HOUSE OF REPRESENTATIVES

H.B. NO.

974

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to State employees.

 

 

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

 


     SECTION 1.  The legislature finds that health benefits for all retirees from public service with the State are paid out of the state general fund.  The legislature further finds that this places an unfair burden on the general fund, as approximately half of all state employees' positions are funded out of special funds.  The legislature finds that it is appropriate to assess a surcharge for each state employee position that is funded by a special fund to offset retirement expenses that must be paid for from general funds.

     The purpose of this Act is to require the director of finance to assess each special fund in order to reimburse the general fund for the cost of providing health benefits to those retirees whose jobs as active employees were funded by special funds.

     SECTION 2.  Chapter 36, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§36-     Special fund retirement surcharge.  (a)  Any law to the contrary notwithstanding, beginning July 1, 2011, and each year thereafter, the director of finance shall deduct, for the purpose of defraying retirement health benefits for state employees whose job positions are funded by special funds, an amount from each special fund corresponding to each state employee whose job position is funded by that special fund.

     (b)  Deductions shall be transferred to the general fund of the State, and they shall become general realizations of the State.

     (c)  All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director of finance in effecting these transfers.

     (d)  The director of finance shall adopt rules, pursuant to chapter 91, for the purpose of suspending or limiting the deduction from any special fund, including establishing amounts to be deducted each year."

     SECTION 3.  After July 1, 2011, the director of finance may make a one-time assessment from each special fund to execute the purpose of this Act for employees whose job positions were funded by that special fund but who are no longer serving in those positions.  The assessment shall apply retroactively for a period of no longer than two years.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

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Report Title:

Special Funds; Retirees; Health Benefits

 

Description:

Directs the director of finance to make an annual transfer from each special fund into the general fund to defray the cost of health benefits for retirees whose job positions were funded by special funds.

 

 

 

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