RELATING TO EMPLOYMENT OF RETIRANTS.

SB2836

THE SENATE

S.B. NO.

2836

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 the
department of education continues to face a critical shortage of qualified
teachers and educational officers, particularly in hard-to-staff geographic
regions and specialized subject areas.
�
The
legislature further finds that this chronic shortage denies students
consistent, high-quality instruction and places an immense burden on existing
school staff.

The legislature also finds that to address these vacancies, the
State has increasingly relied on emergency hires and the recruitment of
teachers from foreign countries through the J-1 visa program.
�
While these teachers provide a necessary
stopgap, the legislature notes that the J-1 visa program is inherently
temporary, creating a "revolving door" of turnover that disrupts
student learning and requires continuous recruitment resources.

The legislature recognizes that while retired teachers are
eligible to return as substitute teachers, the current compensation structure
for substitutes often fails to adequately recognize their professional
credentials.
�
Because substitute pay is
generally standardized, highly qualified retirees are disincentivized from
returning, as the compensation does not reflect their expert status compared to
non-credentialed substitutes.

The legislature believes that re-engaging these retirees is a
fiscal opportunity.
�
By creating a
structured pilot program, the State can fill critical vacancies with
experienced local talent while strengthening the employees' retirement system. Under
this system, the department of education will contribute the employer's share
of the unfunded actuarial accrued liability for each rehired retiree, paying
down state debt without incurring new pension obligations.
�
Furthermore, the State will realize cost savings
by statutorily excluding these positions from active recruitment into the
Hawaii employer-union health benefits trust fund.

Accordingly, the purpose of this Act is to establish a five-year
critical skills retention pilot program within the department of education to
authorize the rehiring of retired educators for hard-to-staff positions.

����
SECTION
2.
�
Chapter 302A, Hawaii Revised
Statutes, is amended by adding a new section to part III, subpart B, to be
appropriately designated and to read as follows:

����
"
�302A-
��

��
Critical
skills retention pilot program.
�
(a)
�
There
is established within the department the critical skills retention pilot
program.
�
The purpose of the pilot
program shall be to authorize the department to employ retirants under section
88-9(d)(6).

����
(b)
�

A retirant may be employed without reenrollment in the employees'
retirement system and suffer no loss or interruption of benefits provided under
chapters 87A and 88 if the retirant is employed under this section.

����
(c)
�

Before employing or reemploying a retirant under this section, the
superintendent of education shall certify in writing that:

����
(1)
�
Either:

���������
(A)
�
The department has conducted a good-faith
recruitment effort for the position; or

���������
(B)
�
The position falls within a
licensure area or geographic complex designated by the superintendent as having
a systemic shortage where continuous recruitment has failed to produce a sufficient
number of qualified non-retiree applicants; and

����
(2)
�
No qualified and available non-retirant
applicant could be identified to fill the vacancy.

The
superintendent shall establish internal procedures to verify the
certifications, ensuring that the program supplements, rather than supplants,
the permanent workforce.

����
(d)
�
Employment of any retirant by the department
shall be limited to employment in positions:

����
(1)
�
E
ligible for a hard-to-staff
location differential;

����
(2)
�
Eligible for a special education
differential;

����
(3)
�
Eligible for a Hawaiian language
immersion differential;

����
(4)
�
Eligible for another differential of
an annual amount of $3,000 or more as established by the department;

����
(5)
�
In an area where the percentage of
unlicensed individuals employed as emergency hires pursuant to sections
302A-801 to 302A-808 exceeds
����
per cent
of all public school teachers in that area; or

����
(6)
�
Identified by the superintendent as
a hard-to-staff position.

����
(e)
�
No retirant employed under this
section shall have:

����
(1)
�
B
een employed by the State or
a county during the six calendar months prior to the first day of reemployment,
except under subsection (i); or

����
(2)
�
E
ntered into an agreement
with the State or a county prior to retiring.

����
(f)
�
The department shall contribute the required
percentage of compensation to amortize the employees' retirement system's
unfunded actuarial accrued liability.

����
(g)
�
The retirant shall not earn additional
service credit or contribute to the pension accumulation fund established under
section 88-114.

����
(h)
�
The retirant shall be included in the
appropriate bargaining unit under section 89-6 for the payment of dues and
grievance protections,
but shall be
excluded from tenure and promotion provisions
.

����
(i)
�
The retirant's term of employment shall not
exceed one year; provided that the retirant may be reappointed to additional
one-year terms if, before each reappointment:

����
(1)
�
The requirements under subsection
(c) are satisfied again; and

����
(2)
�
The position continues to satisfy
the qualifications under subsection (d).

����
(j)
�
The superintendent may
establish a salary schedule for retirants employed by the department that
differs from the
applicable
c
ollective
bargaining agreement negotiated under chapter 89; provided that the salary of
the retirant shall not exceed the maximum salary step for the position's
classification in the
c
ollective
bargaining agreement.

����
(k)
�
For purposes
of this section, "retirant" has the same meaning as defined under section
88-21.
"

����
SECTION

3
.
�
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;

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

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

����
(6)
�
Positions filled by popular vote;

����
(7)
�
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;

����
(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;

����
(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;

���
(11)
�
(A)
�
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)
�
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;

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

���
(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;

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

���
(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;

���
(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;

���
(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;

���
(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;

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

���
(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;

���
(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;

���
(23)
�
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;

���
(24)
�
The sheriff;

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

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

���
(27)
�
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;

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

���
(29)
�
In the 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;

���
(30)
�
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;

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

���
(32)
�
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;

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

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

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

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

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

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

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

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

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

���
(42)
�
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

���
(44)
�
Retirants employed under section
302A-
����
.
"

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

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

����
SECTION
4.
�
Section 76-77, Hawaii Revised
Statutes, is amended to read as follows:

����
"
�76-77
�

Civil service and exemptions.
�

The civil service to which this part applies comprises all positions in
the public service of each county, now existing or hereafter established, and
embraces all personal services performed for each county, except the following:

����
(1)
�
Positions in the office of the mayor;
provided that the positions shall be included in the classification systems;

����
(2)
�
Positions of officers elected by public
vote, positions of heads of departments, and positions of one first deputy or
first assistant of heads of departments;

����
(3)
�
Positions of deputy county attorneys,
deputy corporation counsel, deputy prosecuting attorneys, and law clerks;

����
(4)
�
Positions of members of any board,
commission, or agency;

����
(5)
�
Positions filled by students; positions
filled through federally funded programs that provide temporary public service
employment such as the federal Comprehensive Employment and Training Act of
1973; and employees engaged in special research or demonstration projects
approved by the mayor, for which projects federal funds are available;

����
(6)
�
Positions of district judges, jurors,
and witnesses;

����
(7)
�
Positions filled by persons employed by
contract where the personnel director has certified that the service is special
or unique, is essential to the public interest, and that because of the
circumstances surrounding its fulfillment, personnel to perform the service
cannot be recruited through normal civil service procedures; provided that no
contract pursuant to this paragraph shall be for any period exceeding one year[
;
]
,
except for contracts authorized under section 302A-
���
;

����
(8)
�
Positions of a temporary nature needed
in the public interest where the need does not exceed ninety days; provided
that before any person may be employed to render temporary service pursuant to
this paragraph, the director shall certify that the service is of a temporary
nature and that recruitment through normal civil service recruitment procedures
is not practicable; and provided further that the employment of any person
pursuant to this paragraph may be extended for good cause for an additional
period not to exceed ninety days upon similar certification by the director;

����
(9)
�
Positions of temporary election clerks
in the office of the county clerk employed during election periods;

���
(10)
�
Positions specifically exempted from
this part by any other state statutes;

���
(11)
�
Positions of one private secretary for
each department head; provided that the positions shall be included in the
classification systems;

���
(12)
�
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, if any, and whose duties require only a portion of their time,
where it is impracticable to ascertain or anticipate the portion of time
devoted to the service of the county and that fact is certified by the
director;

���
(13)
�
Positions filled by persons with a
severe disability who are certified by the state vocational rehabilitation
office as able to safely perform the duties of the positions;

���
(14)
�
Positions of the housing and community
development office or department of each county; provided that this exemption
shall not preclude each county from establishing these positions as civil
service positions;

���
(15)
�
The following positions in the office
of the prosecuting attorney:
�
private
secretary to the prosecuting attorney, secretary to the first deputy
prosecuting attorney, and administrative or executive assistants to the
prosecuting attorney; provided that
�
the
positions shall be included in the classification systems; and

���
(16)
�
Positions or contracts for personal
services with private persons or entities for services lasting no longer than
one year and at a cost of no more than $750,000
; provided that the exemption under this
paragraph shall apply to contracts for building, custodial, and grounds
maintenance services with qualified community rehabilitation programs, as
defined in section 103D-1001, lasting for no
longer
than a year and at a cost
of no more than $3,000,000 in the aggregate per private person or entity,
regardless of the number of contracts or qualified community rehabilitation
programs utilized for the personal service.

����
The
director shall determine the applicability of this section to specific
positions and shall determine whether or not positions exempted by paragraphs
(7) and (8) shall be included in the classification systems.

����
Nothing
in this section shall be deemed to affect the civil service status of any
incumbent private secretary of a department head who held that position on May
7, 1977."

����
SECTION

5
.
�
Section 87A-1,
Hawaii Revised Statutes, is amended by amending the definition of
"employee-beneficiary" to read as follows:

����
""Employee-beneficiary"
means:

����
(1)
�
An
employee;

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

���������
(A)
�
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;

����
(3)
�
An employee who retired prior to 1961; and

����
(4)
�
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)
����
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"
shall not include any retirant employed under section 302A-
��
�
�
during the retirant's employment under that section.
"

����
SECTION

6
.
�
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 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[
.
]
; or

����
(6)
�
In a position under section
302A-
��
.
"

����
SECTION
7.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
8.
�
This Act shall take effect upon its
approval; provided that on June 30, 2031, this Act shall be repealed and
sections 76-16, 76-77, 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:

DOE;
Hard-to-Staff Positions; Pilot Program; Employment; Retirants

Description:

Establishes
a 5-year pilot program to authorize the Department of Education to rehire
retired teachers and educational officers for hard-to-staff positions.

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