§88-96  Rights of members separated fromservice.  (a)  Any member who ceases to be an employee and who has fewerthan five years of credited service, excluding unused sick leave, uponapplication to the board, shall be paid all of the member's accumulatedcontributions and the member's membership shall thereupon terminate and allcredited service shall be forfeited; provided that a member shall not be paidthe member's accumulated contributions:

(1)  If the member becomes an employee again withinfifteen calendar days from the date the member ceased to be an employee; or

(2)  If, at the time the application for return ofaccumulated contributions is received by the board, the member has become anemployee again.

Regular interest shall be credited to the formeremployee's account until the former employee's accumulated contributions arereturned to the former employee; provided that the former employee's membershipshall not continue after the fourth full year following the calendar year inwhich the individual's employment terminates.  Upon termination of the formeremployee's membership, the former employee's credited service shall beforfeited and, if the former employee's accumulated contributions are $1,000 orless at the time of distribution, the system shall return the former employee'scontributions to the former employee.  If the former employee does not becomean employee again and if the former employee's accumulated contributions havenot been withdrawn by the former employee or previously returned by the systemto the former employee, the system shall return the former employee'saccumulated contributions to the former employee as soon as possible after theformer employee attains age sixty-two.

(b)  Any member having five or more years ofcredited service who ceases to be an employee, upon application to the board,shall be paid all of the member's accumulated contributions and thereupon theformer employee's membership shall terminate and all credited service shall beforfeited; provided that a member shall not be paid the member's accumulatedcontributions:

(1)  If the member becomes an employee again withinfifteen calendar days from the date the member ceased to be an employee; or

(2)  If, at the time the application for return ofaccumulated contributions is received by the board, the member has become anemployee again.

If the contributions are not withdrawn by the formeremployee within four calendar years following the calendar year in which theformer employee's employment terminates, the former employee shall haveestablished vested benefit status and shall be eligible for the serviceretirement benefit in effect at the time of the former employee's retirement,payable in accordance with this chapter; provided that if the former employee withdrawsthe former employee's accumulated contributions, the former employee's vestedbenefit status shall terminate and all credited service shall be forfeited.

(c)  In case of the death of any former memberafter the termination of service, the former member's accumulated contributionsshall be payable to the former member's estate or to such person as the formermember has nominated by written designation duly executed and filed with theboard. [L 1925, c 55, §6(10); RL 1935, pt of §7925; RL 1945, §708, subs 10, 13;am L 1945, c 73, §1(f); am L 1947, c 103, §1(b), (c); RL 1955, §6-53; am L1963, c 127, §13; am L 1965, c 222, §10; HRS §88-87; am L 1969, c 110, pt of§1; am L 1982, c 165, pt of §2(15); am L 1984, c 32, §1; am L 1989, c 100, §2;am L 2004, c 179, §15; am L 2005, c 58, §12; am L 2006, c 169, §19]

 

Attorney General Opinions

 

  Returning retirants are without "vested benefitstatus".  Att. Gen. Op. 86-20.