§88-98  Return to service of a retirant. 
(a)  Any retirant who returns to employment requiring active membership in the
system shall be reenrolled as an active member of the system in the same class
from which the retirant originally retired and the retirant's retirement
allowance shall be suspended.



(1)  If the retirant returns to service before July 1,
1998, and again retires, the retirant's retirement allowance shall consist of:



(A)  For members with fewer than three years of
credited service during the member's period of reemployment, the allowance to
which the member was entitled under the retirement allowance option selected
when the member previously retired and which was suspended; plus, for the
period of service during the member's reemployment, the allowance to which the
member is entitled for that service based on the retirement allowance option
initially selected and computed for the member's age, average final
compensation, and other factors in accordance with the benefit formula under
section 88-74 in existence at the time of the member's latest retirement; or



(B)  For members with three or more years of
credited service during the member's period of reemployment, the allowance
computed as if the member were retiring for the first time; provided that in no
event shall the allowance be less than the amount determined in accordance with
subparagraph (A); and



(2)  If the retirant returns to service after June 30,
1998, and again retires, the retirant's retirement allowance shall be computed
in accordance with paragraph (1)(A), regardless of the number of years of
service in the reemployment period.



(b)  Any retirant who received the special
retirement incentive benefit under Act 253, Session Laws of Hawaii 2000, as
amended by Act 131, Session Laws of Hawaii 2002, and is reemployed by the State
or a county in any capacity shall:



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



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



(3)  Be subject to the age and service requirements
under section 88-73 when the member again retires.



(c)  If a retirant's maximum retirement
allowance upon the retirant's initial retirement was subject to the limits on
maximum retirement allowance under section 88-74:



(1)  The limit shall apply to the computation of the
retirant's maximum retirement allowance for the retirant's period of service
during the retirant's reemployment, so that the sum of:



(A)  The per cent by which the retirant's
average final compensation for the retirant's years of service prior to the
retirant's initial retirement is multiplied to determine the retirant's maximum
retirement allowance upon the retirant's initial retirement; and



(B)  The per cent by which the retirant's
average final compensation for any period of reemployment after the retirant's
initial retirement is multiplied to determine the retirant's maximum retirement
allowance for the period of reemployment,



shall not exceed the limit, under section 88-74,
on the per cent by which the retirant's average final compensation may be
multiplied for the purpose of determining the retirant's maximum retirement
allowance.  For example, if a retirant's maximum retirement allowance upon the
retirant's initial retirement was limited by section 88-74 to eighty per cent
of the retirant's average final compensation, and the retirant retired with a
maximum allowance equal to seventy per cent of the retirant's average final
compensation, the retirant's maximum allowance for the retirant's period of
reemployment may not exceed ten per cent of the retirant's average final
compensation for the retirant's period of reemployment; and



(2)  If the retirant's maximum retirement allowance
upon the retirant's initial retirement was equal to or greater than the
applicable limit under section 88-74, the retirant shall not earn service
credit or earn any additional retirement allowance during the retirant's period
of reemployment, and the reemployed retirant shall not make any contributions
under section 88-45.



(d)  If a retirant's designation of beneficiary
was irrevocable upon the retirant's initial retirement, the retirant may not
change the retirant's designated beneficiary when the retirant returns to
service or when the former retirant again retires.



(e)  A retirant who returns to service shall
not be considered to be "in service", for the purposes of section 88-75,
88-79, 88-84, or 88-85, or any other provision of this chapter providing for
benefits arising out of the disability or death of a member.  A retirant who
returns to service and dies during the period of reemployment shall be
considered to have retired again effective as of the first day of the month
following the month in which the death occurs, except for death during the
month of December when the effective date of retirement may be the last day of
the month.



(f)  The board shall adopt any rules as may be
required to administer this section. [L 1974, c 108, §1; gen ch 1985; am L
1987, c 118, §2; am L 1998, c 151, §10; am L 2001, c 61, §1; am L 2006, c 169,
§20; am L 2007, c 215, §17; am L 2009, c 121, §3]



 



Attorney General Opinions



 



  Return to service of
contributory plan retirant; participation in noncontributory plan.  Att. Gen.
Op. 85-21.



 



Case Notes



 



  Under this section
(1993), for a member who retired for a second time, the only deductions
authorized from the member's maximum monthly retirement allowance were
deductions of the actuarial equivalent of the member's accumulated
contributions when the member withdrew them upon the member's first and second
retirements, and paragraph (2) (1993) did not authorize a reduction for the
total of the monthly payments received by the member during the member's first
retirement before the member's second employment.  89 H. 70 (App.), 968 P.2d
1081.