§88-83 Election of retirement allowance option. (a) Upon retirement, any member may elect to receive the maximum retirement allowance to which the member is entitled computed in accordance with section 88-74, 88-76, or 88-80, and in the event of the retirant's death, there shall be paid to the retirant's designated beneficiary, or otherwise to the retirant's estate the difference between:
(1) The balance of the member's accumulated contributions at the time of the member's retirement; and
(2) The retirement allowance and, if the retirant retired after November 30, 2004, the post retirement allowances paid or payable to the retirant prior to death.
In lieu of this maximum allowance, the member may elect to receive the member's retirement allowance under any one of the optional plans described below, which shall be actuarially equivalent to the maximum allowance.
Option 1: The member may elect to receive a lesser retirement allowance during the member's lifetime. At the member's retirement, there shall be established an amount of initial insurance that shall be computed on the basis of actuarial factors adopted by the board. Upon the death of the retirant, there shall be paid to the retirant's designated beneficiary, otherwise to the retirant's estate: any balance remaining in the initial insurance reserve, after deducting the retirement allowance and, if the retirant retired after November 30, 2004, the post retirement allowances paid to the retirant prior to death. In lieu of the lump sum balance, the beneficiary may, if the beneficiary is a natural person, elect to receive an allowance for life based on the value of the balance; provided that the allowance is not less than $100 per month. If the beneficiary of the retirant who:
(1) Retired after November 30, 2004, and
(2) Dies after June 30, 2007,
elects to receive the allowance in lieu of the lump sum balance, there shall also be payable to the beneficiary an additional allowance calculated and payable in the same manner as a post retirement allowance under section 88-90. The additional allowance shall be based on the original amount of the allowance in lieu of the lump sum balance, and shall commence on the first day of July following the calendar year in which payment of the allowance in lieu of the lump sum balance is effective.
Option 2: The member may elect to receive a lesser retirement allowance during the member's lifetime and have those allowances, including cumulative post retirement allowances, if applicable, continued after the member's death to the member's beneficiary designated at the time of the member's retirement, for the life of the beneficiary. If the beneficiary dies prior to the retirant, all further payments shall cease upon the death of the retirant; provided that for members retiring after November 30, 2004, if the retirant's designated beneficiary dies at any time after the retirant retired, but before the death of the retirant, the retirant, upon the death of the retirant's designated beneficiary, shall receive a retirement allowance, including cumulative post retirement allowances, calculated as if the retirant had selected the maximum retirement allowance to which the retirant is entitled. Only one beneficiary shall be designated under this option. The beneficiary designated under this option shall be a natural person, and benefits under this option shall only be paid to a natural person.
Option 3: The member may elect to receive a lesser retirement allowance during the member's lifetime and have one-half of the allowance, including fifty per cent of all cumulative post retirement allowances, if applicable, continued after the member's death to the member's beneficiary designated at the time of the member's retirement, for the life of the beneficiary. If the beneficiary dies prior to the retirant, all further payments shall cease upon the death of the retirant; provided that for members retiring after November 30, 2004, if the retirant's designated beneficiary dies at any time after the retirant retired, but before the death of the retirant, the retirant, upon the death of the retirant's designated beneficiary, shall receive a retirement allowance, including cumulative post retirement allowances, calculated as if the retirant had selected the maximum retirement allowance to which the retirant is entitled. Only one beneficiary shall be designated under this option. The beneficiary designated under this option shall be a natural person, and benefits under this option shall only be paid to a natural person.
Option 4: The member may elect to receive a lesser retirement allowance during the member's lifetime and provide some other benefit to the member's beneficiary in accordance with the member's own specification; provided that this election shall be certified by the actuary to be the actuarial equivalent of the member's retirement allowance and shall be approved by the board.
Option 5: The member may elect to receive the balance of the member's accumulated contributions at the time of retirement in a lump sum and, during the member's lifetime, a retirement allowance equal to the maximum retirement allowance reduced by the actuarial equivalent of these contributions. Upon the death of the retirant, all further payments shall cease. Only a member retiring from service having at least ten years of credited service or for disability may elect this retirement allowance option.
To receive benefits, the beneficiary must have been designated by the member in the form and manner prescribed by the board.
(b) In the event of the death of a member after the date of the filing of the member's written application to retire but prior to the retirement date designated by the member, and, if the member was eligible to retire on the date of the member's death, the member's designated beneficiary, or otherwise the personal representative of the member's estate, may elect to receive either the death benefit under section 88-84 or the allowance under the option selected by the member that would have been payable had the member retired. The effective date of the member's retirement shall be the first day of a month, except for the month of December when the effective date of retirement may be on the first or last day of the month, and shall be no earlier than the later of thirty days from the date the member's retirement application was filed or the day following the member's date of death. The election may not be made if, at the time of the member's death, there are individuals who are eligible to receive death benefits under section 88-85 who have made a claim for the benefits; provided that, if the designated beneficiary is an individual eligible to receive benefits under section 88-85, the designated beneficiary may receive benefits pursuant to an election made under this section pending disposition of the claim for benefits under section 88-85. If death benefits are payable under section 88-85, the death benefits shall be in lieu of any benefits payable pursuant to this section.
(c) No election by a member under this section shall take effect unless:
(1) The spouse or reciprocal beneficiary of the member is furnished written notification that:
(A) Specifies the retirement date, the benefit option selected, and the beneficiary designated by the member;
(B) Provides information indicating the effect of the election; and
(C) Is determined adequate by rules adopted by the board in accordance with chapter 91;
(2) The member selects option 2 or option 3 and designates the spouse or reciprocal beneficiary as the beneficiary; or
(3) It is established to the satisfaction of the board that the notice required under paragraph (1) cannot be provided because:
(A) There is no spouse or reciprocal beneficiary;
(B) The spouse or reciprocal beneficiary cannot be located;
(C) The member has failed to notify the system that the member has a spouse or reciprocal beneficiary, or has failed to provide the system with the name and address of the member's spouse or reciprocal beneficiary; or
(D) Of other reasons, as established by board rules adopted in accordance with chapter 91.
Any notice provided to a spouse or reciprocal beneficiary, or determination that the notification of a spouse or reciprocal beneficiary cannot be provided, shall be effective only with respect to that spouse or reciprocal beneficiary. The system will rely upon the representations made by a member as to whether the member has a spouse or reciprocal beneficiary and the name and address of the member's spouse or reciprocal beneficiary.
(d) Each member, within a reasonable period of time before the member's retirement date, shall be provided a written explanation of:
(1) The terms and conditions of the various benefit options;
(2) The rights of the member's spouse or reciprocal beneficiary under subsection (c) to be notified of the member's election of a benefit option; and
(3) The member's right to make, and the effect of, a revocation of an election of a benefit option.
(e) The system shall not be liable for any false statements made to the system by the member or by the member's employer.
(f) In the event of the death of the retirant within one year after the date of retirement, the retirant's designated beneficiary may elect to receive either the death benefit under the retirement allowance option selected by the retirant, or the benefit that would have been paid under section 88-84 had the retirant died immediately prior to retirement, less any payments received by the retirant; provided that the designated beneficiary may not elect to receive benefits under option 2 of this section if the retirant would not have been permitted by applicable law or by the rules of the board to name the designated beneficiary as beneficiary under option 2.
(g) The increase in the retirant's benefit under options 2, 3, and, if applicable, 4 upon the death of the retirant's designated beneficiary shall be effective the first day of the month following the date of death of the designated beneficiary. The retirant shall notify the system in writing and provide a certified copy of the beneficiary's death certificate. The system shall make retroactive benefit payments to the retirant, not to exceed six months from the date the written notification and the certified copy of the death certificate are received by the system. The retroactive payments shall be without interest.
(h) Upon a member's retirement:
(1) The member's election of a retirement allowance option shall be irrevocable; and
(2) The member's designation of a beneficiary shall be irrevocable if the retirement allowance option elected by the member is:
(A) Option 2 or 3;
(B) An option that includes option 2 or 3 in combination with some other form of benefit payment; or
(C) Any other option for which the actuarial equivalent of the option to the maximum retirement allowance is determined at the time of the member's retirement based in whole or in part on the age of the member's designated beneficiary.
(i) A claim under this section by a retirant's or member's beneficiary for benefits upon the death of a retirant or member shall be filed no later than three years from the date of the retirant's or member's death. [L 1925, c 55, §6(11); RL 1935, pt of §7925; RL 1945, §708, subs 11; am L 1951, c 127, §2; am L 1955, c 270, §3; RL 1955, §6-50; am L 1959, c 157, §1; am L 1963, c 127, §11; am L 1964, c 62, § §6, 8; am L 1965, c 222, § §6, 9; Supp, §6-42.5; HRS § §88-74, 75; am L 1969, c 110, pt of §1; am L 1972, c 22, §1; am L 1977, c 82, §1; am L 1982, c 115, §3; gen ch 1985; am L 1988, c 8, §1; am L 1998, c 151, §9; am L 2003, c 182, §1; am L 2004, c 179, §12; am L 2006, c 169, §13; am L 2007, c 215, §13]
Attorney General Opinions
Change to "unisex" option factor tables valid. Att. Gen. Op. 82-3.
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.