Bill > HB813

This bill reduces the minimum number of years of credited service required for Tier 2 employees (those who became members of the Employees' Retirement System after June 30, 2012) to qualify for vested benefit status from ten years to five years, effective July 1, 2026. The bill aims to help state and county employers with recruitment and retention of qualified employees by making retirement benefits more accessible. The changes apply to different employee classes (A, B, and H), modifying various sections of Hawaii Revised Statutes to lower the service credit requirement. System actuaries determined that this change would only marginally impact the system's projected full funding period (by approximately four months) and would not require increased contribution rates. The bill preserves existing rights for members who became employees before the specified dates and ensures that the changes do not affect previously matured rights, vested benefits, or ongoing retirement proceedings. Additionally, the bill includes an appropriation of funds to support the implementation of these changes in the 2025-2026 and 2026-2027 fiscal years.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=813&year=2026