THE SENATE

S.B. NO.

1262

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO EMPLOYEES' RETIREMENT SYSTEM BENEFIT ENHANCEMENT MORATORIUM.

 

 

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

 


     SECTION 1.  The purpose of this Act is to assist the employees' retirement system in improving and protecting its funded status by placing a moratorium on the enhancement of benefits until the system's funded ratio is at least eighty percent.  If future legislatures grant additional benefits (which include earlier retirements), the time it will take the employees' retirement system to become fully funded will be lengthened, perhaps significantly, depending upon the level of enhancements granted.

     SECTION 2.  Chapter 88, Hawaii Revised Statutes, is amended by adding to part II a new section to be appropriately designated and to read as follows:

     "§88-    Moratorium on benefit enhancements.  There shall be no benefit enhancements under this chapter for any group of members, including any reduction of retirement age, until such time as the actuarial value of the system's assets is at least eighty per cent of the system's actuarial accrued liability."

     SECTION 3.  New statutory material is underscored.

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

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

Employees' Retirement System; Moratorium on Benefit Enhancements

 

Description:

Institutes a moratorium on the enhancement of Employees' Retirement System benefits until the system's funded ratio is at least eighty percent.

 

 

 

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