REPORT TITLE:
No ERS Moneys for Pay Raise


DESCRIPTION:
Repeals use of excess ERS investment earnings to fund retroactive
one-time pay raises for HGEA and UPW contracts expiring 6/30/99.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2468
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO GOVERNMENT OPERATIONS.



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

 1      SECTION 1.  Section 88-107, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "88-107  Interest.  [(a)] The board of trustees shall
 
 4 annually allocate the interest and other earnings of the system
 
 5 to the funds of the system, as follows:
 
 6      (1)  The annuity savings fund shall be credited with the
 
 7           amount of regular interest credited to members'
 
 8           accounts;
 
 9      (2)  The expense fund shall be credited with such sums as
 
10           provided in section 88-116; and
 
11      (3)  The remaining investment earnings, if any, shall be
 
12           credited to the pension accumulation fund.
 
13      [(b)] Beginning with actual investment earnings in fiscal
 
14 year 1995 in excess of the investment yield rate, to address
 
15 outstanding unfunded pension obligations, ten per cent of such
 
16 excess earnings shall be deposited in the pension accumulation
 
17 fund; remaining excess earnings shall be applied to the amounts
 
18 to be contributed under section 88-123.  In fiscal year 1996,
 
19 twenty per cent of the actual investment earnings in excess of
 

 
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                                     S.B. NO.           2468
                                                        
                                                        

 
 1 the investment yield rate shall be deposited in the pension
 
 2 accumulation fund; remaining excess earnings shall be applied to
 
 3 the amount contributed under section 88-123.  [In fiscal years
 
 4 1997 and 1998, actuarial investment earnings in excess of a ten
 
 5 per cent actuarial investment yield rate shall be applied to the
 
 6 amount contributed under section 88-123.] Beginning in fiscal
 
 7 year [1999,] 1997, one hundred per cent of the investment
 
 8 earnings shall be deposited in the pension accumulation fund.
 
 9      [(c)  The application of actuarial investment earnings to
 
10 the amount contributed under section 88-123 for fiscal years 1997
 
11 and 1998 as provided in subsection (b) is a one-time only
 
12 provision and no law shall be enacted to again require the
 
13 employees' retirement system to apply actuarial investment
 
14 earnings to offset the amount contributed under section 88-123.]"
 
15      SECTION 2.  Section 89-9, Hawaii Revised Statutes, is
 
16 amended by amending subsection (a) to read as follows:
 
17      "(a)  The employer and the exclusive representative shall
 
18 meet at reasonable times, including meetings in advance of the
 
19 employer's budget-making process, and shall negotiate in good
 
20 faith with respect to wages, hours, the number of incremental and
 
21 longevity steps and movement between steps within the salary
 
22 range, the amounts of contributions by the State and respective
 

 
 
 
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                                     S.B. NO.           2468
                                                        
                                                        

 
 1 counties to the Hawaii public employees health fund to the extent
 
 2 allowed in subsection (e), and other terms and conditions of
 
 3 employment which are subject to negotiations under this chapter
 
 4 and which are to be embodied in a written agreement, or any
 
 5 question arising thereunder, but such obligation does not compel
 
 6 either party to agree to a proposal or make a concession[;
 
 7 provided that the parties may not negotiate with respect to cost
 
 8 items as defined by section 89-2 for the biennium 1999 to 2001,
 
 9 and the cost items of employees in bargaining units under section
 
10 89-6 in effect on June 30, 1999, shall remain in effect until
 
11 July 1, 2001]."
 
12      SECTION 3.  Act 100, Session Laws of Hawaii 1999, is
 
13 repealed.
 
14      SECTION 4.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 5.  This Act shall take effect upon its approval.
 
17 
 
18                           INTRODUCED BY:  _______________________