HI SB2888

Amends Hawaii Revised Statutes Section 88-21.5 to remove differentials, supplementary payments, bonuses, and lump sum salary supplements from the definition of "compensation" for public employees' retirement system purposes.

Eliminates the previous provision allowing bonuses and lump sum salary supplements in excess of one-twelfth of annual compensation to be spread over 12 months or more for retirement calculation purposes.

Effective July 1, 2010, excludes earnings from compensatory time accrued under collective bargaining agreements or chapter 89C agreements from being counted as compensation for retirement purposes.

Retains overtime and elective salary reduction contributions under Internal Revenue Code sections 125, 403(b), and 457(b) as part of compensation definition.

Takes effect on July 1, 2010, and does not affect rights, duties, or proceedings that began before the effective date.