STAND. COM. REP. NO. 765

Honolulu, Hawaii

RE:    S.B. No. 133

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 133, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEES' FRINGE BENEFITS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Employer-Union Health Benefits Trust Fund and the Employees' Retirement System to update their financial status information on a more frequent basis.

Specifically, the measure:

     (1)  Requires the actuary of the Hawaii Employer-Union Health Benefits Trust Fund to make an annual valuation of the fund;

     (2)  Requires the actuary to include in the annual valuation of the fund an update of assumptions specific to the fund at least once every three years; and

     (3)  Reduces the maximum period between experience studies of the Employees' Retirement System from five years to three years.

     Your Committee received written comments on this measure from the Employees' Retirement System and the Hawaii Employer-Union Health Benefits Trust Fund.

     Your Committee finds that the increasing liabilities and obligations for the pension and health insurance coverage of public employees are of major concern.  Your Committee further finds that by providing more frequent monitoring of the experience and valuation of the retirement and health insurance funds, this measure will aid in the proper planning of future state and county budgetary needs.

     Your Committee has amended this measure by:

     (1)  Clarifying that the actuary conducting the annual valuation is the actuary retained by the Hawaii Employer-Union Health Benefits Trust Fund pursuant to section 87A-42, Hawaii Revised Statutes; and

     (2)  Making conforming amendments to the purpose section to reflect the substantive provisions of the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 133, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 133, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair