Bill Text: HI SB2687 | 2010 | Regular Session | Introduced
Bill Title: Employer-Union Health Benefits Trust Fund; Group Life Insurance Contributions
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-27 - (S) Referred to LBR, WAM. [SB2687 Detail]
Download: Hawaii-2010-SB2687-Introduced.html
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THE SENATE |
S.B. NO. |
2687 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 87A-17, Hawaii Revised Statutes, is amended to read as follows:
"[[]§87A-17[]]
Group life insurance benefits or group life insurance program. The board
may provide benefits under a group life insurance benefits program or group
life insurance program to employees[.]; provided that the program is
at no cost to the employers and the State and counties shall not make any
contributions for the program."
SECTION 2. Section 87A-31, Hawaii Revised Statutes, is amended to read as follows:
"§87A-31 Trust fund; purpose. (a) The fund shall be used to provide employee-beneficiaries and dependent-beneficiaries with health and other benefit plans, and to pay administrative and other expenses of the fund. All assets of the fund are and shall be dedicated to providing health and other benefits plans to the employee-beneficiaries and dependent-beneficiaries in accordance with the terms of those plans and to pay administrative and other expenses of the fund, and shall be used for no other purposes except for those set forth in this section.
(b) The fund, including any earnings on investments, and rate credits or reimbursements from any carrier or self-insured plan and any earning or interest derived therefrom, may be used to stabilize health and other benefit plan rates; provided that the approval of the governor and the legislature shall be necessary to fund administrative and other expenses necessary to effectuate these purposes.
(c) The fund may be used to provide group life
insurance benefits to employees [to the extent that contributions are
provided for group life insurance benefits in sections 87A-32 and 87A-37.];
provided that the group life insurance program shall be at no cost to the
employers and the State and counties shall make no contributions for the program.
(d) The fund may assist the State and the counties to implement and administer cafeteria plans authorized under Title 26 United States Code section 125, the Internal Revenue Code of 1986, as amended, and part II of chapter 78.
(e) At the discretion of the board, some or all of the fund may be used as a reserve against or to pay the fund's future costs of providing health and other benefits plans established under sections 87A-23 and 87A-37 and any other benefits plans the board establishes for retired employees and their beneficiaries. The board may create separate funds within the fund for this purpose. Each separate fund shall be subject to all of the provisions of this chapter."
SECTION 3. Section 87A-32, Hawaii Revised Statutes, is amended to read as follows:
"[[]§87A-32[]]
State and county contributions; active employees. (a) The State, through
the department of budget and finance, and the counties, through their
respective departments of finance, shall pay to the fund a monthly contribution
equal to the amount established under chapter 89C or specified in the
applicable public sector collective bargaining agreements, whichever is
appropriate, for each of their respective employee-beneficiaries and
employee-beneficiaries with dependent-beneficiaries, which shall be used toward
the payment of costs of a health benefits plan; provided that:
(1) The monthly contribution shall be a specified dollar amount;
(2) The monthly contribution shall not exceed the actual cost of a health benefits plan;
(3) If both husband and wife are employee-beneficiaries, the total contribution by the State or the county shall not exceed the monthly contribution for a family plan; and
(4) If the State or any of the counties establish cafeteria plans in accordance with Title 26, United States Code section 125, the Internal Revenue Code of 1986, as amended, and part II of chapter 78, the monthly contribution for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan, and the payments made by the State or counties shall include their respective contributions to the fund and their employee-beneficiary's share of the cost of the employee-beneficiary's health benefits plan.
[(b) The State, through the department of
budget and finance, and the counties, through their respective departments of
finance, shall pay to the fund a monthly contribution equal to the amount
established under chapter 89C or specified in the applicable public sector
collective bargaining agreement, whichever is applicable, for each of their
respective employees, to be used toward the payment of group life insurance
benefits for each employee.]"
SECTION 4. Section 87A-37, Hawaii Revised Statutes, is amended to read as follows:
"[[]§87A-37[]]
[Group] Employee contributions; group life insurance
benefits plans [for retired employees; contributions].
[(a) The State, through the department of budget and finance, and the
counties, through their respective departments of finance, shall pay to the
fund a base monthly contribution as set forth in subsection (b) for each
retired employee enrolled in the fund's group life insurance benefits plan
under section 87A-34, 87A-35, and 87A-36.
(b) Effective July 1, 2003, there is
established a base monthly contribution of $4.16 for each retired employee
enrolled in a group life insurance plan; provided that the monthly contribution
shall not exceed the actual cost of the group life insurance benefits plan.
The base composite monthly contribution shall be adjusted annually beginning
July 1, 2004. The adjusted base composite monthly contribution for each new
plan year shall be calculated by increasing or decreasing the base composite
monthly contribution in effect through the end of the previous plan year by the
percentage increase or decrease in the medicare part B premium rate for those
years. The percentage shall be calculated by dividing the medicare part B
premium rate in effect at the beginning of the new plan year by the rate in
effect through the end of the previous plan year.
As used in this subsection, "medicare
part B premium rate" means the rate published in the Federal Register each
year on November 1 or on the business day closest to November 1 of each year
after the medicare part B premium rate has been established by the Secretary of
Health and Human Services and approved by the United States Congress.] During
the period the group life insurance benefits plans are in effect, the employee,
if allowed by law, shall authorize the employee's contribution to be withheld
and transmitted to the fund monthly by the comptroller, employees' retirement
system, or finance officer who disburses the employee's compensation, pension,
or retirement pay. If an employee-beneficiary's monthly contribution to the
fund is not withheld and transmitted to the fund, the employee shall pay the
monthly contribution directly to the board's designated carrier or third-party
administrator as specified by the board."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2010.
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INTRODUCED BY: |
_____________________________ |
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By Request |
Report Title:
Employer-Union Health Benefits Trust Fund; Group Life Insurance Contributions
Description:
Suspends employer contributions for active and retiree life insurance premiums effective July 1, 2010.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
