§88-273  Break in service; reemployment. (a)  Any class C member who terminates service prior to accumulating ten yearsof credited service, excluding unused sick leave, shall cease to be a memberand shall forfeit all credited service; provided that:

(1)  If the former class C member becomes a memberagain within one full year following the calendar year in which the member'semployment terminated, all service credit for previous service shall berestored.  If the former class C member becomes a member again more than one fullyear following the calendar year in which the member's employment terminated,one month of service credit for previous service shall be restored for eachmonth of service rendered following the return to membership; and

(2)  If the former class C member becomes a class A,class B, or class H member within one full year following the calendar year inwhich the member's employment terminated, all class C service credit forprevious service shall be restored.  If the former class C member becomes aclass A, class B, or class H member more than one full year following thecalendar year in which the member's employment terminated, one month of class Cservice credit for previous service shall be restored for each month of servicerendered following the return to membership.

Subject to the provisions of sections 88-322 and88-324, the service credit restored pursuant to this subsection shall be classC service credit.

(b)  Any class C member who terminates servicewith a vested right and who subsequently becomes a class A, class B, class C,or class H member shall retain all service credit for previous service andshall be credited with additional service credit for service rendered followingthe return to membership.

(c)  Any retirant who retired under theprovisions of this part and returns to service requiring active membership inthe system as a class C member shall be reenrolled as an active member, and theretirant's retirement allowance shall be suspended.  When the member again retires,the retirement allowance shall be the allowance to which the member wasentitled under the retirement allowance option selected when the memberpreviously retired and which was suspended; plus, for the period of serviceduring the member's reemployment, the allowance to which the member is entitledfor that service based on the retirement allowance option initially selectedand computed for the member's age, average final compensation, and otherfactors in accordance with the benefit formula of a class C member undersection 88-282 in existence at the time of the member's final retirement.

(d)  Any retirant who retired under theprovisions of this part and returns to service requiring active membership inthe system as a class A or class B member shall be reenrolled as an activemember, and the retirant's retirement allowance shall be suspended.  When themember again retires, the retirement allowance shall be the allowance to whichthe member was entitled under the retirement allowance option selected when themember previously retired and which was suspended; plus, for the period ofservice during the member's reemployment, the allowance to which the member isentitled for that service based on the retirement allowance option initiallyselected and computed for the member's age, average final compensation, andother factors in accordance with the benefit formula of a class A or class Bmember under section 88-74 in existence at the time of the member's finalretirement.

(e)  Any retirant who received the specialretirement incentive benefit under Act 253, Session Laws of Hawaii 2000, asamended by Act 131, Session Laws of Hawaii 2002, and is reemployed by the Stateor a county in any capacity shall:

(1)  Have the retirant's retirement allowance suspended;

(2)  Forfeit the special retirement incentive benefitand any other related benefit provided by this chapter; and

(3)  Be subject to the age and service requirementsunder section 88-281 when the member again retires.

(f)  If a retirant's designation of beneficiarywas irrevocable upon the retirant's initial retirement, the retirant may notchange the retirant's designated beneficiary when the retirant returns toservice or when the former retirant again retires.

(g)  A retirant who returns to service shallnot be considered to be "in service", for the purposes of section 88-284,88-285, or 88-286, or any other provision of this chapter providing forbenefits arising out of the disability or death of a member.  A retirant whoreturns to service and dies during the period of reemployment shall beconsidered to have retired again effective as of the first day of the monthfollowing the month in which the death occurs, except for death during themonth of December when the effective date of retirement may be the last day ofthe month.

(h)  The board shall adopt any rules as may berequired to administer this section. [L 1984, c 108, pt of §8; am L 1987, c117, §4; am L 2001, c 61, §2; am L 2004, c 179, §25; am L 2006, c 169, §28; amL 2007, c 215, §19; am L 2009, c 121, §4]

 

Attorney General Opinions

 

  Return to service of contributory plan retirant; computationof retirement benefits.  Att. Gen. Op. 85-21.

  Pursuant to this section and §88-281, former employee was amember of ERS until effective date of former employee's retirement.  Att. Gen.Op. 97-12.