Report Title:

Public Employee Benefits

 

Description:

Requires the Employees' Retirement System to pay for retirant health benefits if fully funded and if the reimbursement will not reduce the ERS' earnings below the investment yield rate for the fiscal year in which the reimbursement is sought.

 

THE SENATE

S.B. NO.

1640

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC EMPLOYEE BENEFITS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 87, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§87-   Reimbursement for retirant health benefits by the employees' retirement system. The public employees health fund may obtain reimbursement from the employees' retirement system for costs incurred by the health fund in providing health benefits for retirants if the fiscal requirements of section 88-        are met in the fiscal year for which the health fund is seeking reimbursement."

SECTION 2. Chapter 88, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§88- Reimbursement for retirant health benefits to the public employees health fund. The employees' retirement system, upon the request of the public employees health fund, shall reimburse the public employees health fund for costs incurred by the public employees health fund in providing health benefits to retirants; provided that the following requirements are met:

(1) The employees' retirement system is fully funded in the fiscal year preceding the request by the public employees health fund for reimbursement;

(2) The requested reimbursement does not create any unfunded liability for the employees' retirement system;

(3) The moneys needed to reimburse the public employees health fund to cover the cost of providing health benefits to retirants shall only be drawn from the employees' retirement system's investment earnings that are in excess of the investment yield rate established under section 88-122(b) for the fiscal year in which the reimbursement is requested; and

(4) The moneys derived under paragraph (3) are sufficient to fully reimburse the public employees health fund for all costs incurred in providing health benefits for retirants."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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