THE SENATE
S.B. NO.
2526
THIRTY-THIRD LEGISLATURE, 2026
S.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO EMPLOYMENT OF RETIRANTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that reemployment of retirees for unique and crucial positions will help stabilize county operations, provide expertise and institutional knowledge, and support workforce training and succession planning.
Accordingly, the purpose of this Act is to enable the State and counties to temporarily rehire retired public employees in positions identified as unique and critical to government operations.
SECTION 2. Section 88-9, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (d) to read:
"(d) A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:
(1) As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);
(2) As a juror or precinct official;
(3) As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2[[Struck through: []],[[Struck through: ]]] or as any other employee expressly excluded by law from membership in the system; provided that:
(A) The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment; and
(B) No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement;
(4) In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:
(A) The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;
(B) No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and
(C) Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; [[Struck through: or]]
(5) As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:
(A) The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;
(B) No agreement was entered into between the State or a county and the retirant prior to the retirement of the retirant, for the return to work by the retirant after retirement; and
(C) The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability[[Struck through: .]][Underlined: ; or]
[Underlined: (6)] [Underlined: In a position identified by the appropriate jurisdiction as unique and critical to operations; provided that:]
[Underlined: (A)] [Underlined: The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;]
[Underlined: (B)] [Underlined: No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement;]
[Underlined: (C)] [Underlined: Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; and]
[Underlined: (D)] [Underlined: Notwithstanding section 76-16(b)(17), the retirant hired after June 30, 2026, shall not be reemployed in a position identified as unique and critical to operations for a period exceeding four years in total. Upon reaching the four-year limit, the retirant shall separate from state or county employment.]
[Underlined: For the purpose of this subsection:]
[Underlined: "Unique and critical to operations" means positions that require a high degree of specialized knowledge and experience.]"[Underlined: ]
2. By amending subsection (f) to read:
"(f) No later than twenty days prior to the convening of each regular legislative session, the director of human resources of the appropriate state jurisdiction or the human resources management chief executive of each county shall submit an annual report to the legislature detailing the employment of retirants under paragraphs (4) [[Struck through: and]][Underlined: ,] (5)[Underlined: , and (6)] of subsection (d), including the number and positions of retirants."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on January 1, 2077.
Report Title:
Hawaii Council of Mayors Package; Retirants; Employment
Description:
Authorizes the rehiring of retirants for positions that are unique and critical to operations. Limits the duration of each retirant's reemployment to four years. Effective 1/1/2077. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.