SB1950 HD1

THE SENATE	S.B. NO.	1950
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

relating to the re-employment of retirees.

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

SECTION 1. The purpose of this Act is to allow the state and county governments to rehire retired employees as permanent workers while shielding these retirees from any negative impact on their normal retirement benefits.

As of September 30, 2006, an estimated ten per cent of state public employees are eligible to retire and by fiscal year 2011 the figure is anticipated to rise to twenty-six per cent. As the baby boomers begin to retire, vacancies in government employment will continue to increase. It is estimated that by the year 2011, one out of every four residents in our state will be over sixty-five years old.

Based on these statistics, it is imperative that state and county governments address this employment vacancy issue. It is the intent of the legislature that this temporary measure be enacted to allow the state and county governments to develop plans to fill these employment vacancies.

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 state and county retirants. (a) Appointing authorities in state and county governments may employ a retired state or county public employee who is receiving retirement benefits under this chapter, in a critical-to-fill or labor shortage position, as designated by the human resources director of the appropriate jurisdiction. Each jurisdiction shall make employer contributions for the rehired employee to the pension accumulation fund in accordance with section 88-122(e). If the position is a civil service position, then civil service procedures shall be followed in recruiting and selecting any retirant for the position. To qualify for full-time employment, the retirant shall have been retired from a state or county public employee position for at least one calendar year from the employee's date of retirement. The human resources director of the appropriate jurisdiction shall certify that the retiree was hired in accordance with applicable civil service laws and this section.

(b) 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, a retired state or county public employee who is hired by the State or a county under this section:

(1) Shall not earn retirement service credit, contribute to the system, or gain additional system benefits as a result of the retirant's subsequent employment with the State or a county;

(2) Shall continue to receive the employee's normal retirement benefits and medical retirement benefits without penalty; and

(3) Shall join the collective bargaining unit of any included position.

(c) This section shall not preclude a retirant from returning to work and relinquishing the employee's retirement benefits to earn additional service credit and gain additional retirement benefits for a future retirement date as may be allowed by this chapter.

(d) For the purposes of this section:

"Jurisdiction" means the city and county of Honolulu, the counties of Hawaii, Maui, and Kauai, the department of education, the judiciary, the Hawaii health systems corporation, the office of Hawaiian affairs, the state executive branch, and the legislative branches of the state and county governments.

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

SECTION 3. Each jurisdiction using the provisions of section 2 of this Act shall report annually to the legislature no later than twenty days prior to the convening of the legislature on the number of positions filled pursuant to this Act, which report shall include but not be limited to job title, salary, and the length of time each retirant was hired and other pertinent information.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2040, and shall be repealed on June 30, 2012.