SB1204

SECTION 1. The legislature finds that the Hawaii employer-union health benefits trust fund offers health benefits to dependents of state and county employees and retirees. Due to the current interpretation of chapter 87A, Hawaii Revised Statutes, when an employee is killed in the performance of the employee's duty, the employee passes away when eligible for retirement or the retiree passes away, the employee's or retiree's surviving spouse's children that are born after the employee's or retiree's death are eligible to participate in benefit plans offered by the fund. However, the legislature finds that a child born or legally adopted after an employee's or retiree's death who is not the natural or adopted child of the deceased employee or retiree should not be eligible to participate in fund benefit plans because the child is not the child of the state or county employee or retiree.

The legislature further finds that the definition of "employee-beneficiary" limits coverage of surviving children of employees who pass away when eligible for retirement and retirees who pass away until age nineteen, which is lower than surviving children of employees who are killed in the performance of their duty, which is prescribed in the fund’s administrative rules. The date of coverage termination of surviving children of employees who pass away when eligible for retirement and retirees who pass away should be the same as surviving children of employees who are killed in the performance of their duty.

The purposes of this Act are to:

(1) Amend the definition of "dependent-beneficiary" in chapter 87A, Hawaii Revised Statutes, to clarify eligibility of children for participation in fund benefit plans;

(2) Amend the definition of "employee-beneficiary" in chapter 87A, Hawaii Revised Statutes, to distinguish between surviving children and surviving spouses of employees who are killed in the performance of the employee's duty; and

(3) Amend the definition of "employee-beneficiary" in chapter 87A, Hawaii Revised Statutes, to change eligibility of surviving children of employees who pass away when eligible for retirement and retirees who pass away for participation in fund benefit plans.

SECTION 2. Section 87A-1, Hawaii Revised Statutes, is amended by amending the definitions of "dependent-beneficiary" and "employee-beneficiary" to read as follows:

""Dependent-beneficiary" means an employee-beneficiary's:

(1) Spouse;

(2) Unmarried child deemed eligible by the board, including a legally adopted child, stepchild, foster child, or recognized natural child who lives with the employee-beneficiary, but excluding a child born or legally adopted more than ten months after the date of death of:

(A) An employee killed in the performance of duty;

(B) An active employee who was eligible to retire on the date of death; or

(3) Unmarried child regardless of age who is incapable of self-support because of a mental or physical incapacity, which existed prior to the unmarried child's reaching the age of nineteen years.

"Employee-beneficiary" means:

(1) An employee;

(2) The beneficiary of an employee who is killed in the performance of the employee's duty, including:

(A) The surviving spouse, if the surviving spouse does not subsequently remarry; and

(B) The surviving child, if there is no surviving parent who is eligible to be an employee-beneficiary and the child is unmarried and under the limiting age as defined by the board;

(3) An employee who retired prior to 1961;

(4) The beneficiary of a retired member of the employees' retirement system; a county pension system; or a police, firefighters, or bandsmen pension system of the State or a county, upon the death of the retired member, including:

(A) The surviving child [~~of a deceased retired employee~~], if there is no surviving parent who is eligible to be an employee-beneficiary and the child is unmarried and under the [~~age of nineteen; or~~] limiting age as defined by the board; and

(B) The surviving spouse [~~of a deceased retired employee~~], if the surviving spouse does not subsequently remarry;

provided that the employee, the employee's beneficiary, or the beneficiary of the deceased retired employee is deemed eligible by the board to participate in a health benefits plan or long-term care benefits plan under this chapter."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act, upon its approval, shall take effect on July 1, 2019.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	1204
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII