Ratification Results:
All units voted to approve the Memorandum of Understanding to integrate the school year differential into annual base pay. This means that the compensation earned from school year differentials will continue to be creditable as compensation when calculating an employee’s retirement benefit.
See below for voting results by unit groups:
BU 2 – SFSM
Total votes cast: 70
Total yes votes: 70
Percentage: 100%
BU 3 – EA, CA, TA, SSA
Total votes cast: 1,042
Total yes votes: 1,040
Percentage: 99.81%
BU 3 – SHA
Total votes cast: 82
Total yes votes: 82
Percentage: 100%
BU 4 – SSSO
Total votes cast: 1
Total yes votes: 1
Percentage: 100%
BU 13 – SSP
Total votes cast: 111
Total yes votes: 111
Percentage: 100%
Overview
HGEA has negotiated and reached an agreement with the DOE to integrate the existing school year differential into the annual base salary of affected 10-month classified employees in bargaining units 3, 4 and 13 and School Food Service Managers in bargaining unit 2. Without this agreement, affected employees will be negatively impacted as the compensation they earned as the school year differential will no longer be creditable toward their retirement benefit calculation beginning July 1, 2023.
The Employees’ Retirement System notified the DOE that a 2012 revision to Chapter 88.21.5 Compensation of the Hawaii Revised Statutes excludes the school year differential as compensation creditable toward an employee’s retirement benefit calculation for employees who started after June 30, 2012. The DOE was also notified that this change would take effect on July 1, 2023.
The purpose of this Memorandum of Understanding is to ensure that the compensation earned from the school year differential continues to be creditable as compensation when an employee’s retirement benefit is calculated for employees who started after June 30, 2012.
Background:
- Since the 1998-1999 school year, 10-month DOE classified employees in bargaining units 3, 4 and 13 and bargaining unit 2 School Food Service Managers have received, in addition to their base salary, compensation which has been called a school year differential for the additional school and work days that were added to the DOE school calendar.
- Chapter 88-21.5 Compensation of the Hawaii Revised Statutes defines ‘compensation’ for the purpose of calculating an eligible employee’s retirement benefit. In 2012, the legislature revised the definition of ‘compensation’ for employees who started after June 30, 2012. In September 2022, the Employees’ Retirement System notified the DOE that the 2012 revision excludes the school year differential as compensation creditable toward an employee’s retirement benefit calculation for those who started after June 30, 2012.
- Subsequently, the ERS notified the DOE that effective July 1, 2023, the school year differential would no longer count as compensation creditable toward an employee’s retirement benefit calculation. The DOE requested and was granted an extension to continue discussions with HGEA to reach a resolution that would be effective retroactive to July 1, 2023.
- According to the DOE, the department worked internally through the end of 2022 to develop options to address the situation so affected employees would not be negatively impacted. After consulting with DHRD (the state’s central personnel agency) earlier this year, the DOE first notified HGEA of the ERS’s position at the end of June 2023.
What the MOU does:
- It ensures that the additional compensation first negotiated and implemented during the 1998-1999 school year in the form of a ‘differential’ for a longer school and work year continues to be treated and defined as compensation creditable toward an employee’s retirement benefit calculation, regardless if you started before or after June 30, 2012.
- It integrates the school year differential into an employee’s annual base pay so that the total compensation earned continues to be creditable toward the calculation of an employee’s retirement benefit.
It is recommended that you vote ‘YES’ to approve this MOU. All HGEA members who are current 10-month classified employees in BUs 3, 4 and 13 or BU 2 School Food Service Managers are eligible to vote regardless of when they started employment with the DOE.
If ratified, the status quo will be maintained and any negative impact on the affected employees will be avoided. There will be no negative impact on compensation you receive in your paycheck and what was formerly identified as the school year differential in your paycheck will now be combined and included as part of your base salary.
View Memorandum of Understanding
These are listed by respective classification. The information in the overview section applies to all MOUs below:
- School Food Service Managers (BU 2)
- Communication Aides, Educational Assistants, School Security Attendants and Teaching Assistants (BU 3)
- School Health Assistants (BU 3)
- School Safety and Security Officers (BU 4)
- Special Services Personnel – Audiologists, Human Services Professionals, Psychological Examiners, District-Based School Psychologists, Social Workers and Speech Language Pathologists (BU 13)
Voting Information
- All voting will be done through electronic ballot.
- Voting starts on Tuesday, Oct. 17, 2023, and will remain open until 4:30 p.m. on Friday, Oct. 20, 2023.
- On Oct. 17, an electronic ratification ballot will be sent to your personal email address from “HGEA Ballot,” with the subject, “BALLOT: HGEA DOE School Year Differential MOU Ratification.”
- If you do not see a ballot email in your personal inbox on Oct. 17, check your Junk Mail or Spam folder. Or go to https://www.hgea.org/requestballot for instructions on how to request a ballot. Requests for ballots must be received by 12:30 p.m. on Oct. 20 (no later than four hours before the close of electronic voting).
Questions?
Please contact the Member Service Center by calling 808-543-0000 or emailing service@hgea.org.