Bill Text: HI HCR146 | 2011 | Regular Session | Introduced


Bill Title: EUTF; Audit

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2011-04-19 - (S) Referred to JDL, WAM. [HCR146 Detail]

Download: Hawaii-2011-HCR146-Introduced.html

HOUSE OF REPRESENTATIVES

H.C.R. NO.

146

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING AN AUDIT OF THE EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

 

 

 


     WHEREAS, the Employer-Union Health Benefits Trust Fund ("EUTF") provides health benefits for state and county employees and their dependents; and

 

     WHEREAS, the contributions by the State and counties to the EUTF are substantial; and

 

     WHEREAS, for example, in the executive budget bill proposed by the Governor, the requested appropriation for general state employees is $174,600,000 in fiscal year 2011-2012 and $189,200,000 in fiscal year 2012-2013; and

 

     WHEREAS, for Department of Education employees, the requested appropriation is $234,300,000 in fiscal year 2011-2012 and $255,000,000 in fiscal year 2012-2013; and

 

     WHEREAS, for University of Hawaii employees, the requested appropriation is $77,400,000 in fiscal year 2011-2012 and $83,900,000 in fiscal year 2012-2013; and

 

     WHEREAS, the data display the magnitude of the benefits cost increases for the EUTF -- increases which may consume greater proportions of the State's operating budget in the future; and

 

     WHEREAS, moreover, according to the report, State of Hawaii Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009, the unfunded actuarial accrued liability of the EUTF for employees other than teachers was $7,100,000,000 on July 1, 2007; and

 

     WHEREAS, the unfunded actuarial accrued liability for teachers was $1,500,000,000 on the same date; and

 

     WHEREAS, clearly, the costs of and contributions to the EUTF must be moderated; and

 

     WHEREAS, the Legislature finds that an audit is a necessary step in the process to ascertain the most effective and fair approaches to achieve the moderation; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-Sixth Legislature, Regular Session of 2011, the Senate concurring, that the Auditor is requested to conduct a management audit of the Employer-Union Health Benefits Trust Fund; and

 

     BE IT FURTHER RESOLVED that the Auditor is also requested to review the Hawaii Employer-Union Health Benefits Trust Fund laws, rules, and policies to determine changes that may moderate contribution increases in a manner fair to public employers, public employees, and dependent-beneficiaries; and

 

     BE IT FURTHER RESOLVED that the Auditor is also requested to study the management structure of the Employer-Union Health Benefits Trust Fund, particularly the composition, voting method, and fiduciary duty of the Board of Trustees, and recommend changes for effectiveness, efficiency, or clarity; and

 

     BE IT FURTHER RESOLVED that the Auditor is also requested to recommend methods to gradually decrease the Employer-Union Health Benefits Trust Fund's unfunded actuarial accrued liability to comply with any General Accounting Standards Board standard; and

 

     BE IT FURTHER RESOLVED that the Auditor is requested not to address or recommend any change that would diminish the Employer-Union Health Benefits Trust Fund benefits of public employees who retired before July 1, 2011, except that the Auditor may recommend the elimination of any Employer-Union Health Benefits Trust Fund health benefits for retirees that are duplicative of Medicare; and

 

     BE IT FURTHER RESOLVED that the Auditor is requested to submit the audit, with recommended statutory changes, to the Legislature by the convening of the Regular Session of 2012; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and Chairperson of the Board of Trustees of the Employer-Union Health Benefits Trust Fund.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

EUTF; Audit

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