Bill > SB470

This bill establishes a Deferred Retirement Option Program (DROP) specifically for police officers in Hawaii, designed to incentivize qualified officers to continue working beyond their 25-year service requirement. Under this program, eligible police officers can enroll within 12 months of reaching normal retirement age and participate for up to 120 months (10 years), not exceeding 35 total years of service. When enrolled, the officer's service and benefit levels are locked, and their monthly pension payments are deposited into a separate account that earns investment returns. Participants are considered retirees, receive healthcare benefits, and can accrue sick and vacation leave, with vacation leave credits being paid into their DROP account upon program termination. Key restrictions include: participants cannot pay into the retirement system, cannot receive disability benefits, will not accrue additional service credit, and cannot receive deferred compensation. The program aims to address recruitment and retention challenges in county police departments by providing a financial incentive for experienced officers to remain in service. The bill modifies existing statutes to accommodate this new retirement option and will take effect upon approval.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=470&year=2026