SB 730: RELATING TO ALLOWANCE ON SERVICE RETIREMENTS.

THE SENATE	S.B. NO.	730
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

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 by adding six new definitions to be appropriately inserted and to read as follows:

     ""Department of law enforcement investigator" means a person with police powers regularly employed by the department of law enforcement who holds the personnel class specification of investigator, 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.

     "Deputy director for 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 director of the department of law enforcement.

     "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.

     "Sheriff" means a person who serves as the administrator of the sheriff division.

     "Sheriff division investigator" means a person regularly employed by the department of law enforcement with police powers who holds the personnel class specification of investigator."

     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] 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;

          (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 before 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 before 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 before 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 as follows:

     "(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 July 1, 2023, 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, department of law enforcement investigator, or sheriff division investigator; provided that the dates listed in subsection (b)(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 before the enactment of Act 278, Session Laws of Hawaii 2022;

     [(7)](8)  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)](9)  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;

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] law enforcement investigations staff investigator, director of law enforcement, deputy director of the department of law enforcement, sheriff, department of law enforcement investigator, 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 as follows:

     "(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, law enforcement investigations staff investigator, director of law enforcement, deputy director of the department of law enforcement, sheriff, department of law enforcement investigator, sheriff division 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] before retirement is credited service as a firefighter, police officer, or an investigator of the department of the prosecuting attorney;

     (2)  If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a corrections officer;

     (3)  If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as an investigator of the department of the attorney general;

     (4)  If the member has at least ten years of credited service of which the last five or more years [prior to] before retirement is credited service as a narcotics enforcement investigator;

     (5)  If the member has at least ten years of credited service, of which the last five or more years [prior to] before retirement is credited service as a law enforcement investigations staff investigator;

     (6)  If the member 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, sheriff, department of law enforcement investigator, 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, [or] law enforcement investigations staff investigator, director of law enforcement, deputy director of the department of law enforcement, sheriff, department of law enforcement investigator, 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 as follows:

     "(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, law enforcement investigations staff investigator, director of law enforcement, deputy director of the department of law enforcement, sheriff, department of law enforcement investigator, sheriff division 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.

 

INTRODUCED BY:	_____________________________

 

 

 

Report Title:

DLE; Retirement for Public Officers and Employees; Allowances; Pension and Retirement Systems

 

Description:

Adds definitions for certain Department of Law Enforcement employees.  Establishes guidance for the computation of retirement benefits for the Director of Law Enforcement, Deputy Director of the Department of Law Enforcement, Sheriff Division Investigator, Sheriff, and Department of Law Enforcement Investigator.

 

 

 

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