§88-98  Return to service of a retirant. (a)  Any retirant who returns to employment requiring active membership in thesystem shall be reenrolled as an active member of the system in the same classfrom which the retirant originally retired and the retirant's retirementallowance 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 ofcredited service during the member's period of reemployment, the allowance towhich the member was entitled under the retirement allowance option selectedwhen the member previously retired and which was suspended; plus, for theperiod of service during the member's reemployment, the allowance to which themember is entitled for that service based on the retirement allowance optioninitially selected and computed for the member's age, average finalcompensation, and other factors in accordance with the benefit formula undersection 88-74 in existence at the time of the member's latest retirement; or

(B)  For members with three or more years ofcredited service during the member's period of reemployment, the allowancecomputed as if the member were retiring for the first time; provided that in noevent shall the allowance be less than the amount determined in accordance withsubparagraph (A); and

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

(b)  Any retirant who received the specialretirement incentive benefit under Act 253, Session Laws of Hawaii 2000, asamended by Act 131, Session Laws of Hawaii 2002, and is reemployed by the Stateor a county in any capacity shall:

(1)  Have the retirant's retirement allowancesuspended;

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

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

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

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

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

(B)  The per cent by which the retirant'saverage final compensation for any period of reemployment after the retirant'sinitial retirement is multiplied to determine the retirant's maximum retirementallowance 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 bemultiplied for the purpose of determining the retirant's maximum retirementallowance.  For example, if a retirant's maximum retirement allowance upon theretirant's initial retirement was limited by section 88-74 to eighty per centof the retirant's average final compensation, and the retirant retired with amaximum allowance equal to seventy per cent of the retirant's average finalcompensation, the retirant's maximum allowance for the retirant's period ofreemployment may not exceed ten per cent of the retirant's average finalcompensation for the retirant's period of reemployment; and

(2)  If the retirant's maximum retirement allowanceupon the retirant's initial retirement was equal to or greater than theapplicable limit under section 88-74, the retirant shall not earn servicecredit or earn any additional retirement allowance during the retirant's periodof reemployment, and the reemployed retirant shall not make any contributionsunder section 88-45.

(d)  If a retirant's designation of beneficiarywas irrevocable upon the retirant's initial retirement, the retirant may notchange the retirant's designated beneficiary when the retirant returns toservice or when the former retirant again retires.

(e)  A retirant who returns to service shallnot 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 forbenefits arising out of the disability or death of a member.  A retirant whoreturns to service and dies during the period of reemployment shall beconsidered to have retired again effective as of the first day of the monthfollowing the month in which the death occurs, except for death during themonth of December when the effective date of retirement may be the last day ofthe month.

(f)  The board shall adopt any rules as may berequired to administer this section. [L 1974, c 108, §1; gen ch 1985; am L1987, 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 ofcontributory 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 deductionsauthorized from the member's maximum monthly retirement allowance weredeductions of the actuarial equivalent of the member's accumulatedcontributions when the member withdrew them upon the member's first and secondretirements, and paragraph (2) (1993) did not authorize a reduction for thetotal of the monthly payments received by the member during the member's firstretirement before the member's second employment.  89 H. 70 (App.), 968 P.2d1081.