HI HB749

Amends the definition of "base pay" under Section 88-21, Hawaii Revised Statutes, to exclude reductions from furloughs or mandatory pay cuts when calculating retirement benefits.

Specifies that base pay includes normal periodic service payments, recurring differentials, and elective salary reduction contributions under Internal Revenue Code sections 125, 403(b), and 457(b), but shall not be reduced by furloughs or mandatory pay reductions.

Ensures that temporary economic hardships, such as those caused by the COVID-19 pandemic, do not negatively impact employees' average final compensation calculations for retirement purposes.

Takes effect on July 1, 2021.

Does not affect rights, duties, penalties, or proceedings that matured or were begun before the effective date.