HB2445 Summary

• Creates new chapter in Hawaii Revised Statutes establishing a privatized employees' retirement system benefits program for public employees whose positions are privatized.

• Eligible employees are those whose full-time, permanent public positions are converted to private sector positions due to privatization of government operations or facilities.

• Requires governmental agency head to submit resolution to employees' retirement system board of trustees, with board directing actuarial analysis to determine if privatization results in net gain or net loss to the system.

• Extends retirement system coverage to eligible privatized employees if actuarial analysis shows net gain to system, or if net loss exists but agency pays lump sum equal to the loss plus interest.

• Covered employees retain all retirement system rights and benefits as if privatization had not occurred, including class membership, vesting, disability retirement, and death benefits; bill takes effect January 7, 2059.