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Hawaii Supreme Court Rules Public Employee Health Benefits Protected by Constitution

November 07, 2016

The Hawaii Supreme Court ruled late last month that the State Constitution protects public employees' health benefits promised at the time of employment plus any promised during employment. By law, the State cannot diminish or impair benefits.
This ruling was the result of a class action lawsuit filed in 2006 on behalf of retirees who had benefits reduced.
Because of this Supreme Court decision, both sides will go back to court to determine how much retiree benefits declined each year. Eventually there is expected to be a payout for those affected, although currently the timeline is unknown.
We will continue to gather information on this important issue and keep you informed through News Alerts and The Public Employee.

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