(a) Average final compensation is the average annual compensation, pay, or salary upon which a member has made contributions as required by parts II, VII, and VIII of this chapter.

Terms Used In Hawaii Revised Statutes 88-81

  • 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
  • Legislative officer: means a chief clerk, an assistant chief clerk, a sergeant at arms, or an assistant sergeant at arms of either house of the legislature. See Hawaii Revised Statutes 88-21
(b) The average final compensation of members shall be calculated as follows:

(1) For employees who become members before January 1, 1971:

(A) During the member’s five highest paid years of credited service, including vacation pay, or the three highest paid years of credited service excluding vacation pay, whichever is greater; or
(B) If the member has fewer than three years of credited service, during the member’s actual years of credited service;
(2) For employees who become members after December 31, 1970, but before July 1, 2012:

(A) During the member’s three highest paid years of credited service, excluding vacation pay; or
(B) If the member has fewer than three years of credited service, during the member’s actual years of credited service; and
(3) For employees who become members after June 30, 2012:

(A) During the member’s five highest paid years of credited service, excluding vacation pay; or
(B) If the member has fewer than five years of credited service, during the member’s actual years of credited service.
(c) In computing the compensation of a judge, the compensation paid to the judge by the United States as well as by the Territory shall be included.
(d) For service rendered as a member of the legislature from and after November 5, 1968, the actual annual salary of a member shall be the only amount used for determining the member’s average final compensation. For service rendered as a member of the legislature prior to November 5, 1968, and after admission of this State into the Union, the annual compensation of a member shall be computed, for the purpose of determining the member’s average final compensation, as follows:

(1) During a year in which a general session was held, it shall be deemed to have been an amount equal to four times the salary of a member of the legislature for a general session; and
(2) During a year in which a budget session was held, it shall be deemed to have been an amount equal to six times the salary of a member of the legislature for a budget session.

For service rendered as a member of the legislature prior to the admission of this State into the Union, the annual compensation of a member shall be deemed to have been four times the salary of a member of the legislature for a regular session for each year during the member’s term of office.

(e) If a member, who became a member before July 1, 2012, has credited service rendered as an elective officer or as a legislative officer, the member’s average final compensation shall be computed separately for each category of service as follows:

(1) For the three highest paid years of credited service as an elective officer, or if the member has fewer than three years of credited service in that capacity, then the member’s actual years of credited service;
(2) For the three highest paid years of credited service as a legislative officer, or if the member has fewer than three years of credited service in that capacity, then the member’s actual years of credited service;
(3) For the three highest paid years of credited service as a judge, or if the member has fewer than three years of credited service in that capacity, then the member’s actual years of credited service; and
(4) For the three highest paid years of credited service not included in paragraph (1), (2), or (3), or if the member has fewer than three years of credited service in that capacity, then the member’s actual years of credited service.
(f) If a member, who becomes a member after June 30, 2012, has credited service rendered as an elective officer or as a legislative officer, the member’s average final compensation shall be computed separately for each category of service as follows:

(1) For the five highest paid years of credited service as an elective officer, or if the member has fewer than five years of credited service in that capacity, then the member’s actual years of credited service;
(2) For the five highest paid years of credited service as a legislative officer, or if the member has fewer than five years of credited service in that capacity, then the member’s actual years of credited service;
(3) For the five highest paid years of credited service as a judge, or if the member has fewer than five years of credited service in that capacity, then the member’s actual years of credited service; and
(4) For the five highest paid years of credited service not included in paragraph (1), (2), or (3), or if the member has fewer than five years of credited service in that capacity, then the member’s actual years of credited service.
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