HOUSE OF REPRESENTATIVES	H.B. NO.	1182
TWENTY-SEVENTH LEGISLATURE, 2013
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.  The legislature recognizes that the timing between the receipt of the bill for additional pension benefit contributions due to non-base pay increases and the remittance schedule given to public employers who must pay the costs associated with their employees who have substantial non-base pay increases is presenting a significant budgeting challenge for these public employers.  Accordingly, the legislature believes that amending the law to enable these costs to be made known to the public employers well in advance of their budgeting cycles will assist them in planning ahead for these costs.

     SECTION 2.  Section 88-100, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  The additional contributions required by this section shall be billed to the employer by January 1 of the fiscal year following the fiscal year in which the employee or former employee retired, and shall be payable in a lump sum in the second fiscal year following the fiscal year in which the employee or former employee retired; provided that, if the additional contributions required for the employees or former employees who retire in a fiscal year are greater than ten per cent of the employer's contributions (excluding the additional contributions) to the pension accumulation fund for that fiscal year, the employer may pay the additional contributions over a period of three fiscal years in installments equal to no less than one-third of the original amount of the required additional contributions, plus interest on the unpaid balance, commencing on the first day of the second fiscal year following the retirement of the employees or former employees, at an annual rate equal to the investment yield rate assumption for actuarial valuations of the system."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on June 30, 2013.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Employees' Retirement System; Payment by Employers of Costs Associated with Significant Non-base Pay Increases

 

Description:

Specifies the date by which an employer shall be billed for costs associated with significant non-base pay increases.  Delays payment by 1 year.

 

 

 

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