HI SB3099

Reduces the minimum credited service requirement for Tier 2 ERS members (those who joined after June 30, 2012) from 10 years to 5 years to be eligible for vested benefit status and service retirement allowance.

Applies the 5-year vested benefit requirement to Tier 2 members who are in service as of July 1, 2025, or who return to service or become members after June 30, 2025.

Modifies sections 88-62, 88-73, 88-96, 88-331, 88-338, and 88-341 of Hawaii Revised Statutes to implement the reduced service requirement across multiple retirement benefit provisions and member classifications.

Establishes that actuarial analysis determined reducing the requirement would extend the full funding period by only approximately 4 months and would not require increases in contribution rates.

Appropriates funds from general revenues for fiscal year 2024-2025 for ERS investments and takes effect July 1, 3000 (except appropriation provision effective July 1, 2024).