SB2531

SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§87A- State and county contributions; employees hired after June 30, 2024, and retired. (a) This section shall apply to state and county contributions to the fund for employees hired after June 30, 2024, and who retired, except 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, 87A-35, or 87A-36, respectively:

(1) An employee hired after June 30, 2001, and before July 1, 2024, who transfers employment after June 30, 2024, and who cumulatively accrues at least ten years of credited service, for whom state and county contributions shall be made as provided by section 87A-36;

(2) An employee hired after June 30, 2001, and before July 1, 2024, who has at least ten years of credited service prior to a break in service, for whom state and county contributions shall be made as provided by section 87A-36;

(3) An employee hired after June 30, 1996, and before July 1, 2001, who transfers employment after June 30, 2001, and who cumulatively accrues at least ten years of credited service, for whom state and county contributions shall be made as provided by section 87A-35;

(4) An employee hired after June 30, 1996, and before July 1, 2001, who has at least ten years of credited service prior to a break in service, for whom state and county contributions shall be provided by section 87A-35; and

(5) An employee hired before July 1, 1996, who transfers employment after June 30, 1996, and who cumulatively accrues at least ten years of credited service, for whom state and county contributions shall be made as provided by section 87A-33.

(b) For purposes of this section, if an employee leaves state or county employment and returns to state or county employment after July 1, 2024, upon retirement, the employee's years of service shall be computed in the same manner as set forth in chapter 88.

(c) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund:

(1) For retired employees based on the self plan with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the monthly charge of the health benefits plan selected by the employee;

(2) For retired employees based on the self plan with at least fifteen but fewer than twenty-five years of service, a monthly contribution equal to seventy-five per cent of the monthly charge of the health benefits plan selected by the employee;

(3) For retired employees based on the self plan with at least twenty-five or more years of service, a monthly contribution equal to one hundred per cent of the monthly charge of the health benefits plan selected by the employee; and

(4) One-half of the monthly contributions for the employee-beneficiary or employee-beneficiary with dependent-beneficiaries upon the death of the employee, as defined in paragraph (1)(D) of the definition of "employee" in section 87A-1.

If two employee-beneficiaries are married or in a civil union, the total contribution by the State or county shall not exceed the monthly contribution for two supplemental medicare self or non-medicare self plans, as appropriate.

(d) For purposes of this section:

"Break in service" means to leave state or county employment in an eligible position or appointment for more than ninety calendar days before returning to state or county employment in an eligible position or appointment.

"Transfer" means to leave state or county employment and return to state or county employment within ninety calendar days."

SECTION 2. Section 87A-36, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

"§87A-36 State and county contributions; employees hired after June 30, 2001, but before July 1, 2024, and retired. (a) This section shall apply to state and county contributions to the fund for employees hired after June 30, 2001, but before July 1, 2024, and who retired, except that this section shall not apply to the following employees, for whom state and county contributions shall be made as provided by section 87A-35:

(1) An employee hired after June 30, 1996, and prior to July 1, 2001, who transfers employment after June 30, 2001, and who cumulatively accrues at least ten years of credited service; and

(2) An employee hired after June 30, 1996, and prior to July 1, 2001, who has at least ten years of credited service prior to a break in service.

For 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. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2531
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII