Bill > SB273

This bill establishes a Deferred Retirement Option Program (DROP) specifically for police officers who have reached normal retirement service requirements. Under this program, eligible police officers can continue working while having their pension benefits and service levels locked at the time of program enrollment. Participants can stay in the program for up to 120 months (10 years), but their total service cannot exceed 35 years. During enrollment, participants will have their monthly pension payments deposited into a separate account that earns investment returns, which they can receive upon program termination. Key provisions include: participants must enroll within 12 months of retirement eligibility, they will not pay into the retirement system, they will continue to accrue sick and vacation leave (with vacation leave paid out upon program exit), and they will receive retiree healthcare benefits. Importantly, participants are considered retirants, cannot receive disability benefits, will not accrue additional service credit, and cannot participate in other deferred compensation plans. The bill aims to incentivize experienced police officers to remain in service by offering financial flexibility and benefits, addressing recruitment and retention challenges faced by county police departments.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=273&year=2026