HI HB2359

Establishes a five-year pilot program allowing Hawaii to rehire state retirees into hard-to-fill positions for terms exceeding the current 89-day contract limit.

Retirants rehired under this program are exempt from civil service requirements and excluded from the employees' retirement system during their reemployment.

Hired retirants will not qualify as "employee-beneficiaries" for health benefits plans under the Hawaii Employer-Union Health Benefits Trust Fund during their reemployment period, effective for those hired after June 30, 2026.

Employers must contribute the required percentage of rehired retirants' compensation to the pension accumulation fund to amortize unfunded actuarial accrued liability.

The program requires a 12-month separation period before reemployment and prohibits pre-retirement return-to-work agreements between the retirant and the State or county.