HB 406 Summary

• Establishes a deferred retirement option program for police officers to improve recruitment and retention by incentivizing qualified officers to continue working beyond the 25-year service requirement.

• Allows police officers who meet normal retirement eligibility requirements to enroll in the program and have their service and benefit levels locked as of enrollment, with monthly pension payments deposited to a deferred retirement option program account earning investment returns.

• Sets maximum participation at 120 months with a tenure cap not exceeding 35 total years; enrollment must occur within 12 months of retirement eligibility and ceases if the officer cannot work actively for more than 20 working days.

• Specifies that program participants do not make retirement contributions, do not accrue additional service credit, receive retiree healthcare benefits, are ineligible for disability benefits, and cannot participate in deferred compensation plans.

• Modifies Hawaii Revised Statutes sections 88-9 and 88-98 to create exceptions for police officers enrolled in the deferred retirement option program regarding reemployment without system reenrollment.