HB2710

SECTION 1. The legislature recognizes the changing demographics of the workforce -- the workforce is aging with an increasing number of state and county employees becoming eligible to retire with full retirement benefits. The legislature also recognizes that life spans have increased, not only because of advances in medicine and technology, but because people are choosing to live healthier lifestyles.

The legislature understands that with the low unemployment rate the State is now experiencing, county governments have more vacancies occurring with a dwindling number of qualified applicants. The counties have many jobs categorized as hard-to-fill, or as being in a labor-shortage category.

In 2008, an estimated 12.84 per cent of county public employees are eligible to retire and by 2012, the figure is anticipated to rise to 25.12 per cent. As the baby boomers begin to retire, vacancies in government employment will continue to increase.

While retired state and county employees are now permitted to work for temporary periods of eighty-nine consecutive days or for less than twenty hours per week without jeopardizing their retirement benefits, there is no reason not to afford the county governments the ability to hire state and county government retirees regardless of the length of time or number of hours employed, especially since they will otherwise work for the private sector.

This Act will address the employment vacancy issue by allowing county employers to recruit from the same group of qualified applicants as private employers and put government employers on an equal footing with private sector employers in hiring state and county retirees.

The legislature intends that the manner in which civil service and exempt positions are filled by retired state or county employees and the manner in which the employed-retiree's status is determined, shall be in accordance with normal processes for recruiting and selecting applicants for these positions. The legislature understands that for civil service positions, this process will provide due consideration to promotional opportunities for existing employees. To ensure the continued provision of public services, the legislature supports the immediate rehiring of government retirees. Further, the legislature intends that the collective bargaining status of these employed-retirees will be determined in accordance with existing laws governing assignment to, and inclusion or non-inclusion in, a bargaining unit.

The legislature believes this Act will strike a balance between the county government's need to hire skilled and qualified employees and retired state and county government employees' desire to work for county governments. This Act will allow retired state and county government employees to work for county governments without incurring any negative retirement consequences, such as the forfeiture of retirement benefits already earned and being collected by employees.

SECTION 2. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§88- Re-employment of retirees. (a) Appointing authorities in a county may employ retired state or county government employees who are receiving retirement benefits under this chapter.

(b) Retired state or county government employees rehired for civil service positions shall be recruited, selected, and employed pursuant to applicable civil service and employment laws.

(c) The human resources management chief executive of the respective county in which a retired state or county government employee is hired by that county shall certify the hiring of the retiree as having been done pursuant to applicable civil service and employment laws.

(d) Sections 88-21, 88-42.5, 88-43, 88-45, 88-46, 88-98, 88-273, 88-326, and 88-344, and any other law to the contrary notwithstanding, retired state or county government employees who are hired by any of the counties shall not earn retirement service credit, contribute to the retirement system, or gain additional retirement system benefits as a result of their subsequent employment with a county and the retired state or county government employee shall continue to receive the retiree's retirement benefits and medical benefits without penalty. Notwithstanding any law to the contrary, there shall be no county employer contributions or payments to the system for the retiree as that person does not earn additional service credits while employed in accordance with this section.

(e) This section shall not preclude a retired state or county government employee from returning to work and relinquishing the person's retirement benefits to earn additional service credits and gain additional retirement benefits for a future retirement date as may be allowed by this chapter."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2710
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII