HOUSE OF REPRESENTATIVES

H.B. NO.

2894

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO FRINGE BENEFIT CONTRIBUTIONS.

 

 

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

 

     SECTION 1.  The purpose of this Act is to mitigate the State's carrying costs for contributions made to the employees' retirement system.  More specifically, this Act:

     (1)  Requires the State to pay the contributions on a quarterly basis, with payment due by the end of the quarter following the quarter for which the contributions are paid; and

     (2)  Requires the department of budget and finance to collect interest on reimbursements from state non-general funds for contributions previously paid from the state general fund.

     SECTION 2.  Section 88-124, Hawaii Revised Statutes, is amended to read as follows:

     "§88-124  Payment of state contributions to the system.  [(a)]  The State shall pay on a [monthly] quarterly basis to the various funds of the system the amounts payable by the State under this part.  Payments shall be made [within thirty days after the end of the month.

     (b)  The system shall determine the actual amount owed by the State under this part for each fiscal quarter, commencing with the first fiscal quarter of fiscal year 2005-2006.  The actual amounts owed by the State for the fiscal quarter shall be compared against the amounts paid in the fiscal quarter.  Any additional contributions owed by the State for a fiscal quarter shall be paid] by the director of finance from the general fund before the end of the [next] fiscal quarter[.  Any excess contributions by the State may be used to offset amounts owed by the State for the next fiscal quarter.] following the quarter for which the contributions are paid."

     SECTION 3.  Section 88-125, Hawaii Revised Statutes, is amended to read as follows:

     "§88-125  Contributions by certain state agencies.  (a)  Each of the departments and agencies hereinafter described and the office of Hawaiian affairs shall reimburse the State for the respective amounts [payable] paid by the State to cover the liability of the State to the various funds of the system on account of the employees in such departments and agencies and the trustees of the office of Hawaiian affairs[.  This provision shall apply to any department or agency of the State which is authorized by law to fix, regulate and collect rents, rates, fees or charges of any nature.] whose wages are paid in whole or part from state non-general funds.  The provisions herein shall not apply as to rental units receiving federal subsidies until approval has been obtained from the appropriate federal agency.

     (b)  Whenever any department or agency of the State receives federal-aid funds which may be expended for the purpose of covering the liability of the State to the various funds of the system, the department or agency shall set aside a portion of these funds sufficient to cover the amount of the State's liability to the various funds of the system on account of the employees in the department or agency whose compensation is paid in whole or part from federal funds.

     (c)  The amount [payable] reimbursable by each department or agency of the State[,] or the office of Hawaiian affairs, [covered] as required by this section, shall be determined at least quarterly by the department of budget and finance on the basis of the payroll of the employees of the department or agency, or trustees of the office of Hawaiian affairs, who are members of the system and paid from state non-general funds.  The amount shall be determined in the same manner the allocation of employer contributions is determined in section 88-123.  The comptroller of the State, the office of Hawaiian affairs, or any department or agency having control of its own funds [shall], upon information furnished by the department of budget and finance, shall issue a check for the proper amount, plus interest, to the director of finance, charging the same to the appropriate fund.

     The director of finance shall charge interest on the reimbursed amount for the period between the date the payment of contributions from the general fund is made by the director and a date specified by the director that shall not be later than the date of receipt of the reimbursement by the director.  The rate of interest shall be 0.25 per cent for each month or fraction thereof.

     The director of finance shall place all such sums to the credit of the [State as part payment of the State's contributions to the various funds of the system.] state general fund."

     SECTION 4.  The repeal of this Act on June 30, 2015, pursuant to section 6 shall not affect the payment, reimbursement, or interest charged on state contributions for the fiscal quarter from April to June 2015, to the employees' retirement system.  The payment, reimbursement, or interest for that fiscal quarter shall be subject to this Act as if it were not repealed on June 30, 2015.

     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, and be repealed on June 30, 2015; provided that sections 88-124 and 88-125, Hawaii Revised Statutes, that are amended by sections 2 and 3, respectively, of this Act shall be reenacted in the form in which they read on the day before the effective date of this Act.

 

INTRODUCED BY:

_____________________________

 

 


Report Title:

Employees' Retirement System; State Contributions

 

Description:

Requires state contributions to the employees' retirement system to be paid from the general fund on a quarterly basis.  Sets the deadline for the payment as the end of the fiscal quarter following the quarter for which the contributions are to be paid.  Requires departments and agencies whose employees are paid from state non-general funds to reimburse the state general fund for advance contributions.  Requires the departments and agencies to pay monthly interest at 0.25% on the reimbursements.  Takes effect on 07/01/2010 and is repealed on 06/30/2015.

 

 

 

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