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Bill

GM 1213

Informing the Legislature that on June 8, 2026, the Governor signed the following bill into law: SB99 SD1 HD1 CD1 (ACT 113).

2026 Regular Session

Hawaii allows retirees to return to work in expanded categories without reenrollment or losing benefits, including shortages in education, law enforcement, and certain state roles,

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Bill Summary · GM 1213

Executive Summary

  • Purpose: Senate Bill 99, SD 1, HD 1, CD 1 (Act 113) broadens the categories of retirees who may return to work in Hawaii without reenrolling in the Employees’ Retirement System and without losing retirement benefits. It also updates reporting requirements. The bill takes effect July 1, 2026.

Key Provisions

  • Expansion of reemployment categories (amends §88-9(d)):

    • Retirees may be employed without reenrollment and without benefit loss in these additional scenarios: 1) Elective officers ( Hawaii Revised Statutes §88-42.6(c)) or legislators (§88-73(d)). 2) Jurors or precinct officials. 3) Part-time or temporary employees excluded from membership (including session employees) or other workers expressly excluded by law, provided:
      • Retiree did not work for the State or county during the six calendar months prior to reemployment.
      • No pre-retirement agreement for return-to-work exists. 4) Positions identified by the relevant jurisdiction as labor-shortage or difficult-to-fill (see specifics below), with conditions:
      • Retiree did not work for State/county in the 12 months before reemployment.
      • No pre-retirement return-to-work agreement.
      • Employer must contribute to the Pension Accumulation Fund to amortize unfunded actuarial liability.
      • Employers must use defined criteria to certify labor shortage or difficulty-to-fill status (detailed vacancy-rate tests and definitions for class, geographic area, or sustained vacancies). 5) Teachers or administrators in teacher-shortage areas (DOE or charter schools) or as mentors for new teachers, with conditions:
      • 12-month non-employment prior to reemployment.
      • No pre-retirement return-to-work agreement.
      • DOE/charter must contribute to the Pension Accumulation Fund.
      • DOE/charter must use specific vacancy-rate criteria or similar shortage indicators. 6) School Resource Officers (SROs) identified as labor-shortage or difficult-to-fill:
      • 12-month non-employment prior to reemployment.
      • No pre-retirement return-to-work agreement.
      • Law enforcement agency must contribute to the Pension Accumulation Fund.
      • SROs must be stationed at a public school.
      • Agencies must use vacancy-rate criteria or extension of continuous active recruitment vacancy tests.

  • Reporting requirement (amends §88-9(f)):

    • By no later than 20 days before the convening of each regular legislative session, the director of human resources (for state) or HR chief executive (for counties) must submit an annual report detailing retiree employment under the relevant subsections (d)(4) through (6), including numbers and positions.

  • Repeal/technical clarifications:

    • The bill clarifies and updates cross-references and formatting, with the statutory text indicating modifications to the existing subsections and the addition of underscored material in the enacted version.

  • Effective date:

    • July 1, 2026.

Affected Parties and Impacts

  • Retired state and county employees in Hawaii:
    • May return to work in a broader set of roles without losing retirement benefits and without reenrollment, subject to specified conditions and funding requirements.
  • Employers (state, counties, and relevant departments/agencies):
    • Must ensure certain funding contributions to the Pension Accumulation Fund when rehiring retirees under these new categories.
    • Must apply defined labor-shortage criteria to identify eligible positions.
  • Education sector:
    • DOE and charter schools gain flexibility to rehiring retirees as teachers, administrators, or mentors in shortage areas or related roles, with ongoing funding obligations to the pension system.
  • Law enforcement:
    • SRO rehiring in schools is expanded under the same framework, with funding and vacancy-criteria requirements.

Procedural and Timeline Aspects

  • Legislative path: Passed the Senate and House in May 2026; signed into law by the Governor on June 8, 2026.
  • New law effective date: July 1, 2026.
  • Annual reporting: Requires timely submission of retiree employment data ahead of each legislative session (deadline: 20 days before session convening).

Notes

  • The bill introduces concrete vacancy-rate and geographic-area criteria to verify labor shortages or difficult-to-fill positions, using methodology such as vacancy rates and continuous active recruitment periods.
  • It preserves protections against retroactive or pre-retirement return-to-work agreements and ensures actuarial funding to mitigate unfunded liabilities.

Compiled from official sources — confirm details with the bill’s official record.

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