Federal Social Security for Public Employees

HRS div. 1, tit. 7, ch. 88, pt. VI

in effect

HRS §88-211 Definitions

88-211. Definitions For the purposes of this part: "Employee" includes an officer of the State or political subdivision thereof. "Employment" means any service performed by an employee in the employ of the State, or any political subdivision thereof, for that employer, except: (1) Service that, in the absence of an agreement entered into under this part, would constitute "employment" as defined in the Social Security Act; or (2) Service that under the Social Security Act may not be included in an agreement between the State and the Department of Health and Human Services entered into under this part. Service that under the Social Security Act may be included in an agreement only upon certification by the governor in accordance with section 218(d)(3) of that Act shall be included in the term "employment" if and when the governor issues, with respect to the service, a certificate to the Secretary of Health and Human Services pursuant to section 88-219. "Federal Insurance Contributions Act" means subchapter A of chapter 9 of the Internal Revenue Code of 1939 and subchapters A and B of chapter 21 of the Internal Revenue Code of 1954, as those Codes have been and may from time to time be amended; and the term "employee tax" means the tax imposed by section 1400 of the Code of 1939 and section 3101 of the Code of 1954. "Political subdivision" includes an instrumentality of the State, of one or more of its political subdivisions, or of the State and one or more of its political subdivisions, but only if the instrumentality is a juristic entity that is legally separate and distinct from the State or subdivision and only if its employees are not by virtue of their relation to the juristic entity employees of the State or subdivision. "Secretary of Health and Human Services" includes an individual to whom the Secretary of Health and Human Services has delegated any of the Secretary's functions under the Social Security Act with respect to coverage under the Act of employees of the states and territories and their political subdivisions. "Social Security Act" means the Act of Congress approved August 14, 1935, chapter 531, 49 Statutes At Large 620, officially cited as the "Social Security Act", (including regulations and requirements issued pursuant thereto), as that Act has been and may from time to time be amended. "State agency" means the executive director of the state employees' retirement system. "Wages" means all remuneration for employment as defined in this section, including the cash value of all remuneration paid in any medium other than cash, except that the term shall not include that part of the remuneration that, even if it were for "employment" within the meaning of the Federal Insurance Contributions Act, would not constitute "wages" within the meaning of that Act. [L 1953, c 217, §2; RL 1955, §6-190; am L 1957, c 284, §§2, 3; HRS §88-211; gen ch 1985; am L 1993, c 6, §6; am L 2004, c 176, §5; am L 2013, c 23, §5; am L 2017, c 12, §7]

HRS §88-213 Division of retirement systems

88-213. Division of retirement systems The employees' retirement system (or such components thereof as may be established by the governor or the governor's agent pursuant to section 218(d)(6) of the Social Security Act) shall, for the purpose of this chapter, be deemed to constitute two retirement systems as provided in, and in accordance with, section 218(d)(6) one of which is composed of the members of the system who have expressed a desire to be covered under the Social Security Act and the other of which is composed of the members of the system who have not expressed a desire for such coverage. Upon request of the governing body of any political subdivision operating a retirement system, the membership of its retirement system may likewise be divided. [L 1957, c 284, §5; Supp, §6-191.5; HRS §88-213; gen ch 1985]

HRS §88-214 Modifications to agreement

88-214. Modifications to agreement The state agency may enter into such modification or modifications to the agreement as may be necessary to transfer members of the part of a divided retirement system which is composed of the members of the system who have not expressed a desire for coverage under the Social Security Act to the part of the system which is composed of the members who have expressed a desire for the coverage in accordance with section 218(d)(6)(F) of the Social Security Act. [L 1959, c 194, §1; Supp, §6-191.6; HRS §88-214]

HRS §88-215 Contributions by state employees

88-215. Contributions by state employees Every state employee whose services are covered by an agreement entered into under section 88-212 shall be required to pay for the period of the coverage, into the contribution fund established by section 88-224, contributions, with respect to wages (as defined in section 88-211) equal to the amount of the employee tax which would be imposed by the Federal Insurance Contributions Act if the services constituted employment within the meaning of that Act. Such liability shall arise in consideration of the employee's retention in the service of the State, or the employee's entry upon such service, after June 10, 1953. [L 1953, c 217, §4(a); RL 1955, §6-192; am L 1957, c 284, §7; HRS §88-215; gen ch 1985]

HRS §88-216 Collection of contributions

88-216. Collection of contributions The contribution imposed by section 88-215 shall be collected by deducting the amount of the contribution from wages as and when paid. Failure to make the deduction shall not relieve the employee from liability for the contribution. [L 1953, c 217, §4(b); RL 1955, §6-193; HRS §88-216]

HRS §88-217 Adjustments

88-217. Adjustments If more or less than the correct amount of the contribution imposed by section 88-215 is paid or deducted with respect to any remuneration, proper adjustments, or refund if adjustment is impracticable, shall be made, without interest, in such manner and at such times as the state agency shall prescribe. [L 1953, c 217, §4(c); RL 1955, §6-194; HRS §88-217]

HRS §88-218 Plans for coverage of employees of political subdivision

88-218. Plans for coverage of employees of political subdivision Each political subdivision of the State may submit for approval by the state agency a plan for extending the benefits of Title II of the Social Security Act, in conformity with applicable provisions of the Act, to employees of the political subdivision. Each plan and any amendment thereof shall be approved by the state agency if it finds that the plan, or the plan as amended, conforms with such requirements provided in regulations of the state agency, except that no plan shall be approved unless: (1) It conforms with the requirements of the Social Security Act and with the agreement entered into under section 88-212; (2) It provides that all services which constitute employment as defined in section 88-211 and are performed in the employ of the political subdivision by employees thereof, shall be covered by the plan, except that it may exclude services performed by individuals to whom section 218(c)(3)(C) of the Social Security Act is applicable; (3) It specifies the source or sources from which the funds necessary to make the payments required by section 88-221 and by section 88-223 are expected to be derived and contains reasonable assurance that the sources will be adequate for the purpose; (4) It provides for such methods of administration of the plan by the political subdivision as are found by the state agency to be necessary for the proper and efficient administration of the plan; (5) It provides that the political subdivision will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the Secretary of Health and Human Services may from time to time find necessary to assure the correctness and verification of the reports; (6) It authorizes the state agency to terminate the plan in its entirety, in the discretion of the state agency, if it finds that there has been a failure to comply substantially with any provision contained in the plan, the termination to take effect at the expiration of the notice and on such conditions as may be provided by regulations of the state agency and may be consistent with the provisions of the Social Security Act. [L 1953, c 217, §5(a); RL 1955, §6-195; am L 1957, c 284, §§3, 8; HRS §88-218; am L 2004, c 176, §5]

HRS §88-219 Referendum

88-219. Referendum With respect to any state retirement system to which this part applies or to any retirement system of a political subdivision whose governing body so requests, the governor is empowered to authorize a referendum, and shall designate an agency or individual to supervise its conduct, in accordance with the requirements of section 218(d)(3) of the Social Security Act, on the question of whether service in positions covered by a retirement system established by the State, or by a political subdivision thereof should be excluded from or included under an agreement under this part. The notice of referendum required by section 218(d)(3)(C) of the Social Security Act to be given to employees shall contain or shall be accompanied by a statement, in such form and such detail as the agency or the individual designated to supervise the referendum shall deem necessary and sufficient to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this part. Upon receiving evidence satisfactory to the governor that with respect to any such referendum the conditions specified in section 218(d)(3) of the Social Security Act have been met, the governor shall so certify to the Secretary of Health and Human Services. [L 1957, c 284, §10; Supp, §6-195.5; HRS §88-219; gen ch 1985; am L 2004, c 176, §5]

HRS §88-221 Payments by political subdivisions

88-221. Payments by political subdivisions Each political subdivision whose plan has been approved under section 88-218 shall pay to the contribution fund, with respect to wages (as defined in section 88-211), at such time or times as the state agency may by regulation prescribe, contributions in the amounts and at the rates specified in the applicable agreement entered into by the state agency under section 88-212. [L 1953, c 217, pt of §5(c); RL 1955, §6-197; HRS §88-221]

HRS §88-223 Delinquent payments

88-223. Delinquent payments Delinquent payments due under section 88-221 may, with interest at the rate of six per cent a year, be recovered by action in the circuit court against the political subdivision liable therefor or may, at the request of the state agency, be deducted from any other moneys payable to such subdivision by any state department or agency. [L 1953, c 217, §5(d); RL 1955, §6-199; HRS §88-223]

HRS §88-224 Contribution fund; established

88-224. Contribution fund; established There is established a special fund to be known as the contribution fund. The fund shall consist of and there shall be deposited in such fund: (1) All contributions, interest, and penalties collected under sections 88-215 and 88-221 to 88-223; (2) All moneys appropriated thereto under this part; (3) Any property or securities and earnings thereof acquired through the use of moneys belonging to the fund; (4) Interest earned upon any moneys in the fund; and (5) All sums recovered upon the bond of the custodian or otherwise for losses sustained by the fund and all other moneys received for the fund and from any other source. All moneys in the fund shall be mingled and undivided. Subject to the provisions of this part, the state agency is vested with full power, authority and jurisdiction over the fund, including all moneys and property or securities belonging thereto, and may perform any and all acts whether or not specifically designated, which are necessary to the administration thereof and are consistent with this part. [L 1953, c 217, §6(a); RL 1955, §6-200; HRS §88-224]

HRS §88-225 Purpose of contribution fund

88-225. Purpose of contribution fund The contribution fund shall be established and held separate and apart from any other state funds or moneys and shall be used and administered exclusively for the purpose of this part. Withdrawals from the fund shall be made for, and solely for (1) payment of amounts required to be paid to the Secretary of the Treasury pursuant to an agreement entered into under section 88-212; (2) payment of refunds provided for in section 88-217; and (3) refunds of overpayments, not otherwise adjustable, made by a political subdivision or instrumentality. [L 1953, c 217, §6(b); RL 1955, §6-201; HRS §88-225]

HRS §88-227 Custodian of fund

88-227. Custodian of fund The state director of finance shall be ex officio treasurer and custodian of the contribution fund and shall administer the fund in accordance with this part and the directions of the state agency and shall pay all warrants drawn upon it in accordance with sections 88-225 and 88-226 and with such regulations as the state agency may prescribe pursuant thereto. [L 1953, c 217, §6(d); RL 1955, §6-203; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §88-227]

HRS §88-228 Appropriations to contribution fund

88-228. Appropriations to contribution fund (a) There are hereby authorized to be appropriated to the contribution fund, in addition to the contributions collected and paid into the contribution fund under sections 88-215 and 88-221 to 88-223, to be available for the purposes of sections 88-225 and 88-226 until expended, such additional sums as are found to be necessary in order to make the payments to the Secretary of the Treasury which the State is obligated to make pursuant to an agreement entered into under section 88-212. (b) The state agency shall submit to the director of finance at such time preceding each regular session of the legislature as the director may prescribe, an estimate of the amounts authorized to be appropriated to the contribution fund by subsection (a) of this section for the next appropriation period. [L 1953, c 217, §6(e); RL 1955, §6-204; am L Sp 1959 1st, c 13, §3; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §88-228; gen ch 1985]

HRS §88-229 Rules and regulations

88-229. Rules and regulations The state agency shall make and publish such rules and regulations, not inconsistent with this part, as it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this part. [L 1953, c 217, §8; RL 1955, §6-205; HRS §88-229]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0088/HRS_0088-.htmFetched: 11/10/2026