SB 2872: DOE; Retirants; Benefits; Exemption; Teachers; Administrators; Rules

A BILL FOR AN ACT

RELATING TO RETIRED EDUCATION EMPLOYEES.

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

     SECTION 1.  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; 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 school 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[.]; and

          (D)  A retirant hired after June 30, 2026:

               (i)  Shall receive the entry level salary for the teacher or administrator position as negotiated in the collective bargaining unit contract for that position; and

              (ii)  Shall not be eligible for benefits typically afforded to active employees pursuant to chapter 78."

     SECTION 2.  The department of education shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this Act, including establishing:

     (1)  Procedures to identify teacher and administrator shortage areas and difficult-to-fill positions; and

     (2)  Guidelines for hiring retirants in accordance with collective bargaining agreements.

     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:

DOE; Retirants; Benefits; Exemption; Teachers; Administrators; Rules

Description:

Repeals the requirement that retirants rehired as teachers or administrators serve in a teacher shortage area identified by the Department of Education.  Requires retirants rehired after 6/30/2026 as teachers or administrators in Department or charter schools to be paid the entry level salary for the teacher or administrator position as negotiated in the collective bargaining unit contract.  Prohibits retirants rehired after 6/30/2026 from receiving additional employment benefits.  Requires the DOE to adopt rules.  (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 retired EDUCATION EMPLOYEES.

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

     SECTION 1.  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; 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 or difficult-to-fill position 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[.];

          (D)  The retirant shall receive the entry level salary for the teacher or administrator position as negotiated in the collective bargaining unit contract for that position; and

          (E)  The retirant shall not be eligible for benefits typically afforded to active employees pursuant to chapter 78."

     SECTION 2.  The department of education shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this Act, including establishing:

     (1)  Procedures to identify teacher and administrator shortage areas and difficult-to-fill positions; and

     (2)  Guidelines for hiring retirants in accordance with collective bargaining agreements.

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

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

DOE; Retirants; Benefits; Exemption; Teachers; Administrators; Difficult-to-Fill Positions; Rules

Description:

Requires retirants rehired as teachers or administrators in shortage areas or in difficult-to-fill positions to be paid the entry level salary for the teacher or administrator position as negotiated in the collective bargaining unit contract.  Prohibits rehired retirants from receiving additional employment benefits.  Requires the Department of Education to adopt rules.

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. 2220

Honolulu, Hawaii

RE:     S.B. No. 2872

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Education and Labor and Technology, to which was referred S.B. No. 2872 entitled:

"A BILL FOR AN ACT RELATING TO RETIRED EDUCATION EMPLOYEES,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require retirants rehired as teachers or administrators in shortage areas or in difficult-to-fill positions to be paid the entry level salary for the teacher or administrator position as negotiated in the collective bargaining unit contract;

     (2)  Prohibit rehired retirants from receiving additional employment benefits; and

     (3)  Require the Department of Education to adopt rules.

     Your Committees received testimony in support of this measure from the Department of Education, State Public Charter School Commission, and one individual.

     Your Committees received comments on this measure from the Department of the Attorney General, Employees' Retirement System, and Hawaiʻi State Teachers Association.

     Your Committees find that the State is facing a chronic educator shortage that threatens the stability and quality of the educational system.  Shortages identified by the Department of Education in rural and underserved areas are especially severe and harmful to students' educations.  Retired teachers are uniquely suited to fill the educator gap due to their experience, institutional knowledge, and expertise.  This measure facilitates the rehiring of retired educators to support access to high‑quality education for local students. 

     Your Committees note that the educator shortage is a persistent, systemic issue that often affects classrooms beyond identified teacher shortage areas or difficult-to-fill positions.  Meaningfully addressing the shortage requires innovative solutions that afford schools greater flexibility to fill gaps. 

     Accordingly, your Committees have amended this measure by:

     (1)  Amending language in existing law to clarify that a retirant may be employed without reenrollment in the Employees' Retirement System or suffering a loss or interruption of benefits if the retirant is employed as a teacher or an administrator in any Department of Education school or in a charter school;

     (2)  Specifying that only retirants hired after June 30, 2026, shall be:

          (A)  Required to be paid the entry level salary for the teacher or administrator position as negotiated in the collective bargaining agreement; and

          (B)  Prohibited from receiving additional employment benefits;

     (3)  Inserting a savings clause; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Education and Labor and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2872, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2872, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Labor and Technology,