Relating To The University Of Hawaii Optional Retirement System.
Impact
This bill alters the landscape of retirement benefits for employees at the University of Hawaii, as it creates the option for two distinct retirement systems for different groups of employees. The main stipulation is that individuals hired after the establishment of this optional retirement system must choose between joining the state employees' retirement system or the new optional system, with no transfer allowed once a decision is made. This could lead to significant changes for employee financial planning and retirement security in the university system.
Summary
SB3185 proposes to amend existing legislation concerning the University of Hawaii's Optional Retirement System, allowing for the expansion of membership to include employees who are part of bargaining unit (8) and certain other employees excluded from this unit. The bill empowers the University of Hawaii's Board of Regents to establish a separate retirement system that operates independently of the state employees' retirement system, which could potentially offer different retirement benefits.
Contention
One point of contention involves the lack of public notice and hearing requirements that are typically mandated before establishing a new retirement system. Opponents may argue that this exclusion undermines transparency and public participation in the decision-making process, potentially affecting employees' understanding of their retirement options. Furthermore, the decisions made by employees in their retirement elections could have long-term fiscal implications for both the individuals and the university system, drawing concern from stakeholders regarding the sustainability and attractiveness of the newly proposed system.