§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 salary
upon which a member has made contributions as required by parts II, VII, and
VIII of this chapter.



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



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



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



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



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



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



(B)  If the member has less than three years of
credited 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 the
Territory shall be included.



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



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



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



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



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



(4)  For the three highest paid years of credited
service not included in paragraph (1), (2), or (3), or if the member has less
than three years of credited service in that capacity, then the member's actual
years of credited service. [L 1963, c 127, pt of §2; Supp, pt of §6-38; pt of
HRS §§88-21 and 88-53; am L 1969, c 32, §1 and c 110, pt of §1; am L 1970, c
91, §1; am L 1997, c 374, §4; am L 2002, c 128, §7; am L 2003, c 118, §5; am L
2007, c 215, §11]



 



Attorney General Opinions



 



  Average final
compensation does not include pay for temporary summer work where no retirement
contributions deducted.  Att. Gen. Op. 85-10.



  In general, the
calculation of retirement benefits of elective officers who were elective
officers 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 Act
374 (July 1, 1997) is applied to service accrued before the effective date of
the Act (i.e., elective officers can apply a high average final compensation to
years of possibly multiple types of services, including elective service) and
the amount derived from that calculation is added to the amount arrived at by
applying the Act to service accrued after the effective date of the Act (which
is segregated by service category).  This results in using different average
final compensations for pre- and post-Act service.  Att. Gen. Op. 2000-1.