HB 813 Hawaii House · 2025 Regular Session

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

Summary

Reduces the minimum number of years of credited service from ten years to five years qualified Tier 2 employee's retirement system members must have to be eligible for vested benefit status for service retirement allowance purposes. Appropriates funds. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 17, 2025 Last action Feb 11, 2025

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What changed between versions

HB813 → HB813_HD1 · 6 edits

MODERATE

This bill reduces the minimum credited service requirement from ten years to five years for Tier 2 members (those who became members after June 30, 2012) to be eligible for vested retirement benefits. The change aims to help employers recruit and retain employees while having minimal impact on the retirement system's funding timeline. It also updates related statutes governing when members can withdraw contributions and when they become eligible for retirement allowances.

Scope change

The bill applies to employees who became members of the Employees' Retirement System after June 30, 2012 (Tier 2 members), reducing their service requirement from ten years to five years for vested benefits.

ELIGIBILITY

Reduced the minimum credited service requirement from ten years to five years for Tier 2 members to qualify for vested retirement benefits.

REQUIREMENT

Updated Hawaii Revised Statutes sections 88-62, 88-73, 88-96, 88-331, 88-338, and 88-341 to reflect the new five-year service requirement for vested benefits and related contribution rules.

TIMELINE

Added specific transition dates (July 1, 2026 and June 30, 2026) for members returning to service after leaving employment, with different rules applying based on when they return.

DEFINITION

Updated definitions of 'requisite years of credited service' and 'normal retirement age' in multiple statutes to align with the new five-year threshold for certain member classes.

FISCAL

Appropriated funds from general revenues for fiscal years 2025-2026 and 2026-2027 to implement the changes, though no specific dollar amount is listed.

ENFORCEMENT

Modified rules for when former members can withdraw accumulated contributions and when they lose membership service credit upon returning to service.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 11, 2025

Committee

Reported from LAB (Stand. Com. Rep. No. 319) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 4, 2025

Lower · Passed

The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kong, Reyes Oda.

lower

Jan 21, 2025

Committee

Referred to LAB, FIN, referral sheet 2

lower

Jan 21, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 17, 2025

Introduced

Pending introduction.

lower

5 primary · 0 co-sponsors