Bill Text: HI HB1462 | 2013 | Regular Session | Introduced

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Bill Title: Unfunded Liabilities; Task Force

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-01-28 - Referred to LAB, FIN, referral sheet 7 [HB1462 Detail]

Download: Hawaii-2013-HB1462-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	1462
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to unfunded liabilities.

 

 

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

 

     SECTION 1.  The legislature finds that the State has been at best unprepared, and at worst negligent, with regard to its responsibility to ensure adequate funding for the promised pensions and other post-employment benefits for governmental employees.  The department of budget and finance reports that the employees' retirement system's unfunded actuarial accrued liability for pensions is $8,200,000,000.  Further, the Hawaii employer-union health benefits trust fund's unfunded actuarially accrued liability is $13,500,000,000.

     During testimony on the governor's executive biennium budget, the director of finance placed particular emphasis on the latter unfunded liability, stating that the liability, "if left unaddressed, will continue to grow" and "will negatively impact" Hawaii's "future ability to fund necessary, ongoing State programs and services, as well as the State's bond ratings."

     The purpose of this Act, therefore, is to create a task force that will study the unfunded actuarial accrued liabilities monitored by the administrations of the Hawaii employer-union health benefits trust fund under chapter 87A and the employees' retirement system under chapter 88.

     SECTION 2.  (a)  There shall be established a task force that shall, at a minimum:

     (1)  Study the unfunded actuarial accrued liabilities monitored by the administrations of the Hawaii employer-union health benefits trust fund under chapter 87A and the employees' retirement system under chapter 88;

     (2)  Determine the best means for funding the respective liabilities;

     (3)  Make recommendations for relevant legislation, such as legislation that:

          (A)  Addresses funding for the respective liabilities; and

          (B)  Requires the consideration of the fiscal impact of new governmental positions on the respective liabilities;

     (4)  Solicit policy recommendations from other states; and

     (5)  Make recommendations for an educational campaign that will help the average person better understand the unfunded actuarial accrued liabilities.

     (b)  The members of the task force shall include:

     (1)  The chair of the senate committee on ways and means, to serve as co-chair;

     (2)  The chair of the house committee on finance, to serve as co-chair;

     (3)  One member of the senate majority caucus, selected by the president of the senate;

     (4)  One member of the senate minority caucus, selected by the president of the senate;

     (5)  One member of the house majority caucus, selected by the speaker of the house of representatives;

     (6)  One member of the house minority caucus, selected by the speaker of the house of representatives;

     (7)  The director of finance, or the director's designee;

     (8)  The administrator of the Hawaii employer-union health benefits trust fund, or that administrator's designee;

     (9)  The administrator of the employees' retirement system, or that administrator's designee;

    (10)  An economist employed by the University of Hawaii;

    (11)  Another economist, employed by any public or private institution of higher learning;

    (12)  An attorney familiar with Hawaii employment or labor law, who has generally represented the interests of employers during the course of his or her career; and

    (13)  An attorney familiar with Hawaii employment or labor law, who has generally represented the interests of employees during the course of his or her career.

     (c)  The task force shall meet a minimum of five times before January 1, 2014. 

     (d)  The task force shall report its findings and recommendations, including proposed legislation, if any, to the legislature no later than thirty days prior to the convening of the regular session of 2014. 

     (e)  The task force shall cease to exist on June 30, 2014.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Unfunded Liabilities; Task Force

 

Description:

Creates a task force that will study the unfunded actuarial accrued liabilities monitored by the administrations of the Hawaii employer-union health benefits trust fund under chapter 87A and the employees' retirement system under chapter 88.

 

 

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