Opinion ID: 6491296
Heading Depth: 3
Heading Rank: 2

Heading: In light of a subsequent change in the law, the Appellants are entitled to a hearing before the Board with respect to interest.

Text: Effective January 1, 2004, the legislature enacted HRS § 88-74.5 (Supp.2003), entitled “Finalizing of pensions,” which affords interest to any retirant 1' whose pension is “finalized” late, i.e., “after the sixth calendar month following the month of the retirant’s retirement.” See 2003 Haw. Sess. L. Act 134, §§ 1 and 4 at 318-19. HRS § 88-74.5(a), amended by Act 169, §§ 10 and 43 at 9, 88 (2006), available at http://capitol.ha-waii.gov/sessioncuiTenVbills/gb2273_cdl_.pdf, provides in relevant part: For pension benefits finalized after the sixth calendar month following the month of the retirant’s retirement, an interest payment ... shall be paid to the retirant. Interest shall be calculated on the difference between the amount the retirant is entitled to receive from the retirant’s retirement date up to the day the payment is made and the amount the retirant was paid.... Beginning January 1, 2004, or the first clay of the seventh calendar month following the month of retirement, whichever is later, interest payments calculated as simple interest shall be prorated up to the date payment is made.... “No law has any retrospective operation, unless otherwise expressed or obviously intended.” HRS § 1-3 (1993). We do not believe that HRS § 88-74.5 clearly manifests an intent on the part of the legislature to retroactively award interest for any period before January 1, 2004. Nevertheless, one who retired before 2004—such as, allegedly, the Appellants—may qualify for interest under HRS § 88-74.5, though only on whatever balance remained unpaid on “January 1, 2004, or the first day of the seventh calendar month following the month of retirement, whichever is later.” The record on appeal does not indicate whether the pensions of the Appellants or the alleged similarly situated retirants have been “finalized” or whether they have received any “payments.” Accordingly, the Appellants’ entitlement to interest turns on unanswered questions of fact, to wit, (1) whether their status as retirants is as they allege and (2) whether any “payments” to which they were entitled were overdue on or after January 1, 2004. While it might have been more efficient and prudent for the Board and the circuit court to respond to the impending change in the law (the governor signed Act 134 on June 4, 2003, see 2003 Haw. Sess. L. at 319), we can hardly consider it error to decline to enforce a law that has not taken effect (yet). On the other hand, for us to affirm the circuit court’s determination of mootness simply because the November 18, 2003 judgment “beat” the sunrise of Act 134 by forty-four days would be needlessly technical. In light of today’s holding that the Appellants might be entitled to interest, further litigation is virtually foreordained. Therefore, notwithstanding our conclusion, supra in section III. A.1, that the Appellants lacked a viable basis for costs or fees, HAR § 6-20-10(2), see supra note 6, entitles them to a hearing before the Board to establish their eligibility, or lack thereof, for interest pursuant to HRS § 88-74.5(a).