§87-3 Purpose of the fund.
(a) The fund shall be used for the purpose of providing employee-beneficiaries and dependent-beneficiaries with a health benefits plan and a long-term care benefits plan; provided that the fund, including rate credits or reimbursements from any carrier or self-insured plan or any earning or interest derived therefrom, may be used to stabilize health benefits plan or long-term care benefits plan rates and with approval of the legislature through appropriation of funds for other expenses necessary to effectuate these purposes. Notwithstanding any law to the contrary, any rate credit or reimbursement from any carrier or self-insured plan in excess of funds used to stabilize health benefits plan or long-term care benefits plan costs, and for other expenses authorized by the legislature or any earning or interest derived therefrom shall be returned to the State or the county for deposit into the appropriate general fund if the moneys are returned from:(1) A plan that provides health benefits to retirees or the surviving spouses of deceased retirees or employees killed in the performance of their duty whose coverage is financed in whole or in part by the State or by the county; or
(2) A plan that provides health benefits to employees; provided that the amount returned to the general fund shall be only that portion financed by the State or by the county on behalf of the employee.
(b) To the extent that contributions are provided for group life insurance benefits in sections 87-4 and 87-4.5, the fund shall also be used for the purpose of providing group life insurance benefits to employees.
(c) To the extent that contributions are received from employee-beneficiaries and qualified-beneficiaries for long-term care insurance benefits under section 87-23.6, the fund shall also be used for the purpose of providing long-term care insurance benefits to eligible participants.
(d) The fund may assist the State and the counties to implement and administer cafeteria plans authorized under section 125 of the Internal Revenue Code of 1986, as amended, and under part II of chapter 78. [L 1961, c 146, pt of §1; am L 1965, c 235, §1(G); Supp, §5A-3; am L 1967, c 110, §1; HRS §87-3; am L 1978, c 18, §1; gen ch 1985; am L 1989, c 63, §5, c 298, §2, and c 334, §1(2); am L 1991, c 331, §3; am L 1995, c 183, §1; am L 1996, c 269, §1; am L 1997, c 276, §1]