HI SB1354

Replaces the flat post-retirement allowance percentage structure with a graduated schedule based on years in retirement, effective July 1, 2013.

Establishes graduated percentages: 1.25% in second year of retirement, 1.50% in eleventh year, 2.00% in twenty-first year, 2.50% in twenty-fifth year, and 3.00% in twenty-sixth year and thereafter.

Applies to post-retirement allowances calculated as a percentage of the original monthly pension, annuity, or retirement allowance, paid annually on July 1.

Maintains existing provisions for employees who became members before July 1, 2012, while establishing new graduated structure for future retirees under the amended Section 88-90.