Report Title:

Separation Incentives.

 

Description:

Clarifies that DHRD's authority for separation incentives is limited to the various departments and agencies of the state executive branch,  excluding the DOE and Hawaii Health Systems Corporation.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1366

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO SEPARATION INCENTIVES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Act 253, Session Laws of Hawaii 2000, is amended by amending section 113 to read as follows:

     "SECTION 113.  [As used herein:] For the purposes of this part:

     "Directly affected" means an employee who receives official reduction-in-force notification of displacement from the employee's position as a result of a senior employee exercising reduction-in-force rights.

     "Employee" means an individual in a position covered by chapter 88, Hawaii Revised Statutes, that has been identified for abolishment or directly affected as a result of a reduction-in-force or workforce restructuring plan, but excludes any elected or appointed official and school level personnel with the department of education engaged in administrative or instructional work, such as, principals and teachers.

     ["Jurisdiction"] "Other jurisdictions" means the city and county of Honolulu, the county of Hawaii, the county of Maui, the county of Kauai, the department of education, the judiciary, the Hawaii health systems corporation, the office of Hawaiian affairs, and the legislative branches of the State and county governments.

     "Reduction-in-force" includes layoff under chapter 76 Hawaii Revised Statutes.

     "State executive branch" includes [the department of education and] the University of Hawaii, but excludes the Hawaii health systems corporation and the department of education, which [is] are considered [a] separate personnel [jurisdiction] jurisdictions under this part."

     SECTION 2.  Act 253, Session Laws of Hawaii 2000, section 115, is amended by amending subsections (b), (c), (d), and (e) to read as follows:

     "(b)  Any employee who elects to retire and receive the special retirement incentive benefit under this section shall notify the employee's employing department and file a formal application for retirement with the employees' retirement system not less than thirty days nor more than [ninety] one hundred fifty days prior to the date of retirement.

     (c)  Notwithstanding the age and length of service requirements of sections 88-73 [and], 88-281, and 88-331, Hawaii Revised Statutes, an employee member shall qualify for the special retirement incentive benefit if, on the employee's retirement date, the employee meets any one of the following criteria:

     (1)  Has at least ten years of credited service as a contributory class A or B member and is at least fifty years of age;

     (2)  Has at least twenty years of credited service as a contributory class A or B member, irrespective of age;

     (3)  Has at least ten years of credited service as a noncontributory class C member or as a class H member and is at least fifty-seven years of age; or

     (4)  Has at least twenty-five years of credited service as a noncontributory class C member[,] or as a class H member, irrespective of age.

     (d)  Any employee who exercises the option of the special retirement incentive benefit under this section because the employee does not qualify with respect to the age and length of service requirements under sections 88-73 [and], 88-281, and 88-331, Hawaii Revised Statutes, to receive a retirement benefit without penalty, shall not have the retirement benefit reduced in accordance with the actuarial formula normally used by the employees' retirement system for the calculation of early retirement benefits.

     (e)  The head of each affected department shall transmit a list of employees who elected and received the special retirement incentive benefit to the board of trustees of the employees' retirement system not less than thirty days but not more than [ninety] one hundred fifty days prior to the employee's retirement date.  The head of each affected department shall certify that the employees on the list have in fact selected the special retirement incentive benefit in lieu of receiving the voluntary severance benefit and exercising any reduction-in-force rights under chapter 89 or 89C, Hawaii Revised Statutes, as applicable."

     SECTION 3.  Act 253, Session Laws of Hawaii 2000, is amended by amending section 120 to read as follows:

     "SECTION 120.  The departments of human resources development and budget and finance shall develop and administer guidelines and timeframes for [participating agencies] the various departments of the state executive branch to implement the voluntary separation and special retirement incentive benefits under this part.

     The department of human resources development, the department of labor and industrial relations, the employees' retirement system, and the [public employees health fund] Hawaii employer-union health benefits trust fund shall work cooperatively to ensure that briefings are provided prior to the implementation of any workforce restructuring plan to educate the employees of the various departments of the state executive branch whose positions are being abolished or who are directly affected by a reduction-in-force or workforce restructuring plan.

     The department of human resources development and the department of budget and finance shall report to the legislature on any restructuring or reengineering activities initiated as a consequence of this part within the various departments of the state executive branch no later than twenty days prior to the convening of each regular session beginning with the 2001 regular session.

     The report shall include but not be limited to a description of the abolished positions [and], an explanation as to how the new workforce structure will more efficiently serve the needs of the agency's clients, and a listing of the appropriate criteria by which to measure the new workforce structure’s effectiveness."

     SECTION 4.  Act 253, Session Laws of Hawaii 2000, is amended by amending section 122 to read as follows:

     "SECTION 122.  Optional participation [by a county, the judiciary, the Hawaii health systems corporation, the office of Hawaiian affairs, or the legislative branch of the State or a county.] by other jurisdictions.  The city and county of Honolulu, the county of Hawaii, the county of Kauai, the county of Maui, the department of education, the judiciary, the Hawaii health systems corporation, the office of Hawaiian affairs, or the legislative branch of the State or a county may opt to provide the special retirement incentive benefit under section 115 to their respective employees under an official reduction-in-force or a workforce restructuring plan[; provided that the special retirement incentive is in lieu of any voluntary severance benefit that may be offered under its plan and is consistent with all of the provisions in section 115.] as defined by its separation incentives program guidelines and timeframes developed and administered by the respective jurisdictions.

     In no event may any civil service employee elect and receive a combination of reduction-in force, voluntary severance, or special retirement incentive benefits when directly affected by a reduction-in-force or workforce restructuring plan.  Whenever any of the other jurisdictions, as defined by this part, opts to provide the special retirement incentive benefit, the jurisdiction's separation incentive guidelines and use of the special retirement incentives shall be consistent with all of the provisions in section 115.

     All references to the [State] state executive branch in [section] sections 115, 116, 117, 118, 119, and 120 shall [include the jurisdiction] apply to any other jurisdictions, as defined by this part, opting to provide the special retirement incentive benefit.  The chief executive or other appropriate authority of each of the respective other jurisdictions shall ensure that approval of its respective legislative body is obtained[, if required,] before offering the special retirement incentive under section 115."

     SECTION 5.  Act 253, Session Laws of Hawaii 2000, as amended by Act 131, Session Laws of Hawaii 2002 is amended by amending section 124 to read as follows:

     "SECTION 124.  This part shall be repealed on June 30, [2008.] 2013."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST