REPORT TITLE:
Public Employee Benefits


DESCRIPTION:
Requires the Employees' Retirement System to pay for retirant
health benefits if fully funded and if the reimbursement will not
reduce the ERS' earnings below the investment yield rate for the
fiscal year in which the reimbursement is sought.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2326
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC EMPLOYEE BENEFITS.



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

 1      SECTION 1.  Chapter 87, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§87-    Reimbursement for retirant health benefits by the
 
 5 employees' retirement system.  The public employees health fund
 
 6 may obtain reimbursement from the employees' retirement system
 
 7 for costs incurred by the health fund in providing health
 
 8 benefits for retirants if the fiscal requirements of
 
 9 section 88-   are met in the fiscal year for which the health
 
10 fund is seeking reimbursement."
 
11      SECTION 2.  Chapter 88, Hawaii Revised Statutes, is amended
 
12 by adding a new section to be appropriately designated and to
 
13 read as follows:
 
14      "§88-    Reimbursement for retirant health benefits to the
 
15 public employees health fund.  The employees' retirement system,
 
16 upon the request of the public employees health fund, shall
 
17 reimburse the public employees health fund for costs incurred by
 
18 the public employees health fund in providing health benefits to
 
19 retirants; provided that the following requirements are met:
 

 
Page 2                                                     
                                     S.B. NO.           2326
                                                        
                                                        

 
 1      (1)  The employees' retirement system is fully funded in the
 
 2           fiscal year preceding the request by the public
 
 3           employees health fund for reimbursement;
 
 4      (2)  The requested reimbursement does not create any
 
 5           unfunded liability for the employees' retirement
 
 6           system;
 
 7      (3)  The moneys needed to reimburse the public employees
 
 8           health fund to cover the cost of providing health
 
 9           benefits to retirants shall only be drawn from the
 
10           employees' retirement system's investment earnings that
 
11           are in excess of the investment yield rate established
 
12           under section 88-122(b) for the fiscal year in which
 
13           the reimbursement is requested; and
 
14      (4)  The moneys derived under paragraph (3) are sufficient
 
15           to fully reimburse the public employees health fund for
 
16           all costs incurred in providing health benefits for
 
17           retirants."
 
18      SECTION 3.  New statutory material is underscored.
 
19      SECTION 4.  This Act shall take effect upon its approval.
 
20 
 
21                           INTRODUCED BY:_________________________