Bill Text: HI HB2016 | 2016 | Regular Session | Introduced
Bill Title: ERS; EUTF; Retiree Co-payments; Automatic Payments
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Vetoed) 2016-07-11 - Vetoed on 07/11/2016 - Returned from the Governor without approval (Gov. Msg. No. 1335). [HB2016 Detail]
Download: Hawaii-2016-HB2016-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2016 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to public employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 87A-30, Hawaii Revised Statutes, is amended to read as follows:
"§87A-30 Hawaii employer-union health benefits trust fund; establishment. (a) There is established outside the state treasury, a trust fund to be known as the "Hawaii Employer-Union Health Benefits Trust Fund". The fund shall consist of contributions, interest, income, dividends, refunds, rate credits, and other returns. It is hereby declared that any and all sums contributed or paid from any source to the fund created by this part, and all assets of the fund including any and all interest and earnings on the same, are and shall be held in trust by the board for the exclusive use and benefit of the employee-beneficiaries and dependent-beneficiaries and shall not be subject to appropriation for any other purpose whatsoever. The fund shall be under the control of the board and placed under the department of budget and finance for administrative purposes.
(b) The fund shall also consist of contributions received on behalf of retirees and beneficiaries from the board of trustees of the employees' retirement system that represent the difference between the monthly contributions by the State or county to the fund and the actual costs of health benefits plans, under sections 87A-33, 87A-33.5, 87A-34, 87A-35, and 87A-36. The amounts shall be based upon co-payment billing information submitted by the trustees to the board of trustees of the employees' retirement system."
SECTION 2. Section 88-6, Hawaii Revised Statutes, is amended to read as follows:
"§88-6 Payment of refunds [and]
retirement benefits[.], and Hawaii employer-union health benefits
trust fund contributions. (a) Notwithstanding any other provision of
this chapter:
(1) All retirees and beneficiaries of the state retirement system or county pension funds shall be paid semimonthly; provided that:
(A) All retirees and beneficiaries of the state retirement system who either retire or become beneficiaries after January 1, 2003, shall be paid monthly; and
(B) Effective July 1, 2011, all retirees and beneficiaries of the state retirement system shall be paid monthly; provided that this subparagraph shall not apply to any retiree or beneficiary who:
(i) Became a retiree or beneficiary prior to January 1, 2003;
(ii) Is eighty years of age or older on January 1, 2011; and
(iii) Receives $800 or less of pension benefits each month; and
(2) Any retiree or beneficiary of the state retirement system whose benefit commences after June 30, 2001, shall designate a financial institution account into which the system shall be authorized to deposit their retirement benefit; and effective April 1, 2011, all retirees and beneficiaries of the state retirement system shall designate a financial institution account into which the system shall be authorized to deposit their state retirement system benefits. This method of payment may be waived by the system.
(b) Any member, former employee, retirant, or beneficiary to whom accumulated contributions or a hypothetical account balance, as defined in section 88-311, is payable after June 30, 2008, shall, if the payment will be greater than $250 and the member, former employee, retirant, or beneficiary does not elect to rollover the payment into an eligible retirement plan, designate a financial institution account into which the system shall be authorized to deposit the payment. This method of payment may be waived by the system if another method is determined to be more appropriate.
(c) Contributions by retirees and beneficiaries to the Hawaii employer-union health benefits trust fund that represent the difference between the monthly contributions by the State or county to the Hawaii employer-union health benefits trust fund and the actual costs of health benefits plans, under sections 87A-33, 87A-33.5, 87A-34, 87A-35, and 87A-36, shall be paid by the board through the withholding of the payment amounts to which retirees and beneficiaries would otherwise be entitled to receive under this section. The amounts shall be based upon co-payment billing information received from the board of trustees of the employer-union health benefits trust fund. The board of trustees of the employees' retirement system shall submit an annual report to the legislature on the contribution amounts paid to the Hawaii employer-union health benefits trust fund under this section.
A retiree or beneficiary may make a one-time election to opt out of the requirement that the board withhold and pay over health benefits co-payment amounts to the board of trustees of the employer-union health benefits trust fund established under this subsection. Any opt out election made pursuant to this subsection shall be final and irrevocable."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2016.
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INTRODUCED BY: |
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Report Title:
ERS; EUTF; Retiree Co-payments
Description:
Requires public retiree contributions to the EUTF to be paid through withholdings of retirement benefit amounts from the ERS.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
