HI HB813

Reduces the minimum credited service requirement for "Tier 2" members (those who joined the Employees' Retirement System after June 30, 2012) from 10 years to 5 years to qualify for vested benefit status and service retirement allowance eligibility

Applies to Tier 2 members who are in service as of July 1, 2026, or who return to service or become members after June 30, 2026

System actuaries determined this change would extend the projected full funding period by only an estimated 4 additional months and would not require increased contribution rates

Maintains existing 5-year vesting requirement for "Tier 1" members (those who became members before July 1, 2012), creating parity between the two tiers

Appropriates unspecified funds for fiscal years 2025-2026 and 2026-2027 to implement the changes, with an effective date of July 1, 3000 (placeholder date)