§88-74  Allowance on serviceretirement.  (a)  Upon retirement from service, a member shall receive amaximum retirement allowance as follows:

(1)  If the member has attained age fifty-five, aretirement allowance of two per cent of the member's average final compensationmultiplied by the total number of years of the member's credited service as aclass A and B member, excluding any credited service as a judge, electiveofficer, or legislative officer, plus a retirement allowance of one andone-fourth per cent of the member's average final compensation multiplied bythe total number of years of prior credited service as a class C member, plus aretirement allowance of two per cent of the member's average final compensationmultiplied by the total number of years of prior credited service as a class Hmember; provided that:

(A)  After June 30, 1968, if the member has atleast ten years of credited service of which the last five or more years priorto retirement is credited service as a firefighter, police officer, or aninvestigator of the department of the prosecuting attorney;

(B)  After June 30, 1977, if the member has atleast ten years of credited service of which the last five or more years priorto retirement is credited service as a corrections officer;

(C)  After June 16, 1981, if the member has atleast ten years of credited service of which the last five or more years priorto retirement is credited service as an investigator of the department of theattorney general;

(D)  After June 30, 1989, if the member has atleast ten years of credited service of which the last five or more years priorto retirement is credited service as a narcotics enforcement investigator;

(E)  After December 31, 1993, if the member hasat least ten years of credited service of which the last five or more yearsprior to retirement is credited service as a water safety officer;

(F)  After June 30, 1994, if the member has atleast ten years of credited service, of which the last five or more years priorto retirement are credited service as a public safety investigations staffinvestigator;

(G)  After June 30, 2002, if the member:

(i)  Has at least ten years of credited serviceas a firefighter;

(ii)  Is deemed permanently medicallydisqualified due to a service related disability to be a firefighter by theemployer's physician; and

(iii)  Continues employment in a class A or Bposition other than a firefighter; and

(H)  After June 30, 2004, if the member:

(i)  Has at least ten years of credited serviceas a police officer;

(ii)  Is deemed permanently medicallydisqualified due to a service related disability to be a police officer by theemployer's physician; and

(iii)  Continues employment in a class A or Bposition other than a police officer;

then for each year of service as a firefighter, policeofficer, corrections officer, investigator of the department of the prosecutingattorney, investigator of the department of the attorney general, narcoticsenforcement investigator, water safety officer, or public safety investigationsstaff investigator, the retirement allowance shall be two and one-half per centof the member's average final compensation.  The maximum retirement allowancefor those members shall not exceed eighty per cent of the member's averagefinal compensation.  If the member has not attained age fifty-five, themember's retirement allowance shall be computed as though the member hadattained age fifty-five, reduced for age as provided in subsection (b);

(2)  If the member has credited service as a judge,the member's retirement allowance shall be computed on the following basis:

(A)  For a member who has credited service as ajudge before July 1, 1999, irrespective of age, for each year of creditedservice as a judge, three and one-half per cent of the member's average finalcompensation in addition to an annuity that is the actuarial equivalent of themember's accumulated contributions allocable to the period of service; and

(B)  For a member who first earned creditedservice as a judge after June 30, 1999, for each year of credited service as ajudge, three and one-half per cent of the member's average final compensationin addition to an annuity that is the actuarial equivalent of the member'saccumulated contributions allocable to the period of service.  If the memberhas not attained age fifty-five, the member's retirement allowance shall becomputed as though the member had attained age fifty-five, reduced for age asprovided in subsection (b); or

(C)  For a judge with other credited service,as provided in paragraph (1).  If the member has not attained age fifty-five,the member's retirement allowance shall be computed as though the member hadattained age fifty-five, reduced for age as provided in subsection (b); or

(D)  For a judge with credited service as anelective officer or as a legislative officer, as provided in paragraph (3).

No allowance shall exceed seventy-five per centof the member's average final compensation.  If the allowance exceeds thislimit, it shall be adjusted by reducing the annuity included in subparagraphs(A) and (B) and the portion of the accumulated contributions specified in thesubparagraphs in excess of the requirements of the reduced annuity shall bereturned to the member upon the member's retirement or paid to the member'sdesignated beneficiary upon the member's death while in service or while onauthorized leave without pay.  The allowance for judges under this paragraph,together with the retirement allowance provided by the federal government for similarservice, shall in no case exceed seventy-five per cent of the member's averagefinal compensation; or

(3)  If the member has credited service as an electiveofficer or as a legislative officer, the member's retirement allowance shall bederived by adding the allowances computed separately under subparagraphs (A),(B), (C), and (D) as follows:

(A)  Irrespective of age, for each year ofcredited service as an elective officer, three and one-half per cent of themember's average final compensation as computed under section 88-81(e)(1), inaddition to an annuity that is the actuarial equivalent of the member'saccumulated contributions allocable to the period of service; and

(B)  Irrespective of age, for each year ofcredited service as a legislative officer, three and one-half per cent of themember's average final compensation as computed under section 88-81(e)(2), inaddition to an annuity that is the actuarial equivalent of the member'saccumulated contributions allocable to the period of service;

(C)  If the member has credited service as ajudge, the member's retirement allowance shall be computed on the followingbasis:

(i)  For a member who has credited service as ajudge before July 1, 1999, irrespective of age, for each year of credited serviceas a judge, three and one-half per cent of the member's average finalcompensation as computed under section 88-81(e)(3), in addition to an annuitythat is the actuarial equivalent of the member's accumulated contributionsallocable to the period of service; and

(ii)  For a member who first earned creditedservice as a judge after June 30, 1999, and has attained the age of fifty-five,for each year of credited service as a judge, three and one-half per cent ofthe member's average final compensation as computed under section 88-81(e)(3),in addition to an annuity that is the actuarial equivalent of the member'saccumulated contributions allocable to the period of service.  If the memberhas not attained age fifty-five, the member's retirement allowance shall becomputed as though the member had attained age fifty-five, reduced for age asprovided in subsection (b); and

(D)  For each year of credited service notincluded in subparagraph (A), (B), or (C), the average final compensation ascomputed under section 88-81(e)(4) shall be multiplied by two per cent forcredited service earned as a class A or class H member, two and one-half percent for credited service earned as a class B member, and one and one-quarterper cent for credited service earned as a class C member.  If the member hasnot attained age fifty-five, the member's retirement allowance shall becomputed as though the member had attained age fifty-five, reduced for age asprovided in subsection (b).

The total retirement allowance shall not exceedseventy-five per cent of the member's highest average final compensationcalculated under section 88-81(e)(1), (2), (3), or (4).  If the allowanceexceeds this limit, it shall be adjusted by reducing any annuity accrued undersubparagraphs (A), (B), and (C) and the portion of the accumulatedcontributions specified in these subparagraphs in excess of the requirements ofthe reduced annuity shall be returned to the member upon the member'sretirement or paid to the member's designated beneficiary upon the member'sdeath while in service or while on authorized leave without pay.  If a memberhas service credit as an elective officer or as a legislative officer inaddition to service credit as a judge, then the retirement benefit calculationcontained in this paragraph shall supersede the formula contained in paragraph(2).

(b)  Except as provided in subsection (a), if amember has not attained age fifty-five at the date of retirement, the member'sretirement allowance shall be reduced, for each month the member's age at thedate of retirement is below age fifty-five, as follows:

(1)  0.4166 per cent for each month below agefifty-five and above age forty-nine and eleven months; plus

(2)  0.3333 per cent for each month below age fiftyand above age forty-four and eleven months; plus

(3)  0.2500 per cent for each month below ageforty-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 themember has at least twenty-five years of credited service as a firefighter,police officer, corrections officer, investigator of the department of theprosecuting attorney, investigator of the department of the attorney general,narcotics enforcement investigator, public safety investigations staffinvestigator, sewer worker, or water safety officer, of which the last five ormore years prior to retirement is credited service in these  capacities. [L1925, c 55, §6(2); RL 1935, pt of §7925; RL 1945, §708, subs 2; am L 1945, c73, §1(e); am L 1947, c 85, §1(d); RL 1955, §6-42; am L 1957, c 143, §3 and c231, §1(c); am L 1961, c 175, §2 and c 181, §4; am L 1962, c 20, §3; am L 1963,c 127, §4; am L 1964, c 62, §5; am L 1965, c 222, §5; am L 1967, c 130, §§2, 4;HRS §88-64; am L 1969, c 110, pt of §1; am L 1973, c 179, §28; am L 1975, c178, §1 and c 199, §2; am L 1977, c 191, §2; am L 1978, c 230, §1; am L 1982, c165, §2(14); gen ch 1985; am L 1987, c 117, §2; am L 1989, c 343, §4; am L1991, c 96, §1(3); am L 1992, c 160, §2; am L 1993, c 357, §1(4); am L 1994, c196, §5 and c 276, §4; am L 1997, c 211, §1 and c 374, §2; am L 1999, c 65, §3;am L 2002, c 205, §1; am L 2003, c 118, §4; am L 2004, c 177, §1 and c 179,§10; am L 2005, c 58, §7; am L 2007, c 215, §7]

 

Attorney General Opinions

 

  Upon retirement, a member with service as a judge or anelected officer is entitled to have each year of such service computed at the3-1/2% rate, regardless of the length of such service.  Att. Gen. Op. 72-19.

  Enhanced benefits of various law enforcement officers andfirefighters, discussed.  Att. Gen. Op. 90-2.

  In general, the calculation of retirement benefits ofelective officers who were elective officers on July 1, 1997, pursuant to Act374, Session Laws of Hawaii 1997, should be made thus:  the law as it existedbefore the effective date of Act 374 (July 1, 1997) is applied to serviceaccrued before the effective date of the Act (i.e., elective officers can applya high average final compensation to years of possibly multiple types ofservices, including elective service) and the amount derived from thatcalculation is added to the amount arrived at by applying the Act to serviceaccrued after the effective date of the Act (which is segregated by servicecategory).  This results in using different average final compensations forpre- and post-Act service.  Att. Gen. Op. 2000-1.

 

Case Notes

 

  Mentioned:  75 H. 42, 856 P.2d 1227.