The hybrid plan will let workers sock away more money for retirement at no additional cost to the government. It is open to all employees who are still working for the government on Feb. 28, 2006, and new employees hired on or after July 1, 2006.

Before Act 179, public employees were in either a contributory or noncontributory retirement plan.

In the contributory plan, both government and workers put money into the plan. But the plan was closed to most employees and a noncontributory plan was created because members wanted to invest in higher interest-rate alternatives elsewhere. The government created the noncontributory plan in 1984 and new workers were enrolled into that program.

But employees pushed for a plan in which they could contribute since the payout is larger if they make deposits as well.

The hybrid was created to bridge the two types of plans. The employee contributes into the hybrid plan, along with the government. The payout will be higher than the noncontributory plan but can be equal to or less than the now closed contributory plan.

For instance, a 62-year-old worker with 20 years of service making an average of $3,000 a month based on his three highest-earning years will get $1,200 a month for life under the hybrid plan. Under the noncontributory plan, he would get $750. With the old contributory plan, the payout would also be $1,200.

If an employee with two decades of service wishes to retire early at 55 and if the average of her three highest-earning years amounted to $3,000 monthly, she would get $780 under the hybrid plan, $435 under the noncontributory plan, and $1,200 under the contributory plan.

Modesto Mendoza, 50, a Honolulu scale operator, is eager to enroll in the hybrid plan.

Hired in 1982, he could have chosen the contributory or noncontributory plan. At the time, the noncontributory looked better because he didn't need to put money into it. After realizing the payout was higher for the contributory plan, Mendoza wished he had chosen it instead.

"I think I made a mistake to switch to the noncontributory plan," said the public employee.

Scale operator Modesto Mendoza directs an incoming truck at the Ke'ehi Refuse Transfer Station. He says he regrets choosing a noncontributory plan in 1982 and is eager to enroll in the hybrid plan.

"It will be better for us because of the way they calculate it. The retirement pension will be higher," he said. "But it depends on how much we put in."

It is still unclear whether existing monies parked in the non-contributory plan can be converted into the hybrid plan, pension fund officials said. The pension fund will be requesting a private letter ruling from the Internal Revenue Service to straighten that out.

Under the hybrid plan, most employees and teachers contribute 6 percent of their pay for their pension while sewer workers, water safety officers and emergency medical technicians put in 9.75 percent.

In comparison, the contributory plan lets most employees set aside 7.8 percent of their pay. Police officers, firefighters and certain investigators can put in 12.2 percent.

Employees cannot put any money into the noncontributory plan.

Most workers in the hybrid plan can get full benefits starting at age 62 with five years of service or at age 55 with 30 years of service. The noncontributory plan vests most workers at age 62 with 10 years of service or at age 55 with 30 years of service. Under the contributory plan, vesting varies from age 55 with five years of service or any age with either 10 or 25 years of service, depending on occupation.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.