HB 928 Summary

• Amends the definition of "base pay" in Hawaii's Employees' Retirement System to mean the base compensation pay rate stated in the employer's personnel file as reported to the system or the employee's personnel action report notification, rather than normal periodic payments of money for service.

• Removes "recurring differentials" from the definition of base pay but retains inclusion of elective salary reduction contributions under Internal Revenue Code sections 125, 403(b), and 457(b).

• For members who became members before July 1, 2012, "compensation" includes base pay (as redefined), overtime, differentials, supplementary payments, bonuses, and lump sum salary supplements, with bonuses and supplements exceeding one-twelfth of prior 12-month compensation spread over at least 12 months.

• For members who became members after June 30, 2012, "compensation" is limited to base pay (as redefined), elective salary reduction contributions, and twelve-month differentials for Department of Education employees, explicitly excluding overtime, bonuses, lump sum supplements, and most other differentials.

• Takes effect December 25, 2040, and applies to personnel and payroll reported after December 31, 2021.