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Details of S.B. 2077 - Affects Certain HHSC Maui Region Members

May 10, 2016

After much hard work and lobbying this legislative session by both staff and members, we were able to pass a corrected version of S.B. 2077 to help many of those adversely affected by the privatization of the Hawaii Health Systems Corporation, Maui Region. The Senate and House of Representatives passed the corrected version unanimously.
 
From the start of the session, HGEA's intent was to achieve relief for members who were close to reaching significant milestones in their public service careers but were not able to due to the unprecedented privatization of Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital.
 
In its final form, S.B. 2077 provides options to help employees directly affected. It offers a choice of either a cash severance or a special early retirement in lieu of using reduction-in-force rights and when separating from government employment.  
 
The severance or special early retirement benefit is in addition to any payment owed to the employee, including accumulated unused vacation allowance or compensatory time credit. Please check with the Employees Retirement System (ERS) directly regarding credible years of service calculations.
 
Note: S.B. 2077 does not become law until and unless the Governor either signs it or lets it pass without his signature. He also has a veto option.
 
Separation Options:
 
Cash severance: up to 50% of employee's base salary
(one-time lump sum cash bonus calculated at 5% of the employee’s base salary for every year of service worked, not to exceed 10 years or 50% of base salary)
 
OR
 
Special retirement: amended retirement criteria for pension (Employees’ Retirement System) and retirement health care benefits (Employer-Union Health Benefits Trust Fund).

  • Pension calculation via the ERS
    • Contributory member: at least 5 years of credited service and is at least 50 years old; OR at least 20 years of credited service, irrespective of age
    • Noncontributory member: at least 10 years of credited service and is at least 57 years old; OR at least 25 years of credited service, irrespective of age
    • Hybrid member, prior to July 1, 2012: at least 5 years of credited service and is at least 57 years old; OR at least 25 years of credited service, irrespective of age
  • Retirement health care benefits via the EUTF*
    • Employees with 9 – 12 years of service: 50% of the monthly contribution
    • Employees with 12 – 20 years of service: 75% of the monthly contribution
    • Employees with 20 years of service or more: 100% of the monthly contribution

 * Employees who were hired after June 30, 1996 but before July 1, 2001 with dependent-beneficiaries pursuant to §87A-1, Hawaii Revised Statutes, are also eligible for a monthly contribution, as applicable.

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