SB 2555: ERS; Retirants; Employment; Succession Planning

A BILL FOR AN ACT

RELATING TO GOVERNMENT.

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 an employees' retirement system retirant may be reemployed without the suspension of the retirant's benefits and to provide remedies for the employees' retirement system if a retirant is reemployed in violation of that chapter or any administrative rule adopted thereunder.

     The legislature further finds that there is a labor shortage in the State that makes it difficult to fill certain positions in the public sector.

     Accordingly, the purpose of this Act is to include positions needed for succession planning in the types of positions that may be filled by retirants without reenrollment in the employees' retirement system and without loss or interruption of benefits.

     SECTION 2.  Section 88-9, Hawaii Revised Statutes, is amended as follows:

      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[[],[]] 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] before the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before 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;] position, or a position needed for succession planning; provided that:

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

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before 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] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant [prior to] before 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."

     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) of subsection (d), including the number and positions of retirants[.] to provide sufficient oversight to ensure that the employment determinations are consistent with applicable laws and rules."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2077.

Report Title:

ERS; Retirants; Employment; Succession Planning

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System and without loss or interruption of benefits if the retirant is employed in a position identified as one needed for succession planning.  Effective 1/1/2077.  (SD1)

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 government.

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 an employees' retirement system retirant may be reemployed without the suspension of the retirant's benefits and to provide remedies for the employees' retirement system if a retirant is reemployed in violation of that chapter or any administrative rule adopted thereunder.

     The legislature further finds that there is a labor shortage in the State that makes it difficult to fill certain positions in the public sector.

     Accordingly, the purpose of this Act is to include positions needed for succession planning in the types of positions that may be filled by retirants without reenrollment in the employees' retirement system and without loss or interruption of benefits.

     SECTION 2.  Section 88-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(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[[],[]] 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] before the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before 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;] position, or a position needed for succession planning; provided that:

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

          (B)  No agreement was entered into between the State or a county and the retirant, [prior to] before 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] before the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant [prior to] before 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."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

ERS; Retirants; Employment; Succession Planning

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System and without loss or interruption of benefits if the retirant is employed in a position identified for succession planning purposes.

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. 2169

Honolulu, Hawaii

RE:     S.B. No. 2555

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 2555 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow a retirant to be employed without reenrollment in the Employees' Retirement System and without loss or interruption of benefits if the retirant is employed in a position identified for succession planning purposes.

     Your Committee received comments on this measure from the Employees' Retirement System.

     Your Committee finds that there is a labor shortage in the State that makes it difficult to fill certain positions in the public sector, including positions needed for succession planning.  Your Committee also finds that hiring retirants who are qualified and trained for these positions allows the vacancies to be filled more efficiently.  This measure facilitates the rehiring of retirants in positions identified by the appropriate jurisdictions as those needed for succession planning by allowing the rehiring to occur without reenrollment in the Employees' Retirement System or loss or interruption of benefits.

     Your Committee acknowledges testimony by the Employees' Retirement System that the annual report on the hiring of retirants in certain positions that the Director of Human Resources of the appropriate state jurisdiction or the Human Resources Management Chief Executive of each county is required to submit to the Legislature pursuant to section 88-9, Hawaii Revised Statutes, would provide sufficient oversight to ensure that the determinations to hire retirants pursuant to this measure are consistent with applicable laws and rules.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language to clarify that the purpose of the annual report to the Legislature pursuant to section 88‑9(f), Hawaii Revised Statutes, is to provide sufficient oversight to ensure that determinations made by the jurisdictions to hire retirants in certain positions are consistent with applicable laws and rules; and

     (2)  Inserting an effective date of January 1, 2077, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2555, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2555, S.D. 1, and be referred to your Committee on Ways and Means.

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