HB 101 Summary

• Allows service credit and compensation awarded through court decisions, arbitration, or administrative proceedings to count toward retirement benefits calculations in the Employees' Retirement System.

• Defines "final adjudication of a court of competent jurisdiction" to include court decisions, stipulated judgments, court-approved settlements, arbitrator decisions, and other final resolutions from which no appeal may be filed or has been filed within allowed timeframes.

• Requires employees to contribute to the retirement system based on applicable rates for the period of retroactive employment, and requires employers to contribute with compound interest at the actuarial valuation rate.

• For terminated employees, requires repayment of any refunded employee contributions and any service or disability allowances that were paid at the time of termination before becoming entitled to membership rights and service credit.

• Amends the definition of "base pay" and "service" in Chapter 88, Hawaii Revised Statutes, to include back pay and pay differentials awarded through legal or arbitral proceedings.