Report Title:

Public Employees; Re-Employment of Retirees by Counties

 

Description:

Allows a county to hire state or county government employees retired at least a year for labor shortage or critical to fill positions.  Requires county employers to pay employer contributions.  (SB2710 SD2)

 


THE SENATE

S.B. NO.

2710

TWENTY-FOURTH LEGISLATURE, 2008

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO THE RE-EMPLOYMENT OF RETIREES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature recognizes the changing demographics of the workforce -- the workforce is aging with an increasing number of state and county employees becoming eligible to retire with full retirement benefits.  The legislature also recognizes that life spans have increased, not only because of advances in medicine and technology, but because people are choosing to live healthier lifestyles.

     The legislature understands that with the low unemployment rate the State is now experiencing, county governments have more vacancies occurring with a dwindling number of qualified applicants.  The counties have many jobs categorized as hard-to-fill, or as being in a labor-shortage category.

     In 2008, an estimated 12.84 per cent of county public employees are eligible to retire and by 2012, the figure is anticipated to rise to 25.12 per cent.  As the baby boomers begin to retire, vacancies in government employment will continue to increase. 

     While retired state and county employees are now permitted to work for temporary periods of eighty-nine consecutive days or for less than twenty hours per week without jeopardizing their retirement benefits, there is no reason not to afford the county governments the ability to hire state and county government retirees regardless of the length of time or number of hours employed, especially since they will otherwise work for the private sector.

     This Act will address the employment vacancy issue by allowing county employers to recruit from the same group of qualified applicants as private employers and put county government employers on an equal footing with private sector employers in hiring state and county retirees.

     The legislature intends that the manner in which civil service and exempt positions are filled by retired state or county employees and the manner in which the employed-retiree's status is determined, shall be in accordance with normal processes for recruiting and selecting applicants for these positions.  The legislature understands that for county civil service positions, this process will provide due consideration to promotional opportunities for existing employees.  To ensure the continued provision of public services, the legislature supports the immediate rehiring of government retirees.  Further, the legislature intends that the collective bargaining status of these employed-retirees will be determined in accordance with existing laws governing assignment to, and inclusion or non-inclusion in, a bargaining unit.

     The legislature believes this Act will strike a balance between the county government's need to hire skilled and qualified employees and retired state and county government employees' desire to work for county governments.  This Act will allow retired state and county government employees to work for county governments without incurring any negative retirement consequences, such as the forfeiture of retirement benefits already earned and being collected by employees.

     SECTION 2.  Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§88-    Re-employment of retirants.  (a)  Appointing authorities in a county may employ retired state or county government employees who are receiving retirement benefits under this chapter.

     (b)  In order to qualify for a position of at least one-half of a full-time equivalent under this section, the retired state or county government employee shall have been retired for at least one calendar year prior to reemployment.

     (c)  Retired state or county government employees may be rehired under this section for labor shortage positions and for other positions that are deemed by the human resources management chief executive to be critical-to-fill.

     (d)  Retired state or county government employees rehired for civil service positions shall be recruited, selected, and employed pursuant to applicable civil service and employment laws.

     (e)  The appointing authority and the retired state or county government employee who is rehired shall certify that no agreement to rehire the employee was made prior to the employee's retirement.

     (f)  The human resources management chief executive of the respective county in which a retired state or county government employee is hired by that county shall certify the hiring of the retirant as having been done pursuant to applicable civil service and employment laws.

     (g)  Sections 88-21, 88-42.5, 88-43, 88-45, 88-46, 88-98, 88-273, 88-326, and 88-344, and any other law to the contrary notwithstanding, retired state or county government employees who are hired by any of the counties shall not earn retirement service credit, contribute to the retirement system, or gain additional retirement system benefits as a result of their subsequent employment with a county and the retired state or county government employee shall continue to receive the retirant's retirement benefits and health benefits without penalty.

     (h)  This section shall not preclude a retired state or county government employee from returning to work and relinquishing the person's retirement benefits to earn additional service credits and gain additional retirement benefits for a future retirement date as may be allowed by this chapter.

     (i)  County employers shall contribute to the pension accumulation fund the required percentage of the rehired employee's compensation to amortize the system's unfunded actuarial accrued liability."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2080.