Bill Text: HI SB927 | 2018 | Regular Session | Introduced
Bill Title: Relating To Employer Contributions To The Employees' Retirement System.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-17 - Re-Referred to LBR, WAM. [SB927 Detail]
Download: Hawaii-2018-SB927-Introduced.html
|
THE SENATE |
S.B. NO. |
927 |
|
TWENTY-NINTH LEGISLATURE, 2017 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO EMPLOYER CONTRIBUTIONS TO THE EMPLOYEES' RETIREMENT SYSTEM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to provide for increased rates for employer contributions to the employees' retirement system of the State of Hawaii.
The legislature finds that based on the five-year actuarial experience review performed as of June 30, 2016, by the system's actuary pursuant to section 88-105, Hawaii Revised Statutes, the actuary recommended changes to the actuarial assumptions used for the actuarial valuation of the system. The recommended changes were adopted by the system's board of trustees. Under the new assumptions, the period required to amortize the unfunded accrued liability of the system will increase from twenty-seven years to exceed thirty years.
The contributions the State and county agencies are required to make to the system to meet obligations for retirement benefits are based on a percentage of payroll. Section 88-122, Hawaii Revised Statutes, provides that the contribution rates are subject to adjustment if the period required to amortize the unfunded accrued liability of the system exceeds thirty years. To maintain the twenty-seven year funding period prior to the revaluation, and if no benefit changes are made, the actuary recommended an increase in the employer contribution rate to forty-two and one-half per cent for police officers, firefighters, and corrections officers, and to twenty-four and three-quarters per cent for all other employees.
SECTION 2. Section 88-122, Hawaii Revised Statutes, is amended by amending subsection (e) as follows:
"(e) Commencing with fiscal year 2005-2006 and each subsequent
fiscal year[,] until fiscal year 2007-2008, the employer
contributions for normal cost and accrued liability for each of the two groups
of employees in subsection (a) shall be based on fifteen and three-fourths per
cent of the member's compensation for police officers, firefighters, and
corrections officers and thirteen and three-fourths per cent of the member's
compensation for all other employees. Commencing with fiscal year 2008-2009
and each subsequent fiscal year until fiscal year 2011-2012, the employer
contributions for normal cost and accrued liability for each of the two groups
of employees in subsection (a) shall be based on nineteen and seven-tenths per
cent of the member's compensation for police officers, firefighters, and
corrections officers and fifteen per cent of the member's compensation for all
other employees. In fiscal year 2012-2013, the employer contributions for
normal cost and accrued liability for each of the two groups of employees in
subsection (a) shall be based on twenty-two per cent of the member's
compensation for police officers, firefighters, and corrections officers and
fifteen and one-half per cent of the member's compensation for all other
employees. In fiscal year 2013-2014, the employer contributions for normal
cost and accrued liability for each of the two groups of employees in
subsection (a) shall be based on twenty-three per cent of the member's
compensation for police officers, firefighters, and corrections officers and
sixteen per cent of the member's compensation for all other employees. In
fiscal year 2014-2015, the employer contributions for normal cost and accrued
liability for each of the two groups of employees in subsection (a) shall be
based on twenty-four per cent of the member's compensation for police officers,
firefighters, and corrections officers and sixteen and one-half per cent of the
member's compensation for all other employees. Commencing with fiscal year
2015-2016 [and each subsequent fiscal year,] until fiscal year
2016-2017, the employer contributions for normal cost and accrued liability
for each of the two groups of employees in subsection (a) shall be based on
twenty-five per cent of the member's compensation for police officers,
firefighters, and corrections officers and seventeen per cent of the member's
compensation for all other employees. In fiscal year 2017-2018, the
employer contributions for normal cost and accrued liability for each of the
two groups of employees in subsection (a) shall be based on twenty-nine per
cent of the member's compensation for police officers, firefighters, and
corrections officers and nineteen per cent of the member's compensation for all
other employees. In fiscal year 2018-2019, the employer contributions for
normal cost and accrued liability for each of the two groups in subsection (a)
shall be based on thirty-three per cent of the member's compensation for police
officers, firefighters, and corrections officers and twenty-one per cent of the
member's compensation for all other employees. In fiscal year 2019-2020, the
employer contributions for normal cost and accrued liability for each of the
two groups in subsection (a) shall be based on thirty-seven per cent of the
member's compensation for police officers, firefighters, and corrections
officers and twenty-three per cent of the member's compensation for all other
employees. Commencing with fiscal year 2020-2021 and each subsequent fiscal
year, the employer contributions for normal cost and accrued liability for each
of the two groups in subsection (a) shall be based on forty-one per cent of the
member's compensation for police officers, firefighters, and corrections
officers and twenty-five per cent of the member's compensation for all other
employees. The contribution rates shall amortize the total unfunded
accrued liability of the entire plan over a period not to exceed thirty years.
The contribution rates shall be subject to adjustment:
(1) If the actual period required to amortize the unfunded accrued liability exceeds thirty years;
(2) If there is no unfunded accrued liability; or
(3) Based on the actuarial investigation conducted in accordance with section 88-105."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall take effect on July 1, 2017.
|
INTRODUCED BY: |
_____________________________ |
|
|
BY REQUEST
|
Report Title:
Employees' Retirement System; Employer Contribution Rates
Description:
Sets new rates for employer contributions to the Employees' Retirement System.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
