RELATING TO EMPLOYMENT OF RETIRANTS.

SB2526

THE SENATE

S.B. NO.

2526

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to employment of retirants
.

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

����
SECTION 1.
�
The legislature finds that reemployment of
retirees for unique and crucial positions will help stabilize county
operations, provide expertise and institutional knowledge, and support
workforce training and succession planning.

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Accordingly,
the purpose of this Act is to enable the State and counties to temporarily rehire
retired public employees in positions identified as unique and critical to
government operations.

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

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1.
�

By amending subsection (d) to read:

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"(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:

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(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);

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(2)
�
As a juror or
precinct official;

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(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
the first day of reemployment; and

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(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
]

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(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)
�
In a position
identified by the appropriate jurisdiction as unique and critical to
operations; 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;

���������
(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; and

���������
(D)
�
The
retirant shall not be reemployed in a position identified as unique and
critical to operations for a period exceeding four years in total.
�
Upon reaching the four-year limit, the retirant
shall separate from the state and county employment.
"

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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."

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Statutory material to be repealed is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

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

INTRODUCED
BY:

_____________________________

By
Request

Report Title:

Hawaii
Council of Mayors Package; Retirants; Employment

Description:

Authorizes
the rehiring of retirants for positions that are unique and critical to
operations.
�
Limits the duration of each
retirant's reemployment to 4 years.

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