HOUSE OF REPRESENTATIVES

H.B. NO.

32

TWENTY-NINTH LEGISLATURE, 2017

 

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.  Section 88-90.5, Hawaii Revised Statutes, is amended to read as follows:

     "§88-90.5  Actuarial assumptions.  (a)  Notwithstanding any provision in this chapter to the contrary, the board may approve the effect of the post retirement allowance under section 88-90, or of any other mandatory fixed scheduled increase in the benefits payable under part II, VII, or VIII, as an actuarial assumption for the purpose of determining the value of the options available under sections 88-83, 88-283, and 88-333.

     (b)  Subject to the recommendation of the actuary appointed under section 88-29, the board may adopt, by motion at any duly noticed meeting of the board, actuarial tables, factors, and assumptions for the purposes of parts II, VII, and VIII.  The tables, factors, and assumptions that are used to compute benefits shall be in writing and certified by the executive director.

     (c)  The investment yield rate assumption approved by the board under subsection (b) may not be used to compute benefits until:

     (1)  The board submits a resolution to the legislature that specifies the assumption and the rationale used for that assumption; and

     (2)  The legislature approves of that assumption through the adoption of a concurrent resolution.

An investment yield rate established pursuant to this subsection shall remain in effect for at least three years from the date of legislative approval pursuant to paragraph (2)."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

ERS; Investment Yield Rate Assumption; Legislature

 

Description:

Requires the investment yield rate assumption approved by the Board of Trustees of the ERS to be further approved by the legislature prior to its use in computing benefits.

 

 

 

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