The State of Hawaii Employees' Retirement System (ERS) is a qualified retirement plan under Section 401(a) of the Internal Revenue Code (Code). Generally, the code prohibits the distribution of retirement benefits prior to an employee's retirement. If a retiree is reemployed without a bona fide separation of service, the retiree may not be considered to be retired. To help bring clarity to circumstances under which a retiree may be reemployed without suspension of benefits, a new law (Act 179) was created and passed by the 2010 Hawaii State Legislature. This new law supersedes Act 156 (SLH 2008) and takes effect January 1, 2011.

Some of the highlights of Act 179 include:

• A retiree can be employed into a casual position if the retiree has had a six (6) consecutive calendar month break (from their official retirement date) where the retiree was not employed by any state or county agency. Casual employment includes all certificated and classified casual jobs, including all substitute employment, coaching, 89 day hires and temporary contract employees (15Z).
  
  
• A retiree can be employed in a contracted position identified as a labor shortage or difficult-to-fill position if the retiree has had twelve (12) consecutive calendar month break (from their official retirement date) where the retiree was not employed by any state or county agency.
  
  
• A retiree can be employed as a teacher or administrator in a teacher shortage area identified by the Department of Education or in a charter school or as a mentor for a new classroom teacher if the retiree has had a twelve (12) consecutive calendar month break (from their official retirement date) where the retiree was not employed by any state or county agency.

Note: Act 179 prohibits the re-employment of a retiree if prior agreements were made to rehire the retiree prior to their retirement.

• Retirees employed in violation of Act 179 may have to:
  
  
  1. Reimburse all pension benefits received during the period or periods of rehire (plus interest).
     
     
  2. Pay any retirement system contribution (plus interest) that would have otherwise have been paid during the period or periods of rehire.
     
     
  3. Will be liable to pay all administrative expenses incurred in addressing the situation if the retiree is found to be at fault.

Should you have any questions, the DOE Office of Human Resources is available to respond to your inquiries:

• Kerry Tom, Classified Personnel
  kerry_tom@notes.k12.hi.us
  586-3473
  
  
• Jeffrey Hoover, Educational Officers
  jeffrey_hoover@notes.k12.hi.us
  587-5527
  
  
• Wilfred Keola, Jr., Casual Certificated Personnel
  wilfred_keola@notes.k12.hi.us
  587-8533
  
  
• Jeanetta Ma, Substitute Teachers
  jeanetta_ma@notes.k12.hi.us
  586-3267/586-3295

© Hawaii State Department of Education, P.O. Box 2360, Honolulu, HI 96804; Physical address: 1390 Miller St, Honolulu, HI 96813; phone: 808-586-3230; fax: 808-586-3234. All rights reserved. For problems/questions concerning this web site, please email the webmaster. Links to other web sites should not be considered an endorsement. DOE is not responsible for the content of external web sites.

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