STAND. COM. REP. NO.264

Honolulu, Hawaii

, 2003

RE: S.B. No. 762

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 762 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to remove the cap on the employer's monthly contribution for health benefits plans for retirees.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, the Retirees Unit of the Hawaii Government Employees Association, the United Public Workers of Hawaii, the Hawaii State Teachers Association, and the Hawaii State Retired Teachers Association.

Your Committee finds that although under existing law, the employer's monthly contribution for health benefits plans for retirees is scheduled to be adjusted annually, beginning July 1, 2004, the cost for health benefits has already increased, if not exceeded the amounts specified in section 87A-33(b), Hawaii Revised Statutes.

Your Committee determines that in order to avoid the imposition of a financial burden upon the retirees and to fulfill an obligation to the retirees in recognition of their years of dedicated public service, timely action must be taken to ensure that retirees maintain similar health benefits, to that which were provided to them prior to the establishment of the Employer-Union Health Benefits Trust Fund.

Accordingly, your Committee has amended the measure as follows:

(1) By requiring the monthly employer contribution to be adjusted annually, beginning July 1, 2002; and

(2) By calculating the percentage increase or decrease in medicare part B premium rate by dividing the medicare part B premium in effect at the beginning of the new plan year by the rate in effect at the beginning of the previous plan year.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 762, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 762, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

BRIAN KANNO, Chair