Break in service; reemployment.

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§88-273 Break in service; reemployment. (a) Any class C member who terminates service prior to accumulating ten years of credited service, excluding unused sick leave, shall cease to be a member and shall forfeit all credited service; provided that:

(1) If the former class C member becomes a member again within one full year following the calendar year in which the member's employment terminated, all service credit for previous service shall be restored. If the former class C member becomes a member again more than one full year following the calendar year in which the member's employment terminated, one month of service credit for previous service shall be restored for each month of service rendered following the return to membership; and

(2) If the former class C member becomes a class A, class B, or class H member within one full year following the calendar year in which the member's employment terminated, all class C service credit for previous service shall be restored. If the former class C member becomes a class A, class B, or class H member more than one full year following the calendar year in which the member's employment terminated, one month of class C service credit for previous service shall be restored for each month of service rendered following the return to membership.

Subject to the provisions of sections 88-322 and 88-324, the service credit restored pursuant to this subsection shall be class C service credit.

(b) Any class C member who terminates service with a vested right and who subsequently becomes a class A, class B, class C, or class H member shall retain all service credit for previous service and shall be credited with additional service credit for service rendered following the return to membership.

(c) Any retirant who retired under the provisions of this part and returns to service requiring active membership in the system as a class C member shall be reenrolled as an active member, and the retirant's retirement allowance shall be suspended. When the member again retires, the retirement allowance shall be 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 of a class C member under section 88-282 in existence at the time of the member's final retirement.

(d) Any retirant who retired under the provisions of this part and returns to service requiring active membership in the system as a class A or class B member shall be reenrolled as an active member, and the retirant's retirement allowance shall be suspended. When the member again retires, the retirement allowance shall be 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 of a class A or class B member under section 88-74 in existence at the time of the member's final retirement.

(e) 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 other related benefit provided by this chapter; and

(3) Be subject to the age and service requirements under section 88-281 when the member again retires.

(f) 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.

(g) A retirant who returns to service shall not be considered to be "in service", for the purposes of section 88-284, 88-285, or 88-286, 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.

(h) The board shall adopt any rules as may be required to administer this section. [L 1984, c 108, pt of §8; am L 1987, c 117, §4; am L 2001, c 61, §2; am L 2004, c 179, §25; am L 2006, c 169, §28; am L 2007, c 215, §19; am L 2009, c 121, §4]

Attorney General Opinions

Return to service of contributory plan retirant; computation of retirement benefits. Att. Gen. Op. 85-21.

Pursuant to this section and §88-281, former employee was a member of ERS until effective date of former employee's retirement. Att. Gen. Op. 97-12.


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