Bill > HB1082

This bill modifies the Hawaii Employees' Retirement System (ERS) by reducing the minimum years of credited service required for Tier 2 employees to become eligible for vested benefit status from ten years to five years, effective July 1, 2027. Currently, employees who became members after June 30, 2012 (Tier 2 members) must have ten years of service to qualify for retirement benefits, while employees who became members before July 1, 2012 (Tier 1 members) only need five years. The bill aims to help state and county employers with employee recruitment and retention 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 employees starting in fiscal year 2025-2026. The legislation specifically applies to different employee classes (A, B, and H) and provides a gradual transition, ensuring that members who are in service as of July 1, 2027, or who return to service after that date, will be subject to the new five-year service requirement. The bill does not affect previously matured rights, duties, or ongoing retirement processes.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1082&year=2026