HI SB2120

State, legislative, and county employees separating from employment may elect to transfer accrued vacation and sick leave if rehired by the State or any county government within one calendar year of separation.

Employees must provide notice of their election to transfer benefits no later than 90 days after their separation date.

The allowable "break in service" period for determining employer contributions to the Hawaii Employer-Union Health Benefits Trust Fund extends from 90 calendar days to 180 calendar days for employees who leave on or after July 1, 2026 and elect the longer period.

Employees who do not affirmatively elect the 180-day period remain subject to the existing 90-day break in service threshold.

The Act takes effect January 1, 2077, and does not diminish any more favorable transfer provisions in existing collective bargaining agreements.