Report Title:

Employees' Retirement System; No Benefit Enhancements

 

Description:

Deletes the sunset date of 1/2/11 on the prohibition on approving employees' retirement system benefit enhancements while an unfunded accrued liability exists.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1738

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

 

 

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

 


     SECTION 1.  The purpose of this Act is to repeal the sunset date on the prohibition on approving benefit enhancements while an unfunded accrued liability exists.

     SECTION 2.  Section 88-122, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  Commencing with fiscal year 2005-2006 and each subsequent fiscal year, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on fifteen and three-fourths per cent of the member's compensation for police officers, firefighters, and corrections officers and thirteen and three-fourths per cent of the member's compensation for all other employees.  Commencing with fiscal year 2008-2009 and each subsequent fiscal year, the employer contributions for normal cost and accrued liability for each of the two groups of employees in subsection (a) shall be based on nineteen and seven-tenths per cent of the member's compensation for police officers, firefighters, and corrections officers and fifteen per cent of the member's compensation for all other employees.  The contribution rates shall amortize the total unfunded accrued liability of the entire plan over a period not to exceed thirty years.

     Effective January 2, 2008 [until January 2, 2011], there shall be no benefit enhancements under this chapter for any group of members, including any reduction of retirement age, when there is an unfunded accrued liability.

     The contribution rates shall be subject to adjustment:

     (1)  If the actual period required to amortize the unfunded accrued liability exceeds thirty years;

     (2)  If there is no unfunded accrued liability; or

     (3)  Based on the actuarial investigation conducted in accordance with section 88-105."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.

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

 

INTRODUCED BY:

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