HOUSE OF REPRESENTATIVES

H.B. NO.

2536

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

 

 

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

 


     SECTION 1.  Section 87A-34, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§87A-34[]]  State and county contributions; retired employees with fewer than ten years of service.  (a)  This section shall apply to state and county contributions to the fund for employees specified in paragraph (1)(E) of the definition of "employee" in section 87A-1 who:

     (1)  Were hired on or before June 30, 1996; and

     (2)  Retired after June 30, 1984, with fewer than ten years of credited service, excluding sick leave.

     (b)  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to one-half of the lesser of (1) the base monthly contribution set forth under section 87A-33[(b)] for retired employees enrolled in medicare or non-medicare health benefits plans[.] or (2) the actual cost of the plan or plans the retired employee is enrolled in.  If both husband and wife are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for supplemental medicare family or non‑medicare family plan, as appropriate."

     SECTION 2.  Section 87A-35, Hawaii Revised Statutes, is amended to read as follows:

     "§87A-35  State and county contributions; employees hired after June 30, 1996, but before July 1, 2001, and retired with fewer than twenty-five years of service.  (a)  This section shall apply to state and county contributions to the fund for employees who were hired after June 30, 1996, but before July 1, 2001, and who retire with fewer than twenty-five years of credited service, excluding sick leave; provided that this section shall not apply to the following employees, for whom state and county contributions shall be made as provided by section 87A-33:

     (1)  An employee hired prior to July 1, 1996, who transfers employment after June 30, 1996, and who cumulatively accrues at least ten years of credited service; and

     (2)  An employee hired prior to July 1, 1996, who has at least ten years of credited service prior to a break in service.

     For the purposes of this section:

     "Break in service" means to leave state or county employment for more than ninety calendar days before returning to state or county employment.

     "Transfer" means to leave state or county employment and return to state or county employment within ninety calendar days.

     (b)  For purposes of this section, if an employee leaves state or county employment and returns to state or county employment after June 30, 1996, upon retirement, the employee's years of service shall be computed in the same manner as set forth in chapter 88.

     (c)  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund:

     (1)  For retired employees enrolled in medicare or non-medicare health benefit plans with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the lesser of (A) the base monthly contribution set forth under section 87A-33[(b);] or (B) the actual cost of the plan or plans the retired employee is enrolled in; and

     (2)  For retired employees enrolled in medicare or non-medicare health benefit plans with at least fifteen but fewer than twenty-five years of service, a monthly contribution of seventy-five per cent of the lesser of (A) the base monthly contribution set forth under section 87A-33[(b).] or (B) the actual cost of the plan or plans the retired employee is enrolled in.

If both husband and wife are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for a supplemental medicare family or non-medicare family plan, as appropriate."

     SECTION 3.  Section 87A-36, Hawaii Revised Statutes, is amended to read as follows:

     "§87A-36  State and county contributions; employees hired after June 30, 2001, and retired.  (a)  This section shall apply to state and county contributions to the fund for employees hired after June 30, 2001, and who retired, except that this section shall not apply to the following employees, for whom state and county contributions shall be made as provided by section 87A-35:

     (1)  An employee hired after June 30, 1996, and prior to July 1, 2001, who transfers employment after June 30, 2001, and who cumulatively accrues at least ten years of credited service; and

     (2)  An employee hired after June 30, 1996, and prior to July 1, 2001, who has at least ten years of credited service prior to a break in service.

     For purposes of this section:

     "Break in service" means to leave state or county employment for more than ninety calendar days before returning to state or county employment.

     "Transfer" means to leave state or county employment and return to state or county employment within ninety calendar days.

     (b)  For purposes of this section, if an employee leaves state or county employment and returns to state or county employment after July 1, 2001, upon retirement, the employee's years of service shall be computed in the same manner as set forth in chapter 88.

     (c)  The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund:

     (1)  For retired employees based on the self plan with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the lesser of (A) the base medicare or non‑medicare monthly contribution set forth under section 87A‑33[(b);] or (B) the actual cost of the plan or plans the retired employee is enrolled in;

     (2)  For retired employees based on the self plan with at least fifteen but fewer than twenty-five years of service, a monthly contribution equal to seventy-five per cent of the lesser of (A) the base medicare or non-medicare monthly contribution set forth under section 87A‑33[(b);] or (B) the actual cost of the plan or plans the retired employee is enrolled in;

     (3)  For retired employees based on the self plan with twenty-five or more years of service, a monthly contribution equal to one-hundred per cent of the lesser of (A) the base medicare or non‑medicare monthly contribution set forth under section 87A‑33[(b);] or (B) the actual cost of the plan or plans the retired employee is enrolled in; and

     (4)  One-half of the monthly contributions for the employee-beneficiary or employee-beneficiary with dependent-beneficiaries upon the death of the employee, as defined in paragraph (1)(E) of the definition of "employee" in section 87A‑1.

If both husband and wife are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for two supplemental medicare self or non-medicare self plans, as appropriate."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:

_____________________________

 

 

By Request


 


 

Report Title:

Employer-Union Health Benefits Trust Fund; Base Monthly Contribution

 

Description:

Requires employer contributions for retiree health benefit plans to be limited to either a percentage of the actual health plan premium or a percentage of the base monthly contribution, whichever is less.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.