HI SB1089

Requires employees receiving workers' compensation wage loss benefits to have retirement contributions automatically deducted from those benefit payments, changing from optional to mandatory deductions.

Establishes one-year deadlines for members to initiate service credit claims and commence payments for various types of service acquisitions, including prior service, military service, and other membership service credits.

Changes the cost calculation for acquiring additional service credit after July 1, 2020 from a simple contribution rate method to an actuarially neutral calculation based on the member's age, retirement eligibility, and other actuarial assumptions.

Adds a new section requiring contributions for unpaid leaves of absence to be made within one year after the employee returns from the leave of absence.

Applies prospectively with most requirements taking effect for members who become members after June 30, 2016, while maintaining different payment methods for claims made before and after July 1, 2020.