(a) Commencing July 1, 1996, compensation used to determine the benefit payable under section 88-84(a)(1) shall be subject to the annual limit set forth in section 401(a)(17) of the Internal Revenue Code of 1986, as amended; provided that there shall be paid to the beneficiary of any member:

Terms Used In Hawaii Revised Statutes 88-84.5

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • 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
    • (1) Who dies while in service or on authorized leave without pay after June 30, 2004, and before July 1, 2006; and
    (2) Whose compensation earned during the year immediately preceding the member’s death exceeds the annual limit set forth in section 401(a)(17) of the Internal Revenue Code of 1986, as amended,

    a nontax-qualified benefit equal to the difference between the benefit that would have been payable under section 88-84(a)(1) without applying the limit under section 401(a)(17) of the Internal Revenue Code of 1986, as amended, to compensation earned prior to July 1, 2005, and the benefit that is payable under section 88-84(a)(1) applying the limit under section 401(a)(17) of the Internal Revenue Code of 1986, as amended, to the compensation earned during the year immediately preceding the member’s death.

    (b) The nontax-qualified benefit provided by subsection(a) shall be administered by the board of trustees; provided that:

    (1) State members shall be paid by the respective department or agency that employs the member pursuant to assessments made and received by the system; and
    (2) County members shall be paid by the respective counties pursuant to assessments made and received by the system.
    (c) Section 88-91 shall apply to the nontax-qualified benefit.