Impact of New Retirement Rules: Smaller Pensions
05/13/2011EDITORS NOTE: This article was updated on June 3, 2011 to correct several errors and make it more precise about how employees in different plans would be affected.
When new retirement rules kick in next summer, state and county employees will have to work four extra years to earn a similar pension they would get under current rules.
Those hired after June 30, 2012 will have to work longer to earn retirement benefits, chip in more toward their plans and receive smaller pensions compared to existing employees under the changes proposed to the Hawaii Employees' Retirement System in House Bill 1038.
The bill, which awaits Gov. Neil Abercrombie's approval, is expected to save the state $440 million over the first five years. The changes initially would have been effective for those hired after this June, but the retirement system's administrator told lawmakers it needed time to prepare new materials and update its computer system.
