Bill > HB1082

This bill modifies the Employees' Retirement System (ERS) by reducing the minimum years of credited service required for Tier 2 members (those who became members after June 30, 2012) to achieve vested benefit status from ten years to five years, effective July 1, 2027. The bill aims to help state and county employers with recruitment and retention of qualified employees by making retirement benefits more accessible. To offset the potential financial impact, the bill also increases employer contribution rates slightly, from 24 percent to 24.19 percent for general employees and from 41 percent to 41.19 percent for public safety workers. The legislature determined that this change would only marginally extend the system's projected full funding period by approximately four months. The bill applies to different employee classes (A, B, and H) and provides specific provisions for members who are in service as of or return to service after July 1, 2027, ensuring they can qualify for retirement benefits with five years of service instead of the previous ten-year requirement. Additionally, the bill preserves existing rights and obligations for members who became vested before the effective date.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1082&year=2025