STAND. COM. REP. NO. 2717

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2556

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2556 entitled:

 

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE ANNUAL REQUIRED CONTRIBUTION FOR THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to appropriate general funds for the annual required contribution to the Hawaii employer-union health benefits trust fund.

 

     Your Committee received written comments in support of this measure from the Department of Budget and Finance.

 

     Your Committee received written comments on this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

 

     Your Committee finds that section 11 of Act 268, Session Laws of Hawaii 2013, requires the State, as the public employer, to make escalating annual required contributions in fiscal years 2014-2015 to 2018-2019 to reduce the Hawaii Employer-Union Health Benefits Trust Fund's unfunded actuarial accrued liability.  Your Committee further finds that this measure provides a vehicle to appropriate funds for the annual required contribution for the 2016-2017 fiscal year, which is established as at least sixty per cent of the annual required contributions or $744,000,000.  Your Committee further finds that a contribution in excess or the minimum amount will further help to reduce the total actuarial accrued liability.

 

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2556, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2556, S.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair