Unveiling the Perks of State of Hawaii Employee Benefits

Unveil the perks of working for the State of Hawaii. Employees can expect competitive compensation and generous leave policies.

Employees can save money with discounted rates on car insurance and other coverage. They can also utilize the government’s flexible work arrangements and professional development programs.

All employees can participate in the Employee Retirement System (ERS) defined-benefit retirement plan and the Thrift Savings Plan. They can also enjoy unlimited travel on Hawaiian Airlines for themselves and family members.

Health Care

The State of Hawaii offers various healthcare benefits to support your overall well-being. These include medical/Rx drug, dental, and vision care plans, life insurance, and short-term disability insurance. Employees are also eligible to participate in the State’s Premium Conversion Plan (PCP), which allows participants to increase their take-home pay by contributing to their EUTF medical/Rx drug and dental plans on a pre-tax basis.

Hawaii’s Health Benefits Rate Regulation Act sets minimum employer-sponsored health insurance coverage standards. It requires that all employers offer healthcare plans that meet the criteria of the State’s “solvency” and “ability to pay” guidelines. The act applies to employers with at least one employee who works an average of 20 hours per week over four consecutive weeks.

In addition, Hawaii’s law excludes self-insured plans from federal ERISA preemption, which allows the State to set stricter guidelines than other states.

Dental Care

Providing dental care is essential for staying healthy for the State of Hawaii employee benefits. In addition, a great benefit program will help the company attract and retain high-quality staff members. In addition to salary, some of the most desirable perks are health insurance, retirement programs, and dental and vision coverage.

Employees can choose from HMSA (a licensed Blue Cross and Blue Shield Association) PPO or HMO plans, which are highly regarded in Hawaii. HMSA’s provider network includes more than 95 percent of the State’s doctors and hospitals and offers access to a nationwide network.

Small employers are required to offer all Essential Health Benefits through the ACA’s rules. Additionally, State of Hawaii employees can use the Personal Dental Benefit Account, or PDBA, to pay for their oral treatment at a discounted rate. The PDBA allows the employee to spend up to a hundred dollars monthly on dental treatment, with the amount rolling over at the end of the year.

Vision Care

The State of Hawaii offers employees a competitive compensation package, including comprehensive health care, life insurance, retirement programs, flexible spending accounts, and sick and vacation leave. Benefits vary by appointment type, collective bargaining agreement, and federal and State law.

While many employers have looked to hold down healthcare costs by implementing higher employee contributions, expanded cost-sharing provisions, and restrained benefit levels, Hawaii’s preexisting condition coverage (PHCA) law allows the State to prohibit these changes. Additionally, the State’s temporary disability benefits law requires that employers obtain and maintain a compliant plan from an approved insurance carrier or self-insure their coverage under specific guidelines.

In addition, IRS Information Letter 2021-0011 notes that PHCA’s exemption from ERISA preemption doesn’t exempt the State from the Affordable Care Act’s minimum coverage requirements and its rules on employer-sponsored plans. This leaves integrated HRAs and group coverage HRAs (ICHRAs) as good alternatives in Hawaii.

Life Insurance

Most employees in Hawaii live paycheck to paycheck, making it hard to save for the unexpected. That’s why we offer a range of voluntary employee benefits, paid through payroll deductions, to help them stretch their paycheck and cover unexpected expenses.

The ERS administers service retirement, disability, and survivor benefits for State and county government employees. Among other things, it collects retirement contributions, provides pre-retirement counseling services, conducts disability hearings and appeals, and processes monthly pension checks to members.

The State offers a medical, dental, and drug plan through the Hawaii Employer-Union Trust Fund (EUTF). Employees can increase their take-home pay by contributing to the EUTF pre-tax with the Premium Conversion Plan. Some also allows employees to take up to 26 weeks of partially paid leave each year to care for a spouse, child, reciprocal beneficiary, or parent with a severe health condition.

Flexible Spending Accounts

The State of Hawaii requires that all employees have established their legal residence in the State before the start date of their employment. In addition, all employees must meet specific hiring requirements that may vary by department. These include background checks, drug screening, and references.

Eligible State of Hawaii employees can take advantage of Island Flex. This flexible spending account allows them to pay for qualified out-of-pocket medical, prescription drug, dental, and vision expenses with TAX-FREE money. By redirecting “before tax” dollars from their paycheck to one or both accounts, employees can save up to 41% of the money they spend on qualifying expenses.

Employees can also enjoy the convenience of a State-sponsored employee credit union that offers savings and checking accounts, loans, financial counseling, traveler’s checks, and more. All State of Hawaii employees can purchase monthly bus passes through payroll deductions before Federal, State, and FICA taxes are computed.

Paid Time Off

Employees receive various paid time off benefits, including vacation, sick, and personal leave. These leave programs are based on your contract and union agreement terms.

All employees are eligible to participate in the State’s Employer-Union Health Benefit Trust Fund medical/Rx drug, dental, and vision care plans, with contributions made on a pre-tax basis through payroll deduction. Spouses, civil union partners, domestic partners, and dependent children are also eligible for coverage.

HMSA’s Employee Federal Credit Union offers a full range of services, including savings accounts, loans, financial counseling, notary service, and money orders. Payroll deductions make the voluntary program’s membership fee and other charges.

Hawaii’s Family and Medical Leave law complements the federal Family and Medical Leave Act (FMLA) by allowing employees to take up to four weeks of unpaid leave for reasons such as childbirth or caring for a seriously ill family member.