Bill Text: HI HB447 | 2022 | Regular Session | Introduced

Hawaii House Bill 447 (Prior Session Legislation)

Introduced

Bill Title: Relating To Employee-union Health Benefits.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [HB447 Detail]

Download: Hawaii-2022-HB447-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	447
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EMPLOYEE-UNION HEALTH BENEFITS.

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

SECTION 1. The legislature ﬁnds the State's growing unfunded liabilities of $88,000,000,000 threatens the State's credit rating and long-term ﬁnancial sustainability. Of the $88,000,000,000 in unfunded liabilities, the employer-union health beneﬁts trust fund (EUTF) accounts for $12,200,000,000.

The legislature further ﬁnds that governor David Ige indeﬁnitely suspended payment toward paying down the EUTF's unfunded liabilities to address critical budget shortfalls from the economic impacts of the global COVID-19 pandemic. In response to the governor's suspension, Moody's Investors Services downgraded the State's credit rating from Aa1 to Aa2.

While understanding the suspension is temporary, the State must further commit its efforts to pursuing responsible fiscal policies to relieve future generations of the ﬁnancial burden from the State's unfunded liabilities.

Accordingly, the purpose of this Act is to reduce the growth of actuarial accrued liability by limiting employer contributions to premiums for a lower beneﬁt plan for new hires after June 30, 2021.

SECTION 2. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§87A- State and county contributions; employees hired after June 30, 2021, and retired. (a) This section shall apply to state and county contributions to the fund for employees hired after June 30, 2021, and who retired, except that this section shall not apply to the following employees, for whom state and county contributions shall be made as provided by section 87A-36:

(1) An employee hired after June 30, 2001, and prior to July 1, 2021, who transfers employment after June 30, 2021, and who cumulatively accrues at least ten years of credited service; and

(2) An employee hired after June 30, 2001, and prior to July 1, 2021, who has at least ten years of credited service prior to a break in service.

(b) For purposes of this section:

"Break in service" means to leave state or county employment for more than ninety calendar days before returning to state or county employment.

"Transfer" means to leave state or county employment and return to state or county employment within ninety calendar days.

(c) The State, through the department of budget and ﬁnance, and the counties, through their respective departments of ﬁnance, shall pay to the fund:

(1) For retired employees based on the self plan with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b);

(2) For retired employees based on the self plan with at least fifteen years but fewer than twenty-five years of service, a monthly contribution equal to seventy-five per cent of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b);

(3) For retired employees based on the self plan with twenty-five or more years of service, a monthly contribution equal to ninety per cent of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b); and

(4) One-half of the monthly contributions for the employee-beneficiary or employee-beneﬁciary with dependent-beneﬁciaries upon the death of the employee; provided that for purposes of this paragraph, "employee" means those persons who fall within the definition of "employee" in paragraph (1)(D) of section 87A-1.

If both spouses are employee-beneﬁciaries, the total contribution by the State or county shall not exceed the monthly contribution for two supplemental medicare self or non-medicare self plans, as appropriate."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2021.

INTRODUCED BY:

_____________________________

Report Title:

EUTF; Health Benefits; State and County Contributions

Description:

Establishes State and county contributions to the Hawaii employer-union health benefits trust fund for employees hired after June 30, 2021, with certain exclusions.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.