Bill Text: HI SB1031 | 2014 | Regular Session | Introduced
Bill Title: Employer-Union Health Benefits Trust Fund; Defined Contribution Benefit Program
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB1031 Detail]
Download: Hawaii-2014-SB1031-Introduced.html
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THE SENATE |
S.B. NO. |
1031 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND DEFINED CONTRIBUTION PLAN.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that cost of health insurance policy premiums has been increasing over time. Because future costs of health insurance policy premiums are difficult to predict, the legislature finds that changing the current structure of state and county employers paying a percentage of health insurance policy premiums for retired employee-beneficiaries of the Hawaii employer-union health benefits trust fund in favor of a defined contribution plan for such retired employee-beneficiaries is fiscally responsible and prudent.
The purpose of this Act is to provide for the establishment of a defined contribution plan for retired employee-beneficiaries of the Hawaii employer-union health benefits trust fund who were hired on or after July 1, 2013.
SECTION 2. Chapter 87A, Hawaii Revised Statutes, is amended by adding to part VI a new section to be appropriately designated and to read as follows:
"87A- Defined contribution plan. (a) Notwithstanding any law to the contrary, this section shall apply to employee-beneficiaries who were hired on or after July 1, 2013.
(b) All employee-beneficiaries hired on or after July 1, 2013, who retire with ten years of credited service, excluding sick leave, shall receive a defined contribution towards the payment of premiums for health benefit plans in the amount of $100 per month. For each year of credited service in excess of ten years, such employee-beneficiaries shall receive an additional defined contribution in the amount of $10 per month. The defined contributions described in this subsection shall be applied to health insurance policy premiums of health benefits plans offered by the fund and shall constitute the sole payment that state and county employers will make toward a retired employee-beneficiary's health insurance policy premiums.
(c) In the event that an employee-beneficiary chooses not to apply the defined contributions described in subsection (b), to health insurance policy premiums of health benefits plans offered by the fund, said defined contributions shall be paid to the employee-beneficiary directly from the fund.
(d) If the board establishes a separate trust fund for purposes of receiving employer contributions that will prefund other post-employment health and other benefit plan costs for retired employee-beneficiaries and their beneficiaries, as set forth in section 87A-42, the defined contributions described in subsections (b) and (c) shall be paid solely from such separate trust fund."
SECTION 3. Section 87A-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Defined contribution" means the predetermined monthly sum of money paid to a retired employee-beneficiary who was hired on or after July 1, 2013."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Employer-Union Health Benefits Trust Fund; Defined Contribution Benefit Program
Description:
Establishes a defined contribution plan for retiree health benefits that will be applied to employees hired on or after July 1, 2013.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
