Report Title:
EUTF; Teachers; Retirement Health Benefits
Description:
Allows teachers hired prior to July 1, 1996 with up to a two year break in service and still retain full retirement health benefits upon accruing ten years of credited service.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1671 |
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TWENTY-THIRD LEGISLATURE, 2005 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to retirement benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a teacher shortage currently exists in the State of Hawaii. In 2004, Hawaii's public education system began the school year with a shortage of three hundred fify-seven teachers, continuing a trend that has left the state with a constant pool of vacancies. This has only resulted in decreased levels of education for our children and increased hardships for those teachers currently in the system.
One of the factors contributing to the teacher shortage is the fact that many teachers who have left the public education system face a disincentive when they consider returning to teaching. Those who were hired prior to July 1, 1996, are entitled to health coverage upon retirement after ten years of service. However, if they leave the state system and later return, they must then work for twenty-five years before earning the same benefits. This means that those teachers who were forced to temporarily leave state employment due to personal or family reasons are unduly penalized. Additionally, those considering a return to teaching face spending many more years to earn the same benefits that they could have previously earned in only ten. For many, the prospect of retiring without full health coverage is just not an option, making it difficult for these teachers to return to a job where they can help educate Hawaii's youth. Since the legislature has indicated that education is a top priority, this situation must be addressed.
The purpose of this Act is to allow teachers who leave the state system to return to employment without loss of their earned health benefits.
SECTION 2. Section 87A-35, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This section shall apply to state and county contributions to the fund for employees who were hired after June 30, 1996, but before July 1, 2001, and who retire with fewer than twenty-five years of credited service, excluding sick leave; provided that this section shall not apply to the following employees, for whom state and county contributions shall be made as provided by section 87A-33:
(1) An employee hired prior to July 1, 1996, who transfers employment after June 30, 1996, and who cumulatively accrues at least ten years of credited service; [and]
(2) An employee hired prior to July 1, 1996, who has at least ten years of credited service prior to a break in service[.]; and
(3) An employee belonging to bargaining unit (5) hired prior to July 1, 1996, in a position within bargaining unit (5) who accrues at least ten years of credited service, regardless of a break in service; provided that the break in service shall not exceed two years.
For the purposes of this section:
"Break in service" means to leave state or county employment for more than ninety calendar days before returning to state or county employment.
"Transfer" means to leave state or county employment and return to state or county employment within ninety calendar days."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval and shall apply retroactively to July 1, 2002.
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INTRODUCED BY: |
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