§88-322 Conversion of previous credited service. (a) Class C members who are in service on June 30, 2006, and make the election to become class H members pursuant to section 88-321(a), shall have the option to convert some or all of their class C credited service, as of June 30, 2006, to class H credited service by paying the full actuarial cost of the conversion as of December 31, 2008, in the manner provided in subsection (d). The option to convert class C credited service to class H credited service shall also apply:
(1) To forfeited credit for previous service that a member is eligible to have restored as of June 30, 2006; and
(2) To membership service credit that a member is eligible to claim under section 88-272(4) to (6) as of June 30, 2006;
provided that the member shall claim the forfeited service credit and the membership service credit by the date established by the board at a meeting held pursuant to chapter 92.
(b) All class A and class B credited service of class A or class B members who make the election to become class H members pursuant to section 88-321(a) shall be converted to class H credited service. The cost of the conversion of class A or class B credited service shall be the member's accumulated contributions as of the date of conversion. Verified membership service credit paid for pursuant to section 88-59 under an irrevocable payroll authorization entered into prior to July 1, 2006, shall be credited as class H credited service. Class A and class B members who are in service on June 30, 2006, and make the election to become class H members pursuant to section 88-321(a) shall have the option to convert some or all of their class C credited service, as of June 30, 2006, to class H credited service by paying, in the manner provided in subsection (d), the full actuarial cost of the conversion as of December 31, 2008. The option to convert class C credited service to class H credited service shall also apply:
(1) To forfeited credit for previous service that a member is eligible to have restored as of June 30, 2006; and
(2) To membership service credit that a member is eligible to claim under section 88-272(4) to (6) as of June 30, 2006;
provided that the member shall claim the forfeited service credit and the membership service credit by the date established by the board at a meeting held pursuant to chapter 92.
(c) The election to convert class C credited service to class H credited service shall be made by filing a form with the system not later than one hundred eighty days after publication of the notice required by subsection (e). The board may, by action taken at a meeting held pursuant to chapter 92, extend the deadline for making the election.
(d) The board may permit the cost of conversion of class C credited service to class H credited service pursuant to subsection (a) or (b) to be paid by the member in any one of the following methods at the member's option:
(1) By after-tax deductions from the member's compensation. An irrevocable payroll authorization filed by the member for a period not to exceed one hundred twenty months shall remain in effect until the completion of the payroll payments or termination of employment, whichever is earlier. The amount of the deductions shall be in an amount sufficient to amortize the actuarial cost of the conversion, together with interest at the rate of eight per cent a year, in level bi-monthly payments over the period specified in the irrevocable authorization. Service credited will be proportional on the basis of whole months. For example, a member electing to convert one hundred twenty months of service over sixty months and terminating after thirty and one-half months of deductions pursuant to this subsection, will have converted sixty months of class C service to class H service; or
(2) By lump sum payment.
The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member's individual account and become part of the member's accumulated contributions. The deductions from compensation shall commence, and any lump sum payment shall be paid to the system, within one hundred eighty days after the deadline for making the election to convert class C credited service to class H credited service. If a member is absent from the State while in the military service of the United States during the one hundred eighty-day period after the deadline for making the election, the deductions from the member's compensation shall commence, and any lump sum payment shall be made by the member, within one hundred eighty days after the member's return to the member's regular employment with the State or county; provided that any extension, pursuant to subsection (c), of the deadline for making the election to convert class C credited service to class H credited service shall not extend the time for the deductions from the member's compensation to commence or for the member to make any lump sum payment unless the extension pursuant to subsection (c) is applicable to all members eligible to make the election. A member's election to convert class C credited service to class H credited service shall be deemed revoked as to any service for which payments by deductions from compensation do not commence, or for which the lump sum payment is not made, within the time required by this subsection.
(e) The option to convert class C credited service to class H credited service pursuant to this section shall be applicable only to the extent that the conversion may be achieved without affecting the eligibility of the system as a qualified plan under section 401(a) of the Internal Revenue Code of 1986, as amended, or the eligibility of the employer pick up under section 414(h)(2) of the Internal Revenue Code of 1986, as amended. If the trustees determine that the conditions of the foregoing sentence are satisfied, the system shall publish a statewide notice that class H members who are eligible to convert class C credited service to class H credited service under this section, subject to the provisions of this section, may convert class C credited service to class H credited service.
(f) The actuarial cost of converting a member's class C credited service to class H credited service under subsections (a) and (b) shall be based on the member's actual age in full years as of December 31, 2008, and on the member's monthly base salary or monthly basic rate of pay as of December 31, 2008, exclusive of overtime, differentials, supplementary payments, bonuses, and salary supplements, but including elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended. [L 2004, c 179, pt of §1; am L 2005, c 58, §24; am L 2006, c 169, §34; am L 2007, c 215, §22; am L 2008, c 41, §9; am L 2009, c 121, §6]
Structure Hawaii Revised Statutes
Title 7. Public Officers and Employees
88. Pension and Retirement Systems
88-3 Payment on death of pensioner.
88-4 Medical aid, etc., when free.
88-5 List of pensioners, who shall provide.
88-6 Payment of refunds and retirement benefits.
88-7 County pensioners; post retirement allowance.
88-8 University of Hawaii optional retirement system.
88-11 Bonus; pensioners' special compensation; amounts available.
88-12 Bonus; requirements, limitations.
88-13 Bonus; retirants not eligible for.
88-14 Bonus; authority to pay.
88-15 Bonus; waiver by veteran.
88-17 Bonus payment; limitation.
88-22 System established; name.
88-22.5 Federal tax qualification requirements.
88-23 General administration of system vested in board.
88-27.5 Closed meetings of the board; authorized.
88-29 Officers, employees, legal adviser.
88-33 Prohibited interest of trustees and employees of board.
88-41 Limitation of other statutes.
88-42.5 Membership of employees holding more than one position, appointment, or office.
88-42.6 Membership of elective officers.
88-43 Persons ineligible for membership.
88-45.5 Acceptance of rollovers and transfers from other plans.
88-46 Deducting employee contributions from salary and employer pick up of employee contributions.
88-48 Deduction in class A member's account.
88-49 Employees paid partly from federal funds.
88-49.3 Employees paid from certain federal funds.
88-49.5 Certain employees subject to federal retirement system; election.
88-49.7 East-West center employees.
88-50 Computation of year of service.
88-50.5 Credit for mandatory maternity leave.
88-51 Membership service generally.
88-52 Service while a member of the legislature.
88-54 Service while legislative employee.
88-54.2 Session employees of the legislature; exempt from mandatory enrollment.
88-54.5 Service while a member of the board of trustees of the office of Hawaiian affairs.
88-55 Services of field civilian personnel of the Hawaii national guard.
88-57 Prior service generally.
88-58 Prior service credit while per diem employee.
88-59 Acquisition of membership service.
88-59.5 Previous membership service credit for legislative officers.
88-59.6 REPEALED. L 2008, c 47, §12.
88-60 Members whose services are on loan to other governments.
88-61 Termination of membership.
88-62 Return to service of a former member.
88-63 Credit for unused sick leave.
88-70 Third application for retirement; withdrawal prohibited and retirement mandatory.
88-71 Credited service at retirement.
88-74 Allowance on service retirement.
88-74.5 Finalizing of pensions.
88-74.6 Unreduced allowance on service retirement; when applicable.
88-74.7 Commencement of benefits on required beginning date.
88-74.8 Forfeiture of benefits; felony convictions.
88-75 Ordinary disability retirement.
88-76 Allowance on ordinary disability retirement.
88-79 Service-connected disability retirement.
88-80 Allowance on retirement for service-connected disability.
88-81 Average final compensation.
88-81.5 Federal tax limits on annual compensation.
88-83 Election of retirement allowance option.
88-84.5 Federal limits on annual compensation for ordinary death benefit.
88-85 Accidental death benefit.
88-85.5 Applications for accidental death benefits; approval by the system.
88-87 Adjustment for deficiency in accumulated contributions.
88-88 Adjustment of retirement allowances of retirants.
88-90 Post retirement allowances.
88-91 Exemption from taxation and execution.
88-92 Garnishment in certain cases; procedure.
88-94 Withholding of income taxes.
88-95 Withholding of dues and insurance premiums.
88-96 Rights of members separated from service.
88-97 Return to service of a member who has vested benefit status.
88-98 Return to service of a retirant.
88-99 Moratorium on benefit enhancements
88-100 Payment by employers of costs associated with significant non-base pay increases.
88-101 Payment of existing pensions.
88-102 Classification of members.
88-105 Actuarial investigations, valuations.
88-105.5 Stress test; annual report.
88-106.5 Compromise and settlement
88-108 Cash for meeting disbursements.
88-110 Board; trustees of funds.
88-111 Custodian of the funds.
88-112 Annuity savings fund; annual statement.
88-113 Payments from annuity savings fund.
88-114 Pension accumulation fund.
88-115.5 REPEALED. L 1998, c 151, §18.
88-119.5 Investment guidelines.
88-121 Power to make agreements to protect securities on reorganization or otherwise.
88-121.5 Power to enter into security loan agreements.
88-122 Determination of employer normal cost and accrued liability contributions.
88-123 Amount of annual contributions by the State and counties.
88-124 Payment of state contributions to the system.
88-125 Contributions by certain state agencies.
88-126 Payment of county contributions to the system.
88-126.5 Advance payments of state and county contributions to the system.
88-132 Service credit; payment of contributions.
88-133 Benefits and conditions applicable to service member.
88-134 Service retirement benefit.
88-135 Ordinary disability retirement benefit.
88-136 Accidental disability benefit.
88-137 Ordinary death benefit.
88-138 Accidental death benefit.
88-139 Return of contributions.
88-140 Duration of service member's status.
88-141 Computation of compensation earned or earnable.
88-142 Right of amendment or repeal reserved; retroactive effect.
88-152 Certain other employees included.
88-153 Police officers, firefighters, and bandsmen pension system; trustees, powers.
88-154 Officers of the board; duties.
88-156 Appropriations and expenditure.
88-157 Use of donations, contributions, gifts, or bequests.
88-158 Disability retirement benefits.
88-159 Reexamination of disability beneficiary; hearing.
88-160 Service retirement benefits.
88-161 Dismissal after twenty years' service; pensions.
88-162 Dismissal after ten years' service; pension.
88-163 Death benefits: funeral expenses; payments to dependents.
88-164 Benefits in lieu of other payments.
88-165 Adjustments of pensions.
88-166 Computation; service as police officer, firefighter, or bandsman.
88-167 Computation; prior credits.
88-168 Orders, discipline, medical examination, etc.
88-169 Payments of pensions; inalienable.
88-171 Public hearings; notice.
88-181 Pension boards created.
88-182 Members: appointment, terms, removals.
88-184 Expenses; appropriations.
88-185 Assistants; county clerk, attorney, and treasurer.
88-189 Widow's, widower's, and reciprocal beneficiary's pensions.
88-191 Computation of service.
88-192 Examination by physician.
88-193 Compliance with law required.
88-202 Restrictions as to personnel.
88-204 County appropriations directed.
88-212 Federal-state agreement.
88-213 Division of retirement systems.
88-214 Modifications to agreement.
88-215 Contributions by state employees.
88-216 Collection of contributions.
88-218 Plans for coverage of employees of political subdivision.
88-220 Refusal or termination of plans.
88-221 Payments by political subdivisions.
88-222 Contributions by employees of political subdivisions.
88-224 Contribution fund; established.
88-225 Purpose of contribution fund.
88-226 Payments to federal government.
88-228 Appropriations to contribution fund.
88-273 Break in service; reemployment.
88-321 Election and membership.
88-322 Conversion of previous credited service.
88-323 Class H credited service.
88-324 Acquisition of membership service.
88-325 Employee contributions.
88-326 Deducting employee contributions from salary and employer pick up of employee contributions.
88-282 Service retirement allowance.
88-283 Election of retirement allowance option.
88-284 Ordinary disability retirement.
88-285 Service-connected disability retirement.
88-332 Service retirement allowance.
88-333 Election of retirement allowance option.
88-334 Ordinary disability retirement.
88-335 Ordinary disability retirement allowance.
88-336 Service-connected disability retirement.
88-337 Service-connected disability retirement allowance.
88-338 Ordinary death benefit.
88-339 Accidental service-connected death benefit
88-340 Termination of membership.
88-341 Rights of members separated from service.
88-342 Return to service of a former member without vested benefit status.
88-343 Return to service of a former member who has vested benefit status.