HB2710 HD1

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, state and county governments have more vacancies occurring with a dwindling number of qualified applicants. The state and 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 state and 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 state and 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. 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 state and county government's need to hire skilled and qualified employees and retired state and county government employees' desire to work for state and county governments. This Act will allow retired state and county government employees to work for state and 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 retirants. (a) Appointing authorities in a county may employ retired state or county government employees who are receiving retirement benefits under this chapter.

(b) The director of human resources of the appropriate state jurisdiction may employ retired state or county government employees who are receiving retirement benefits under this chapter to fill labor shortage and difficult-to-fill exempt or civil service positions.

(c) Retired state or county government employees shall only be eligible for full-time employment with a state or county government after one calendar year of retirement.

(d) Re-employment agreements shall not be entered into between the state or county and an employee prior to the retirement of the employee.

(e) 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.

(f) The director of human resources of the appropriate state jurisdiction in which a retired state or county government employee is hired or 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 retirant as having been done pursuant to applicable civil service and employment laws.

(g) 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 the state or 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 the state or a county and the retired state or county government employee shall continue to receive the retirant's retirement benefits and health benefits without penalty. Each employer shall make employer contributions to the pension accumulation fund in accordance with section 88-122(e).

(h) A retired state or county government employee, who is hired by the state or county under this section shall join the appropriate bargaining unit if hired in a position covered by collective bargaining.

(i) 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.

(j) The director of human resources of the appropriate state jurisdiction shall submit an annual report detailing the employment of retirants, including the number and positions of retired employees hired under this section prior to each legislative session

(k) For purposes of this section:

"One calendar year" means twelve consecutive months from the date of the employee's retirement to the date of the employee's re-employment under this Act.

"State jurisdiction" means the department of education, the judiciary, the Hawaii health systems corporation, the office of Hawaiian affairs, the state executive branch, and the legislative branch of state government.

"State executive branch" means all the departments of the executive branch of state government, except the University of Hawaii, the Hawaii health systems corporation, and the department of education."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2008 and shall be repealed on June 30, 2013.

HOUSE OF REPRESENTATIVES	H.B. NO.	2710
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII