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THE SENATE |
S.B. NO. |
1264 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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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. Section 88-122, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Commencing with fiscal year
2005-2006 and each subsequent fiscal year, 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, 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. The contribution rates
shall amortize the total unfunded accrued liability of the entire plan over a
period not to exceed thirty years. Effective January 2, 2008 until January 2,
2011, there shall be no benefit enhancements under this chapter for any group
of members, including any reduction of retirement age, when there is an
unfunded accrued liability.
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 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2011.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Employees' Retirement System; Employer Contribution Rates
Description:
Sets the 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.