(a) Under rules as the board may adopt, any member may file with the system a statement of all service as an employee or other service paid for by the State or a county rendered prior to the member’s last becoming a member that is not credited to the member, for which the member claims prior service credit, and also a statement of the services for which the member claims membership service credit and for which the member agrees to have additional deductions made from the member’s compensation or to make a lump sum payment as described in this section.
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Hawaii Revised Statutes 88-59

  • compensation: as used in this part means:
    (A) Normal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed;
    (B) Overtime, differentials, and supplementary payments;
    (C) Bonuses and lump sum salary supplements;
    (D) Elective salary reduction contributions under sections 125, 403(b), and 457(b) of the Internal Revenue Code of 1986, as amended; and
    (E) Retroactive payments of those purposes and nature authorized in subparagraphs (A) through (D), and certified as compensation pursuant to section 88-64;
    (2) Bonuses and lump sum salary supplements shall be deemed earned when payable; provided that bonuses or lump sum salary supplements in excess of one-twelfth of compensation for the twelve months before the month in which the bonus or lump sum salary supplement is payable, exclusive of overtime, bonuses, and lump sum salary supplements, shall be deemed earned:
    (A) During the period agreed-upon by the employer and employee, but in any event over a period of no less than twelvemonths; or
    (B) In the absence of an agreement between the employer and the employee, over the twelvemonths before the date on which the bonus or lump sum salary supplement is payable; and
    (3) Retroactive payments shall be deemed earned when it would have been earned, as determined by the system pursuant to section 88-64. See Hawaii Revised Statutes 88-21.5
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
(b) After the filing of the statement, the board shall verify the service claimed and determine the service credit allowable. Verified prior service shall be credited. Verified membership service shall be paid for by the member in any one of the following methods, at the member’s option:

(1) If deductions commence or the lump sum payment is made prior to July 1, 2020:

(A) By deductions from the member’s compensation pursuant to section 414(h)(2) of the Internal Revenue Code of 1986, as amended, under the employer pick up plan under § 88-46. An irrevocable payroll authorization filed by the member for a period not to exceed sixty months shall remain in effect until the completion of the payroll payments or termination of employment, whichever is earlier. The member may elect to have:

(i) Deductions from the member’s compensation of twice the contribution rate provided for in § 88-45 over a period equal to the period for which membership service credit is allowable not to exceed sixty months; or
(ii) Deductions from the member’s compensation of one and one-half times the contribution rate provided for in § 88-45 over a period equal to twice the period for which membership service credit is allowable not to exceed sixty months; or
(B) By lump sum payment of contributions computed at the contribution rate provided for in § 88-45 applied to the member’s monthly rate of compensation at the time of payment multiplied by the number of months for which membership service credit is allowable; provided that after July 1, 1982, this method shall not be available to any new member with fewer than five years of membership service exclusive of any previous service acquired under subparagraph (A).
(2) If the payment is made after June 30, 2020, by lump sum payment equal to the actuarial cost of the membership service to be credited; provided that the member has at least five years of membership exclusive of any previous service acquired under paragraph (1).

The actuarial cost of the membership service to be credited shall be determined by the actuary for the system based on the age of the member in full years as of the date the claim for service credit is made, the investment yield rate assumption in effect as of the date the claim for service credit is made, the retirement age eligibility requirements and retirement allowance provisions applicable to the member, and other actuarial assumptions adopted by the board in effect as of the date the claim for service credit is made.

The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member’s individual account and become part of the member’s accumulated contributions.

(c) Membership service credit, in addition to any other service credited to the member, shall be allowed for the period for which the deductions from compensation or lump sum payment have been made as described in this section; provided that payment shall commence within one year after the system notifies the member that the service claimed has been verified and that service credit is allowable; provided further that, for a member who becomes a member after June 30, 2016:

(1) Membership service credit for prior service or for service rendered prior to the member’s last becoming a member shall be claimed within one year after the member enters service;
(2) Membership service credit for military service pursuant to section 88-132.5 shall be claimed within one year after the member meets the requirements of section 88-132.5(a) or (b); and
(3) Any other membership service credit acquired pursuant to this section shall be claimed within one year after the member becomes eligible to receive the service credit upon satisfaction of the requirements of this section.
(d) The contribution rates under § 88-45 shall be reduced by one and eight-tenths per cent for any service being claimed prior to July 1, 2020, that was rendered prior to July 1, 1961.

  Previous
Next  
 MEMBERSHIP; SERVICE Contents