RELATING TO RETIRANTS.

SB2672

THE SENATE

S.B. NO.

2672

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Retirants
.

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

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SECTION 1.
�
The legislature finds that the State faces
persistent workforce shortages in key technical and specialized positions.
�
Retired state employees who possess
institutional knowledge are often best suited to quickly fill these gaps.
�
However, retirants are currently limited to
short-term, eighty‑nine-day contracts when returning to public employment.

�
This creates constant administrative
turnover, prevents long‑term project management, and discourages retirees
from returning to work for the State.

����
Accordingly,
the purpose of this Act is to establish a cost-neutral or cost-saving five-year
pilot program to allow the State to rehire retirants into hard-to-staff
positions for terms longer than eighty-nine days.

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SECTION

2
.
�
Section 76-16,
Hawaii Revised Statutes, is amended by amending subsection (b) to read as
follows:

����
"(b)
�
The civil service to which this chapter
applies shall comprise all positions in the State now existing or hereafter
established and embrace all personal services performed for the State, except
the following:

����
(1)
�
Commissioned and enlisted personnel of
the Hawaii National Guard and positions in the Hawaii National Guard that are
required by state or federal laws or regulations or orders of the National
Guard to be filled from those commissioned or enlisted personnel;

����
(2)
�
Positions filled by persons employed by
contract where the director of human resources development has certified that
the service is special or unique or is essential to the public interest and
that, because of circumstances surrounding its fulfillment, personnel to
perform the service cannot be obtained through normal civil service recruitment
procedures.
�
Any contract may be for any
period not exceeding one year;

����
(3)
�
Positions that must be filled without
delay to comply with a court order or decree if the director determines that recruitment
through normal recruitment civil service procedures would result in delay or
noncompliance, such as the Felix-Cayetano consent decree;

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(4)
�
Positions filled by the legislature or
by either house or any committee thereof;

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(5)
�
Employees in the office of the governor
and office of the lieutenant governor, and household employees at Washington
Place;

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(6)
�
Positions filled by popular vote;

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(7)
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Department heads, officers, and members
of any board, commission, or other state agency whose appointments are made by
the governor or are required by law to be confirmed by the senate;

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(8)
�
Judges, referees, receivers, masters,
jurors, notaries public, land court examiners, court commissioners, and
attorneys appointed by a state court for a special temporary service;

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(9)
�
One bailiff for the chief justice of
the supreme court who shall have the powers and duties of a court officer and
bailiff under section 606-14; one secretary or clerk for each justice of the
supreme court, each judge of the intermediate appellate court, and each judge
of the circuit court; one secretary for the judicial council; one deputy
administrative director of the courts; three law clerks for the chief justice
of the supreme court, two law clerks for each associate justice of the supreme
court and each judge of the intermediate appellate court, one law clerk for
each judge of the circuit court, two additional law clerks for the civil
administrative judge of the circuit court of the first circuit, two additional
law clerks for the criminal administrative judge of the circuit court of the
first circuit, one additional law clerk for the senior judge of the family
court of the first circuit, two additional law clerks for the civil motions
judge of the circuit court of the first circuit, two additional law clerks for
the criminal motions judge of the circuit court of the first circuit, and two
law clerks for the administrative judge of the district court of the first
circuit; and one private secretary for the administrative director of the
courts, the deputy administrative director of the courts, each department head,
each deputy or first assistant, and each additional deputy, or assistant
deputy, or assistant defined in paragraph (16);

���
(10)
�
First deputy and deputy attorneys
general, the administrative services manager of the department of the attorney
general, one secretary for the administrative services manager, an
administrator and any support staff for the criminal and juvenile justice resources
coordination functions, and law clerks;

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(11)
�
(A)
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Teachers, principals, vice-principals,
complex area superintendents, deputy and assistant superintendents, other
certificated personnel, and no more than twenty noncertificated administrative,
professional, and technical personnel not engaged in instructional work;

���������
(B)
�
Effective July 1, 2003, teaching
assistants, educational assistants, bilingual or bicultural school-home
assistants, school psychologists, psychological examiners, speech pathologists,
athletic health care trainers, alternative school work study assistants,
alternative school educational or supportive services specialists, alternative
school project coordinators, and communications aides in the department of
education;

���������
(C)
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The special assistant to the state
librarian and one secretary for the special assistant to the state librarian;
and

���������
(D)
�
Members of the faculty of the
university of Hawaii, including research workers, extension agents, personnel
engaged in instructional work, and administrative, professional, and technical
personnel of the university;

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(12)
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Employees engaged in special, research,
or demonstration projects approved by the governor;

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(13)
�
(A)
�
Positions filled by inmates, patients
of state institutions, and persons with severe physical or mental disabilities
participating in the work experience training programs;

���������
(B)
�
Positions filled with students in
accordance with guidelines for established state employment programs; and

���������
(C)
�
Positions that provide work experience
training or temporary public service employment that are filled by persons
entering the workforce or persons transitioning into other careers under
programs such as the federal Workforce Investment Act of 1998, as amended, or
the Senior Community Service Employment Program of the Employment and Training
Administration of the United States Department of Labor, or under other similar
state programs;

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(14)
�
A custodian or guide at Iolani Palace,
the Royal Mausoleum, and Hulihee Palace;

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(15)
�
Positions filled by persons employed on
a fee, contract, or piecework basis, who may lawfully perform their duties
concurrently with their private business or profession or other private
employment and whose duties require only a portion of their time, if it is
impracticable to ascertain or anticipate the portion of time to be devoted to
the service of the State;

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(16)
�
Positions of first deputies or first
assistants of each department head appointed under or in the manner provided in
section 6, article V, of the Hawaii State Constitution; three additional
deputies or assistants either in charge of the highways, harbors, and airports
divisions or other functions within the department of transportation as may be
assigned by the director of transportation, with the approval of the governor;
one additional deputy in the department of human services either in charge of
welfare or other functions within the department as may be assigned by the
director of human services; four additional deputies in the department of
health, each in charge of one of the following:
�

behavioral health, environmental health, hospitals, and health resources
administration, including other functions within the department as may be
assigned by the director of health, with the approval of the governor; two
additional deputies in charge of the law enforcement programs, administration,
or other functions within the department of law enforcement as may be assigned
by the director of law enforcement, with the approval of the governor; three
additional deputies each in charge of the correctional institutions,
rehabilitation services and programs, and administration or other functions
within the department of corrections and rehabilitation as may be assigned by
the director of corrections and rehabilitation, with the approval of the
governor; two administrative assistants to the state librarian; and an administrative
assistant to the superintendent of education;

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(17)
�
Positions specifically exempted from
this part by any other law; provided that:

���������
(A)
�
Any exemption created after July 1,
2014, shall expire three years after its enactment unless affirmatively
extended by an act of the legislature; and

���������
(B)
�
All of the positions defined by
paragraph (9) shall be included in the position classification plan;

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(18)
�
Positions in the state foster
grandparent program and positions for temporary employment of senior citizens
in occupations in which there is a severe personnel shortage or in special
projects;

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(19)
�
Household employees at the official
residence of the president of the university of Hawaii;

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(20)
�
Employees in the department of
education engaged in the supervision of students during meal periods in the
distribution, collection, and counting of meal tickets, and in the cleaning of
classrooms after school hours on a less than half-time basis;

���
(21)
�
Employees hired under the tenant hire
program of the Hawaii public housing authority; provided that no more than
twenty-six per cent of the authority's workforce in any housing project
maintained or operated by the authority shall be hired under the tenant hire
program;

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(22)
�
Positions of the federally funded
expanded food and nutrition program of the university of Hawaii that require
the hiring of nutrition program assistants who live in the areas they serve;

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(23)
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Positions filled by persons with severe
disabilities who are certified by the state vocational rehabilitation office
that they are able to perform safely the duties of the positions;

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(24)
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The sheriff;

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(25)
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A gender and other fairness coordinator
hired by the judiciary;

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(26)
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Positions in the Hawaii National Guard
youth and adult education programs;

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(27)
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In the Hawaii state energy office in
the department of business, economic development, and tourism, all energy
program managers, energy program specialists, energy program assistants, and
energy analysts;

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(28)
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Administrative appeals hearing officers
in the department of human services;

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(29)
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In the [
Med-QUEST
]
med-QUEST

division of the department of human services, the division administrator,
finance officer, health care services branch administrator, medical director,
and clinical standards administrator;

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(30)
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In the director's office of the
department of human services, the enterprise officer, information security and
privacy compliance officer, security and privacy compliance engineer, security
and privacy compliance analyst, information technology implementation manager,
assistant information technology implementation manager, resource manager,
community or project development director, policy director, special assistant
to the director, and limited English proficiency project manager or
coordinator;

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(31)
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The Alzheimer's disease and related
dementia services coordinator in the executive office on aging;

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(32)
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In the Hawaii emergency management
agency, the executive officer, public information officer, civil defense
administrative officer, branch chiefs, and emergency operations center state
warning point personnel; provided that for state warning point personnel, the
director shall determine that recruitment through normal civil service
recruitment procedures would result in delay or noncompliance;

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(33)
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The executive director and seven
full-time administrative positions of the school facilities authority;

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(34)
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Positions in the Mauna Kea stewardship
and oversight authority;

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(35)
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In the office of homeland security of
the department of law enforcement, the statewide interoperable communications
coordinator;

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(36)
�
In the social services division of the
department of human services, the business technology analyst;

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(37)
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The executive director and staff of the
911 board;

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(38)
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The software developer supervisor and
senior software developers in the department of taxation;

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(39)
�
In the department of law enforcement,
five Commission on Accreditation for Law Enforcement Agencies, Inc.,
coordinator positions;

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(40)
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The state fire marshal and deputy state fire marshal
in the office of the state fire marshal;

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(41)
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The administrator for the law
enforcement standards board;

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(42)
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In the office of the
director of taxation, the data privacy officer and tax business analysts
; [
and

[
]
(43)[
]
]

All positions filled by the Hawaii
tourism authority within the department of business, economic development, and
tourism[
.
]
; and

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(44)
�
Retirants employed under section
88-9(d)(6).

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The
director shall determine the applicability of this section to specific
positions.

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Nothing
in this section shall be deemed to affect the civil service status of any
incumbent as it existed on July 1, 1955."

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SECTION
3.
�
Section 87A-1, Hawaii Revised
Statutes, is amended by amending the definition of
"employee-beneficiary" to read as follows:

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""Employee-beneficiary"
means:

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(1)
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An
employee;

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(2)
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The beneficiary of an employee who is killed
in the performance of the employee's duty, including:

���������
(A)
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The
surviving child, if there is no surviving parent who is eligible to be an
employee‑beneficiary and the child is unmarried and under the limiting
age as defined by the board; and

���������
(B)
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The
surviving spouse, if the surviving spouse does not subsequently remarry;

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(3)
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An employee who retired [
prior to
]
before

1961; and

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(4)
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The beneficiary of a retired member of the
employees' retirement system; a county pension system; or a police,
firefighters, or bandsmen pension system of the State or a county, upon the death
of the retired member, including:

������
(A)
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The
surviving child, if there is no surviving parent who is eligible to be an
employee‑beneficiary and the child is unmarried and under the limiting
age as defined by the board; and

������
(B)
����
The
surviving spouse, if the surviving spouse does not subsequently remarry;

provided that the employee, the employee's beneficiary, or the
beneficiary of the deceased retired employee is deemed eligible by the board to
participate in a health benefits plan or long‑term care benefits plan
under this chapter.
�
"Employee‑beneficiary"
does not include any retirant employed under section 88-9(d)(6) for the
duration of the retirant's employment under that section.
"

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SECTION
4.
�
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);

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(2)
�
As a juror or precinct official;

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(3)
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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;

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(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 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[
.
]
; or

����
(6)
�
In a position verified by the
governor or any county mayor as an identified labor shortage or certified hard-to-staff
position and for which employment for a period exceeding eighty-nine days would
be beneficial; provided that:

���������
(A)
�
The position
was publicly
recruited for a minimum of fourteen days, in accordance with the requirements
of chapter 76;

���������
(B)
�
No list of certified eligibles could
be established for the position, or the list of certified eligibles was
exhausted without a successful hire;

���������
(C)
�
The term of employment shall not
exceed one year; provided that employment may be renewed for additional terms
of one year; provided further that before each renewal the governor or any
mayor shall verify that:

��������������
(i)
�
The position remains identified as a
labor shortage position or certified as a hard‑to‑staff position;
and

�������������
(ii)
�
A new recruitment effort pursuant to
subparagraphs (A) and (B) was conducted but failed to identify a qualified
non-retirant candidate;

���������
(D)
�
The retirant shall not:

��������������
(i)
�
Have been employed by the State or a
county during the six calendar months before the first day of the initial
reemployment; or

�������������
(ii)
�
Have entered into an agreement for
employment with the State or a county before retiring;

���������
(E)
�
The employer shall contribute the
required percentage of compensation to amortize the system's unfunded actuarial
accrued liability;

���������
(F)
�
The retirant shall be included in
the appropriate bargaining unit under section 89-6 for the payment of dues and
grievance protections;

���������
(G)
�
If the position is a state position,
the appointing authority shall notify the department of human resources
development of the retirant's employment and provide other information as
required by the department of human resources development; and

���������
(H)
�
If the position is in the department
of education, the superintendent may set a salary schedule for the position
without regard to the standard collective bargaining agreement salary step
placement; provided further that the salary shall not exceed the maximum step
of the position's classification.

���������
F
or
the purposes of this paragraph, "hard-to-staff" means a position for
which the director of human resources development or respective appointing
authority has certified that the service is special or unique or is essential
to the public interest and that, because of circumstances surrounding its
fulfillment, personnel to perform the service cannot be obtained through normal
civil service recruitment procedures; provided further that for the purposes of
positions in the department of education, "hard‑to‑staff"
includes positions eligible for shortage differential pay and in subject areas
in which the number of unlicensed teachers exceeds a critical threshold, as
determined by the department of education by rule.
"

����
SECTION
5.
�
The department of human resources
development shall submit a report on the implementation of this Act to the
legislature no later than twenty days prior to the convening of the regular
session of
2031.
�
The report shall include:

����
(1)
�
For the period beginning on the
effective date of this Act and ending on June 30, 2030:

���������
(A)
�
The number of reported retirants
rehired by the State under section 88-9(d)(6), Hawaii Revised Statutes;

���������
(B)
�
A representative summary of the
duration of the retirants' employment in a manner that protects personally
identifiable information;

���������
(C)
�
The savings or estimated savings to the
State; and

���������
(D)
�
Other information deemed relevant by
the department of human resources development;

����
(2)
�
A recommendation as to whether the
program should be made permanent, modified, or terminated; and

����
(3)
�
Any proposed legislation.

����
SECTION
6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 7.
�
This Act shall take effect upon its approval;
provided that on June 30, 2031, this Act shall be repealed and sections 76-16,
87A-1, and 88-9, Hawaii Revised Statutes, shall be reenacted in the form in
which they read on the day prior to the effective date of this Act.

INTRODUCED BY:

_____________________________

Report Title:

DHRD;
ERS; EUTF; Public Employment; Retirants; State and County Positions; 89-Day
Contracts; Report

Description:

Establishes
a five-year pilot program allowing retirants to be rehired for exempt service
for one-year terms under certain circumstances.
�

Provides that retirants employed under the program are excluded from the
Hawaii Employer-Union Health Benefits Trust Fund and will not experience an
interruption of pension benefits.
�

Requires an employer of a retirant under the program to contribute to
the Employees' Retirement System.
�
Requires
the Department of Human Resources Development to submit a report to the
Legislature.
�
Sunsets 6/30/2031.

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