Allows appointing authorities to rehire retired state and county government employees in labor shortage and difficult to fill occupational areas for loner than 89 days or up to 100% F/T equivalents, without the retirees incurring any negative impact on their normal retirement benefits.

A BILL FOR AN ACT

SECTION 1. The legislature recognizes that when state government is faced with a labor shortage or with occupational areas that are difficult to fill, the State needs to be creative and flexible in finding ways to attract and retain skilled employees. There is no question that retired state and county government employees can be one source that the state government can look at, to find such skilled employees.

The legislature further acknowledges that the state executive branch will be facing an unprecedented number of vacancies within the next three to five years, as a significant percentage of its employees become eligible for retirement.

The legislature has found that oftentimes, retired state employees are asked to come back to work and are willing to come back to work for temporary periods of eighty-nine consecutive days or for less than twenty hours per week. These situations are currently permitted under the employees' retirement system, without jeopardizing the employees' retirement benefits. However, the legislature finds that additional flexibility may soon be required in the future.

It is the legislature's intent that this Act will strike a balance between the state government's need to have skilled employees in labor shortage or difficult to fill occupational areas and the retired state and county government employees' desire to work for the state government. This Act will allow retired state and county government employees to work for the state government in labor shortage and difficult to fill occupational areas up to one hundred per cent full-time equivalents or for more than eighty-nine consecutive days, without incurring any negative retirement consequences, such as the forfeiture of retirement benefits.

SECTION 2. Beginning July 1, 2005, appointing authorities in the state executive branch may employ retired state and county government employees at up to one hundred per cent full-time equivalents or for more than eighty-nine consecutive days, subject to the prior approval of the director of human resources development. The positions filled by retired state and county government employees under this Act shall be limited to labor shortage and difficult-to-fill occupational areas, as determined by the director of human resources development.

The provisions of sections 88-21, 88-42.5, 88-43, 88-45, and 88-46, Hawaii Revised Statutes, and any other statute to the contrary notwithstanding, retired state and county government employees who are hired under this Act shall not earn retirement service credit, contribute to the retirement system, or gain additional retirement system benefits as a result of their employment; provided that the retiree shall continue to receive the entitled normal retirement benefits without penalty.

SECTION 3. This Act shall take effect on July 1, 2005, and shall be repealed on July 1, 2010.