Certain state employees including teachers and wastewater workers may not become eligible for retirement benefits sooner after all.
Gov. Josh Green made a last-minute addition to his intent to veto list on Tuesday, adding Senate Bill 935 to his list of 19 other bills he intends to overrule in part or in full.
SB 935 is broadly related to retirement benefits for various state employees. One of its components would open the door for certain state employees to receive their benefits sooner.
The measure would require the state to conduct a study into the potential impacts of allowing “tier 2 hybrid class members of the employee retirement system” to be eligible for benefits after only five years instead of the current 10.
“Tier 2 hybrid” employees include teachers, county workers, EMTs, adult corrections officers, sewer and wastewater workers, and more who became enrolled in the Hawai‘i Employees’ Retirement System after 2012.
The findings and recommendations of that study would be presented to the legislature in 2027, to be acted upon in future legislation.
The proposal was popular among several workers’ groups during the bill’s progress through the legislature. The Hawai‘i State Teachers Association wrote in March that reducing the period to five years will better incentivize people to pursue careers in public service in the state and address a shortage in both teachers and state workers as a whole.
“Our state and counties must explore new and alternative ways to recruit and retain a qualified workforce, especially at a time when government salary alone may not be enough to be considered an attractive career,” wrote Randy Perreira, executive director of the Hawai‘i Government Employees Association, in March. “Reports indicate that our state's workforce has a 24% vacancy rate.”
The other main component of the measure sets retirement benefits for state judges appointed beyond 2031.
Currently, state judges are eligible for retirement packages based on when they were appointed and how long they’ve served — for example, a judge older than 55 who began work between 1999 and 2012 would receive 3.5% of their average final pay, in addition to an annuity based on their accumulated contribution to their retirement plan.
Under the bill, judges who begin work after 2031 and retire above the age of 60 will receive 1.75% of their average final pay, on top of the annuity.
But Green’s decision Tuesday means that the bill is not likely to come to pass. While Green can still pass any bill on his intent to veto list, a statement from his office Tuesday described SB 935 as “one of the more complex pieces of legislation to emerge from the 2025 session,” and that adding it to the list “allows the Governor to have the time to make an informed and well-researched decision.”
Green has until July 9 to issue vetoes, after which all other bills will become law. Tuesday was the last day on which he could add a bill to his intent to veto list.
Aloha State Daily reached out to HSTA, HGEA and the Hawai‘i State Bar Association for comment.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter!
