SB 442: 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 and 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 identified by the appropriate jurisdiction 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, 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] 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 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.  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:

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.  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 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 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 the attorney general and the department of law enforcement.

     The legislature further finds that there is a labor shortage that makes it difficult to fill excluded management positions in the department of agriculture and other state departments.

     Accordingly, the purpose of this Act is to expand the categories 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 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, 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[.];

     (6)  As an investigator identified by the department of the attorney general or the department of law enforcement 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 retirant and the State or a county, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of the attorney general or the department of law enforcement, as the case may be, 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

     (7)  In a management position excluded from collective bargaining under chapter 89 and identified by the applicable department as a labor shortage, a difficult‑to‑fill position, or 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 the first day of reemployment;

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

          (C)  The applicable department 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)  The reemployment term of the retirant shall not exceed       years, unless an extension is approved by the director of human resources development."

     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), (6), and (7) 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, 2050.

Report Title:

ATG; DLE; ERS; Retirees; Hawaii Employer-Union Health Benefits Trust Fund; Benefits; Investigators; Counties; Report

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System (ERS) and without loss or interruption of benefits provided by the ERS or under Chapter 88, HRS, if the retirant is employed as an investigator in a position identified by the Department of the Attorney General or Department of Law Enforcement or an excluded management position of any department as a labor shortage, a difficult‑to‑fill position, or needed for succession planning, subject to certain conditions.  Requires the Director of Human Resources of the appropriate state jurisdiction or the human resources management chief executive of each county to include in their annual reports to the Legislature, details on the employment of retirants as investigators pursuant to this measure.  Effective 7/1/2050.  (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 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 the attorney general.

     The legislature further finds that there is a labor shortage that makes it difficult to fill excluded management positions in the department of agriculture.

     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 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, 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[.];

     (6)  As an investigator identified by the 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 twelve calendar months prior to the first day of reemployment;

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

          (C)  The department of the attorney general 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

     (7)  As a management position excluded from collective bargaining under chapter 89 and identified by the department of agriculture 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 retirant and the State or a county, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of agriculture 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), (6), and (7) 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:

ATG; ERS; HDOA; Retirees; Hawaii Employer-Union Health Benefits Trust Fund; Benefits; Investigators; Counties; Report

Description:

Allows a retirant to be employed without reenrollment in the Employees' Retirement System (ERS) and without loss or interruption of benefits provided by the ERS or under chapter 88, HRS, if the retirant is employed as an investigator in a position identified by the Department of the Attorney General or an excluded management position identified by the Department of Agriculture as a labor shortage or difficult‑to‑fill position, subject to certain conditions.  Requires the Director of Human Resources of the appropriate state jurisdiction or the human resources management chief executive of each county to include in their annual reports to the Legislature, details on the employment of retirants as investigators pursuant to this measure.

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.  1390

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 442

      S.D. 1

      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 S.B. No. 442, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish two additional categories of retirants who may be employed without re-enrollment in the Employees' Retirement System and without loss or interruption of retirement benefits and are identified as a labor shortage or difficult-to-fill positions by the appropriate department including:

          (A)  Investigator positions in the Department of the Attorney General or Department of Law Enforcement; and

          (B)  Management positions excluded from collective bargaining in any department; and

     (2)  Require the Director of Human Resources of the appropriate state jurisdiction to include details on the employment of retirants in certain management positions  or as investigators in their 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 testimony in opposition to this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.  Your Committee received comments on this measure from the Employees' Retirement System Board of Trustees.

     Your Committee finds that allowing valuable and experienced retirants to be rehired is a sound method to address the high vacancy rate in the public sector, especially within the Department of Law Enforcement and Department of the Attorney General.  However, your Committee notes the concerns raised by the Employees' Retirement System Board of Trustees, in that no clear and uniform criteria are established for the determination of "labor shortage" or "difficult-to-fill" positions, possibly resulting in inconsistent determinations and administration of employees under the same employer.

     Accordingly, your Committee has amended this measure by:

     (1)  Removing investigator positions in the Department of the Attorney General or Department of Law Enforcement and management positions excluded from collective bargaining in any department as additional categories of retirants who may be employed without re-enrollment in the Employees' Retirement System established under this measure;

     (2)  Adding positions needed for succession planning as a type of position that can be identified by the appropriate jurisdiction to be filled by retirants without reenrollment into the Employees' Retirement System;

     (3)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     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 S.B. No. 442, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 442, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

STAND. COM. REP. NO. 821

Honolulu, Hawaii

RE:    S.B. No. 442

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 442 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to address certain staffing shortages in state government by allowing for the limited reemployment of retirants.

     Specifically, this measure:

     (1)  Allows a retirant to be employed without reenrollment in the Employees' Retirement System if the retirant is employed as an investigator of the Department of the Attorney General or in an excluded management position identified by the Department of Agriculture as a labor shortage or difficult-to-fill position; and

     (2)  Requires reports to the Legislature detailing the reemployment of retirants.

     Your Committees received testimony in support of this measure from the Department of Law Enforcement, Department of Agriculture, and Department of the Attorney General.

     Your Committees received testimony in opposition to this measure from eight individuals.

     Your Committees received comments on this measure from one individual.

     Your Committees find that the Department of Law Enforcement experiences similar staffing shortages for investigators as the Department of the Attorney General and that providing a similar authorization in the measure for reemployment of retirants will assist in filling those positions.  Your Committees further find that expanding to all departments the authorization to reemploy retirants for excluded management positions will also help to fill positions, including positions needed for succession planning.

     Your Committees have amended this measure by:

     (1)  Including language to also make investigators of the Department of Law Enforcement eligible for reemployment as a retirant without reenrollment in the Employees' Retirement System;

     (2)  Expanding to all departments the provision authorizing reemployment for excluded management positions, and including the need for succession planning as a justification for the reemployment, subject to an unspecified term limit; and

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 442, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 442, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,