HB 1388: RELATING TO RETIRANTS.

A BILL FOR AN ACT

RELATING TO RETIRANTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in 2010, chapter 88, Hawaii Revised Statutes, was amended to clarify the circumstances under which a retirant of the employees' retirement system may be reemployed without the suspension of the retirant's benefits and to provide remedies for the employees' retirement system if a retirant is re-employed in violation of that chapter and any administrative rule adopted thereunder.

     The legislature further finds that there is a labor shortage that makes it difficult to fill investigator positions in the department of law enforcement and department of the attorney general.

     Accordingly, the purpose of this Act is to establish an additional category of retirants who may be employed without re‑enrollment in the employees' retirement system and without loss or interruption of benefits.

     SECTION 2.  Section 88-9, Hawaii Revised Statutes, is amended in the following manner:

     1. By amending subsection (d) to read:

     "(d)  A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:

     (1)  As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);

     (2)  As a juror or precinct official;

     (3)  As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2, as the president and chief executive officer of the Hawaii tourism authority excluded from membership in the system pursuant to section 201B-2, or as any other employee expressly excluded by law from membership in the system; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement;

     (4)  In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; [or]

     (5)  As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability[.]; or

     (6)  As an investigator identified by the department of law enforcement or department of the attorney general as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of law enforcement or department of the attorney general, as applicable, shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability."

     2. By amending subsection (f) to read:

     "(f)  No later than twenty days prior to the convening of each regular legislative session, the director of human resources of the appropriate state jurisdiction or the human resources management chief executive of each county shall submit an annual report to the legislature detailing the employment of retirants under paragraphs (4) [and], (5), and (6) of subsection (d), including the number and positions of retirants."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Law Enforcement; Department of the Attorney General; Employees' Retirement System; Retirees; Benefits; Investigators; Report

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System and without loss or interruption of retirement benefits if the retirant is employed as an investigator in a position identified by the Department of Law Enforcement or Department of the Attorney General as a labor shortage or difficult—to-fill position, subject to certain conditions.  Requires the director of human resources of the appropriate state jurisdiction to include in the director's annual report to the Legislature, details on the employment of retirants as investigators.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to retirants.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in 2010, chapter 88, Hawaii Revised Statutes, was amended to clarify the circumstances under which a retirant of the employees' retirement system may be reemployed without the suspension of the retirant's benefits and to provide remedies for the employees' retirement system if a retirant is re-employed in violation of that chapter and any administrative rule adopted thereunder.

     The legislature further finds that there is a labor shortage that makes it difficult to fill investigator positions in the department of law enforcement and department of the attorney general.

     Accordingly, the purpose of this Act is to establish an additional category of retirants who may be employed without re‑enrollment in the employees' retirement system and without loss or interruption of benefits.

     SECTION 2.  Section 88-9, Hawaii Revised Statutes, is amended in the following manner:

     1. By amending subsection (d) to read:

     "(d)  A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:

     (1)  As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);

     (2)  As a juror or precinct official;

     (3)  As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2, as the president and chief executive officer of the Hawaii tourism authority excluded from membership in the system pursuant to section 201B-2, or as any other employee expressly excluded by law from membership in the system; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement;

     (4)  In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; [or]

     (5)  As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability[.]; or

     (6)  As an investigator identified by the department of law enforcement or department of the attorney general as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of law enforcement or department of the attorney general, as applicable, shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability."

     2. By amending subsection (f) to read:

     "(f)  No later than twenty days prior to the convening of each regular legislative session, the director of human resources of the appropriate state jurisdiction or the human resources management chief executive of each county shall submit an annual report to the legislature detailing the employment of retirants under paragraphs (4) [and], (5), and (6) of subsection (d), including the number and positions of retirants."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Department of Law Enforcement; Department of the Attorney General; Employees' Retirement System; Retirees; Benefits; Investigators; Report

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System and without loss or interruption of retirement benefits if the retirant is employed as an investigator in a position identified by the Department of Law Enforcement or Department of the Attorney General as a labor shortage or difficult—to-fill position, subject to certain conditions.  Requires the director of human resources of the appropriate state jurisdiction to include in the director's annual report to the Legislature, details on the employment of retirants as investigators.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  535

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1388

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1388 entitled:

"A BILL FOR AN ACT RELATING TO RETIRANTS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an additional category of retirants who may be employed without re-enrollment in the Employees' Retirement System and without loss or interruption of benefits for positions that are recognized by the Department of Law Enforcement or Department of the Attorney General as labor shortage or difficult-to-fill positions; and

     (2)  Require the Director of Human Resources of the appropriate state jurisdiction to include details on the employment of retirants as investigators in the annual report to the Legislature.

     Your Committee received testimony in support of this measure from the Department of the Attorney General and Department of Law Enforcement.  Your Committee received comments on this measure from the Employees' Retirement System.

     Your Committee finds that the public sector of the State is experiencing a labor shortage and has instituted various methods to fill vacancies with qualified candidates.  Your Committee believes that retirants are valuable and experienced candidates that can be used to fill investigator vacancies in the Department of Law Enforcement and Department of the Attorney General.

     Your Committee has amended this measure accordingly by changing the effective date to July 1, 3000, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1388, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1388, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor,