Haw. Code R. § 6-29-6 - Finalization of retirant's pension benefit; interest payment

(a) The finalized benefit of a retirant will be determined by the system upon recalculation of the retirant's pension with the payroll and personnel information received from the employer (s) within 90 days after the retirant's effective date of retirement or approval for disability retirement. Information received by the system after the retirant's benefit has been finalized, may be considered a post-finalization adjustment and is not subject to the interest specified in subsections (d) and (e).

(b) For regular service retirements, the system shall finalize a retirant's pension benefit within six calendar months following the month of the retirant's retirement when the effective date of retirement is the first day of the month, or within seven calendar months following the retirant's retirement when the effective date of retirement is December 31.

(c) For ordinary and service-connected disability retirements, the system shall finalize a retirant's pension benefit within six calendar months following the month that the member's retirement is approved by the system or the actual retirement date specified by the member, whichever is later.

(d) If the system fails to finalize a retirant's pension benefit within the times specified in subsection (a) or (b), as applicable, the system shall pay an interest payment to the retirant if the finalized pension benefit is in excess of the pension benefit that was paid to the retirant.

(e) The interest shall be calculated on the difference between the finalized pension amount the retirant was entitled to receive and the pension amount the retirant was paid, including any refund of member contributions, prorated from the retirant's retirement date or date of approval of disability retirement, whichever is later, up to the day the interest payment is made to the retirant.

(f) The interest paid shall be simple interest at a rate per year equal to the ninety day or three month United States treasury bill rate as of the end of the calendar year prior to the effective date of the retirant's finalization plus one percent.

Notes

Haw. Code R. § 6-29-6

[Eff and comp 4/11/2022] (Auth: HRS § 80-28) (Imp: HRS § 88-74.5)