Bill > HB406

This bill establishes a Deferred Retirement Option Program (DROP) specifically for police officers in Hawaii, designed to incentivize experienced officers to remain in service beyond their normal retirement eligibility. Under this program, police officers who have reached normal retirement service requirements can voluntarily enroll within twelve months of eligibility, during which their current service and benefit levels will be "locked in" and their pension payments will be deposited monthly into a separate account that earns investment returns. Participants can remain in the program for up to 120 months (10 years) but cannot exceed a total of 35 years of service. While enrolled, officers are considered retirants but continue working, accruing sick and vacation leave (with vacation leave credits paid into their DROP account upon program termination), and receiving healthcare benefits as retirees. The program includes several restrictions: participants cannot pay into the retirement system, cannot receive disability benefits, will not accrue additional service credit, and cannot participate in deferred compensation plans. The bill aims to address recruitment and retention challenges in county police departments by providing an attractive option for experienced officers to extend their service while securing their retirement benefits.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=406&year=2026