, deputy directors of the department of law enforcement, the sheriff, department of law enforcement investigators, or sheriff division investigators; and

     (2)  All other employees."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Law Enforcement; 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.  Effective 07/01/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to allowance on service retirements.

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

     SECTION 1.  Section 88-21, Hawaii Revised Statutes, is amended as follows:

     1.  By adding four new definitions to be appropriately inserted and to read:

     ""Deputy director of the department of law enforcement" means a person appointed by the director of law enforcement to regularly serve as a deputy director of the department of law enforcement.

     "Director of law enforcement" means the person appointed by the governor to regularly serve as the director of law enforcement.

     "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."

     2.  By amending the definition of "law enforcement investigations staff investigators" to read:

     ""Law enforcement investigations staff investigators" means those employees in the investigations staff office of the department of law enforcement who have been conferred police powers by the director of law enforcement in accordance with section 353C-4 and are in the positions of investigator I to VII[.], including investigators of the department of the attorney general who were transferred to the department of law enforcement as provided in Act 278, Session Laws of Hawaii 2022."

     SECTION 2.  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)  Judges, 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 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 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 county of Maui and the city and county of Honolulu;

              (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, 2025:

              (i)  The director of law enforcement; provided that the member shall have already been employed as a class A member prior to appointment as the director of law enforcement;

             (ii)  The deputy directors of the department of law enforcement; provided that the members shall have already been employed as class A members prior to appointment as deputy directors of law enforcement;

            (iii)  Department of law enforcement investigators;

             (iv)  The sheriff; provided that the member shall have already been employed as a class A member prior to appointment as sheriff; and

              (v)  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; or

          (D)  Are former class H retirants who return to service requiring the retirant's active membership."

     SECTION 3.  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 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 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 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 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 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 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 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 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 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 July 1, 2025, if the member has at least ten years of credited service, of which the last five or more years prior to retirement are credited service as the director of law enforcement, deputy director of the department of law enforcement, the sheriff, department of law enforcement investigator, or sheriff division investigator; provided that the dates listed in paragraphs (1), (2), (3), (4), (5), and (6) shall continue to apply to the retirement for those members already employed 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, and public safety investigations staff investigator prior to the enactment of Act 278, Session Laws of Hawaii 2022,

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, director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator, or law enforcement investigations staff investigator, the retirement allowance shall be two and one-half 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, the sheriff, sheriff division investigator, law enforcement investigations staff investigator, sewer worker, or water safety officer, of which the last five or more years prior to 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 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 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 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 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 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 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 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 retirement is credited service as a law enforcement investigations staff investigator;

(6)  If the member has at least ten years of credited service, of which the last five or more years prior to retirement is credited service as a director of law enforcement, deputy director of the department of law enforcement, the sheriff, or sheriff division investigator;

    [(6)] (7)  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 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)] (8)  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 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,

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, director of law enforcement, deputy director of the department of law enforcement, the sheriff, department of law enforcement investigator, or sheriff division investigator, or law enforcement investigations staff investigator, the retirement allowance shall be two and one-fourth 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, the sheriff, department of law enforcement investigator, or sheriff division investigator, law enforcement investigations staff investigator, sewer worker, water safety officer, or emergency medical technician, of which the last five or more years prior to retirement is credited service in these capacities."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Department of Law Enforcement; Retirement for Public Officers and Employees; Allowances; 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.

STAND. COM. REP. NO.  1159-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1183

      H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 1183, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ALLOWANCE ON SERVICE RETIREMENTS,"

begs leave to report as follows:

     The purpose of this measure 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 provide guidance for the computation of retirement benefits similar to police officers.  

     Your Committee received testimony in support of this measure from the Department of Human Resources Development and Department of Law Enforcement.  Your Committee received comments on this measure from the Department of the Attorney General and Employees' Retirement System.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1183, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1183, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  696

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1183

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1183, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ALLOWANCE ON SERVICE RETIREMENTS,"

begs leave to report as follows:

     The purpose of this measure 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 provides guidance for the computation of retirement benefits similar to police officers.

     Your Committee received testimony in support of this measure from the Department of Human Resources Development and Department of Law Enforcement.  Your Committee received comments on this measure from the Department of Budget and Finance; and Employees' Retirement System.

     Your Committee finds that this measure acknowledges the critical role of Department of Law Enforcement personnel by providing them with retirement benefits commensurate with their law enforcement duties and responsibilities, similar to those currently afforded to county police officers.  This measure establishes appropriate contribution rates and provides clear guidance for the computation of retirement benefits for Department of Law Enforcement administrators and employees.

     Your Committee has amended this measure by:

     (1)  Inserting a preamble to note the purposes of the measure, which are notwithstanding the moratorium on benefit enhancements;

     (2)  Deleting language that would have amended the definition of "law enforcement investigations staff investigators";

     (3)  Deleting the term "department of law enforcement investigators" throughout the measure and replacing it with the defined term "law enforcement investigations staff investigators", where appropriate;

     (4)  Amending the percentage of compensation that the Director of Law Enforcement, deputy directors of the Department of Law Enforcement, the Sheriff, and Sheriff Division investigators must contribute to the annuity savings fund;

     (5)  Clarifying the language regarding years of credited service for the Director of Law Enforcement, deputy directors of the Department of Law Enforcement, the Sheriff, and Sheriff Division investigators as it relates to the allowance on service retirement;

     (6)  Specifically establishing the employer contributions for normal cost and accrued liability for the Director of Law Enforcement, deputy directors of the Department of Law Enforcement, law enforcement investigations staff investigators, the Sheriff, and Sheriff Division investigators; and

     (7)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1183, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1183, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

STAND. COM. REP. NO.  132

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1183

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1183 entitled:

"A BILL FOR AN ACT RELATING TO ALLOWANCE ON SERVICE RETIREMENTS,"

begs leave to report as follows:

     The purpose of this measure is to include certain law enforcement administrators and employees of the Department of Law Enforcement as Class A members in the Employees' Retirement System.

     Your Committee received testimony in support of this measure from the Department of Law Enforcement.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance.  Your Committee received comments on this measure from the Employees’ Retirement System.

     Your Committee finds that it is important to have equitable retirement benefits for service members within the Department of Law Enforcement.  Your Committee further finds that when a Class A service member is appointed as Director, Deputy Director, Sheriff, or investigator in the Department of Law Enforcement, they no longer qualify as Class A members and must forfeit the benefit of receiving 2.5 percent of their average final compensation for pension that other Class A members in the Department of Law Enforcement are entitled to.  Your Committee believes that this measure ensures equitable retirement benefits in the Department of Law Enforcement by including these positions as Class A members in the Employees' Retirement System.

     Your Committee amended this measure by:

     (1)  Requiring these positions in the Department of Law Enforcement to contribute 14.2 percent of their compensation to the annuity savings fund;

     (2)  Removing language that would have required members to have at least five years of service as Class A members prior to being appointed to one of these positions to qualify as Class A members under this measure;

     (3)  Adding language to these positions in statute for the purpose of assessing the employer's accrued liability contributions;

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1183, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1183, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Labor,