RELATING TO ALLOWANCE ON SERVICE RETIREMENTS.

HB1183

HOUSE OF REPRESENTATIVES

H.B. NO.

1183

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:

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

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1.
�

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

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"
"
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.

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"
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.
"

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2.

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

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""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.
"

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SECTION
2
.
�
Section 88-47,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

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"(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:

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(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;

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(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;

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(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

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(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."

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SECTION
3.
�
Section 88-74,
Hawaii Revised Statutes, is amended as follows:

����
1.
�

By amending subsection (b) to read:

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"
(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;

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(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;

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(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;

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(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;

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(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;

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(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;

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(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
]

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(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

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(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)."

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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

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(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.

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(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;

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(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 retiremen
t 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."

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

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

INTRODUCED BY:

_____________________________

Report Title:

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

Description:

Include
s
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.