§88-81  Average final compensation.  (a) [2007 amendment retroactive to July 1, 2006.  L 2007, c 215, §31.] Average final compensation is the average annual compensation pay or salaryupon which a member has made contributions as required by parts II, VII, andVIII of this chapter.

(b)  The average final compensation of membersshall be calculated as follows:

(1)  For employees who become members prior to January1, 1971:

(A)  During the member's five highest paidyears of credited service, including vacation pay, or the three highest paidyears of credited service excluding vacation pay, whichever is greater; or

(B)  If the member has less than three years ofcredited service, during the member's actual years of credited service.

(2)  For employees who become members on or afterJanuary 1, 1971:

(A)  During the member's three highest paidyears of credited service, excluding vacation pay; or

(B)  If the member has less than three years ofcredited service, during the member's actual years of credited service.

(c)  In computing the compensation of a judge,the compensation paid to the judge by the United States as well as by theTerritory shall be included.

(d)  For service rendered as a member of thelegislature from and after November 5, 1968, the actual annual salary of amember shall be the only amount used for determining the member's average finalcompensation.  For service rendered as a member of the legislature prior toNovember 5, 1968, and after admission of this State into the Union, the annualcompensation of a member shall be computed, for the purpose of determining themember's average final compensation, as follows: during a year in which ageneral session was held, it shall be deemed to have been an amount equal tofour times the salary of a member of the legislature for a general session; andduring a year in which a budget session was held, it shall be deemed to havebeen an amount equal to six times the salary of a member of the legislature fora budget session.  For service rendered as a member of the legislature prior tothe admission of this State into the Union, the annual compensation of a membershall be deemed to have been four times the salary of a member of thelegislature for a regular session for each year during the member's term ofoffice.

(e)  If a member has credited service renderedas an elective officer or as a legislative officer, the member's average finalcompensation shall be computed separately for each category of service asfollows:

(1)  For the three highest paid years of creditedservice as an elective officer, or if the member has less than three years ofcredited service in that capacity, then the member's actual years of creditedservice;

(2)  For the three highest paid years of creditedservice as a legislative officer, or if the member has less than three years ofcredited service in that capacity, then the member's actual years of creditedservice;

(3)  For the three highest paid years of creditedservice as a judge, or if the member has less than three years of creditedservice in that capacity, then the member's actual years of credited service;and

(4)  For the three highest paid years of creditedservice not included in paragraph (1), (2), or (3), or if the member has lessthan three years of credited service in that capacity, then the member's actualyears of credited service. [L 1963, c 127, pt of §2; Supp, pt of §6-38; pt ofHRS §§88-21 and 88-53; am L 1969, c 32, §1 and c 110, pt of §1; am L 1970, c91, §1; am L 1997, c 374, §4; am L 2002, c 128, §7; am L 2003, c 118, §5; am L2007, c 215, §11]

 

Attorney General Opinions

 

  Average finalcompensation does not include pay for temporary summer work where no retirementcontributions deducted.  Att. Gen. Op. 85-10.

  In general, thecalculation of retirement benefits of elective officers who were electiveofficers on July 1, 1997, pursuant to Act 374, Session Laws of Hawaii 1997,should be made thus:  the law as it existed before the effective date of Act374 (July 1, 1997) is applied to service accrued before the effective date ofthe Act (i.e., elective officers can apply a high average final compensation toyears of possibly multiple types of services, including elective service) andthe amount derived from that calculation is added to the amount arrived at byapplying the Act to service accrued after the effective date of the Act (whichis segregated by service category).  This results in using different averagefinal compensations for pre- and post-Act service.  Att. Gen. Op. 2000-1.