OHA trustees consider
retirement benefits

A new law allows them to join
the state workers' pension fund

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By Pat Omandam
pomandam@starbulletin.com

Office of Hawaiian Affairs trustees have until next Monday to decide if they want to join the state Employees' Retirement System under a new state law that puts trustees on equal retirement footing as other elected state officials.

It is the first time in more than two decades other elected officials were added to the state pension fund, said Clyde Namuo, OHA administrator.

"It is quite historical, if you think about it," Namuo told the board at a briefing by ERS officials yesterday.

Trustees were briefed yesterday by ERS administrator David Shimabukuro and his staff on the new law, which OHA trustees had wanted from the state Legislature for many years.

The law is retroactive to July 1, 2002, and allows any current or future trustee to voluntarily join the ERS.

What's more, trustees can be credited for years served on the board from July 1, 1993. But they have to make additional payments to ERS to buy back those years so they count toward retirement.

The law, however, doesn't apply to trustees who retired before July 1, 2002.

The best example of this exclusion is A. Frenchy DeSoto, who resigned in September 2000 from OHA after having served as a trustee for most of the past 22 years.

"The purpose of this bill was to allow the OHA trustees to be treated like all other elected officials," Shimabukuro said.

Karl Kaneshiro, ERS benefits manager, said trustees are entitled to a 3.5 percent retirement benefit for each year of OHA service along with a monthly annuity based on their contributions to the ERS.

Trustees must pay 7.8 percent of their salary into the fund and are eligible to draw ERS benefits after 10 years of service before age 55 or a minimum of five years of service at age 55.

Rowena Akana was excited at finally getting state retirement benefits and eager to find the quickest way to get vested in the system.

Akana and Clayton Hee are OHA's senior trustees, each with 12 years of service.

"I personally don't want to serve two more terms just to get retirement benefits," Akana said. "I've already served 12 years."