HB 2359 Hawaii House · 2026 Regular Session

RELATING TO RETIRANTS.

Summary

Establishes a five-year pilot program allowing retirants to be rehired for exempt service for one-year terms under certain circumstances. Provides that retirants employed under the program are excluded from the Hawaii Employer-Union Health Benefits Trust Fund and will not experience an interruption of pension benefits. Requires an employer of a retirant under the program to contribute to the Employees' Retirement System. Requires the Department of Human Resources Development to submit a report to the Legislature. Sunsets 6/30/2031. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 27, 2026 Last action Feb 20, 2026

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What changed between versions

HB2359 → HB2359_HD1 · 5 edits

MODERATE

This bill revision updates the effective date and sunset provisions to July 1, 3000, and June 30, 2031, respectively, while clarifying eligibility rules for rehired retirees. It extends the waiting period for reemployment from six to twelve months and adds a new requirement that no pre-retirement employment agreement could have existed. The changes aim to reduce administrative turnover and ensure cost neutrality by tightening eligibility criteria and extending the program's lifespan.

Scope change

The bill's scope is extended significantly by changing the effective date to the distant year 3000 and the sunset date to 2031, moving it from an immediate or short-term measure to a long-term statutory framework.

TIMELINE

The effective date was changed to July 1, 3000, and the sunset date was set to June 30, 2031, extending the program's duration by decades.

ELIGIBILITY

The waiting period before a retiree can return to work was increased from six calendar months to twelve calendar months.

A new condition was added stating that no agreement for future employment could have been made between the retiree and the employer before the retirement occurred.

The definition of 'employee-beneficiary' was updated to explicitly exclude retirees hired after June 30, 2026, from specific health benefit plan inclusions.

REQUIREMENT

The contribution requirement for employers was clarified to specify that contributions must go to the 'pension accumulation fund' to amortize unfunded liabilities.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2026

Committee

Reported from LAB (Stand. Com. Rep. No. 628-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 17, 2026

Lower · Passed

The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.

lower

Feb 2, 2026

Committee

Referred to LAB, FIN, referral sheet 6

lower

Jan 28, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 27, 2026

Introduced

Pending introduction.

lower

15 primary · 0 co-sponsors