Bill Text: HI HB2309 | 2016 | Regular Session | Introduced

Hawaii House Bill 2309 (Prior Session Legislation)

Introduced

Bill Title: Hawaii Employer-Union Health Benefits Trust Fund

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-02-09 - Passed Second Reading and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Tupola excused (1). [HB2309 Detail]

Download: Hawaii-2016-HB2309-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2309
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INVESTMENTS OF THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

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

SECTION 1. The legislature finds that moneys held in trust by the Hawaii employer-union health benefits trust fund for other post-employment benefits will continue to grow as both state and county employers make contributions to the fund to prefund their OPEB obligations as employers. In light of what will be ongoing and large increases in trust fund moneys, the legislature finds that allowing the fund to invest in asset classes mirroring those of the employees' retirement system will allow the fund to best manage these trust fund moneys in order to maximize returns on investments.

The purposes of this Act are to repeal certain restrictions on the fund to invest in certain asset classes, thereby allowing the fund to invest in asset classes mirroring those of the employees' retirement system and to make housekeeping amendments to sections 87A-34 and 87A-36, Hawaii Revised Statutes.

SECTION 2. Section 87A-24, Hawaii Revised Statutes, is amended to read as follows:

"§87A-24 Other powers. In addition to the power to administer the fund, the board may:

(1) Collect, receive, deposit, and withdraw money on behalf of the fund;

(2) Invest moneys in the same manner specified in section [~~88-119(1)(A), (1)(B), (1)(C), (2), (3), (4), (5), (6), and (7);~~] 88-119;

(3) Hold, purchase, sell, assign, transfer, or dispose of any securities or other investments of the fund, as well as the proceeds of those investments and any money belonging to the fund;

(4) Appoint, and at pleasure dismiss, an administrator and other fund staff. The administrator and staff shall be exempt from chapter 76 and shall serve under and at the pleasure of the board;

(5) Make payments of periodic charges and pay for reasonable expenses incurred in carrying out the purposes of the fund;

(6) Contract for the performance of financial audits of the fund and claims audits of its insurance carriers;

(7) Retain auditors, actuaries, investment firms and managers, benefit plan consultants, or other professional advisors to carry out the purposes of this chapter, including the retaining of an actuary to determine the annual required public employer contribution for the separate trust fund established under section 87A-42;

(8) Establish health benefits plan and long-term care benefits plan rates that include administrative and other expenses necessary to effectuate the purposes of the fund; and

(9) Require any department, agency, or employee of the State or counties to furnish information to the board to carry out the purposes of this chapter."

SECTION 3. Section 87A-34, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) This section shall apply to state and county contributions to the fund for employees specified in paragraph [~~(1)(E)~~] (1)(D) of the definition of "employee" in section 87A-1 who:

(1) Were hired on or before June 30, 1996; and

(2) Retired after June 30, 1984, with fewer than ten years of credited service, excluding sick leave."

SECTION 4. Section 87A-36, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(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 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 one-hundred 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, as defined in paragraph [~~(1)(E)~~] (1)(D) of the definition of "employee" in section 87A-1.

If both husband and wife 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 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Hawaii Employer-Union Health Benefits Trust Fund

Description:

Repeals certain restrictions on investments that can be made by the Hawaii Employer-Union Health Benefits Trust Fund and make housekeeping amendments.

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