RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

SB731

THE SENATE

S.B. NO.

731

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to THE EMPLOYEES' RETIREMENT SYSTEM
.

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

����
SECTION
1
.
�
The legislature finds that Act 179, Session
Laws of Hawaii 2010, amended chapter 88, Hawaii Revised Statutes, to clarify
the circumstances under which a retirant of the State's employees' retirement
system may be reemployed without the suspension of the retirant's benefits and
to provide remedies if a retirant is reemployed in violation of that chapter or
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 departments of law enforcement
and the attorney general.

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Accordingly,
the purpose of this Act is to establish an additional category of retirants who
may be employed without reenrollment in the employees' retirement system and
without loss or interruption of benefits.

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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:

����
(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, 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;
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)
�
As an investigator identified by the
department of law enforcement or 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 six calendar months before the first day of
reemployment;

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

���������
(C)
�
The department of law enforcement or
department of the attorney general, as applicable, shall contribute the
required percentage of the rehired retirant's compensation to the pension
accumulation fund to amortize the system's unfunded actuarial accrued
liability.
"

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2.
�
By amending subsection (f) to read:

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"
(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 on July 1,
2025.

INTRODUCED BY:

_____________________________

Report Title:

DLE; AG;
ERS; DHRD; Counties; Retirees; Benefits; Investigators; Reports

Description:

Allows a
retirant employed as an investigator identified by the Department of Law
Enforcement or Department of the Attorney General as a labor shortage or
difficult-to-fill position to be rehired without reenrollment in the Employees'
Retirement System and without a loss or interruption of retirement benefits,
subject to certain conditions.
�
Requires annual
reports to the Legislature to include details on the employment of retirants as
investigators.

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