Bill > SB935

This bill makes two primary changes to Hawaii's retirement system for public employees. First, it modifies the retirement allowance calculation for judges who first earn credited service after June 30, 2031, reducing their retirement benefit from 3% to 1.75% of their average final compensation for each year of credited service. Second, the bill requires the Department of Human Resources Development to conduct a comprehensive study examining the potential impacts and benefits of reducing the vesting period for Tier 2 hybrid class members of the Employees' Retirement System from 10 years to 5 years. To support this study, the bill appropriates $300,000 for fiscal year 2025-2026 and mandates that the department submit a report with findings and recommendations to the legislature prior to the 2027 regular session. A "Tier 2 hybrid class member" is defined as a person who became a member of the retirement system under Part VIII of Chapter 88 after June 30, 2012. The bill will take effect on July 1, 2025, and explicitly states that it does not affect retirement rights, benefits, or proceedings that were already in place or begun before its effective date.

Budget and Finance, Justice, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=935&year=2025