REPORT TITLE:
Employees' Retirement System

DESCRIPTION:
Lowers State and county employer contributions to the ERS by
extending the payment schedule for the actuarial present value
cost of the early retirement incentive bonus from 5 years to 19
years beginning July 1, 1997.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2458
HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.



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

 1      SECTION 1.  Act 212, Session Laws of Hawaii 1994, is amended
 
 2 by amending section 4 to read as follows:
 
 3      "SECTION 4.  The board of trustees of the employees'
 
 4 retirement system shall make payments with respect to all
 
 5 eligible employees who retire pursuant to this Act.
 
 6      The board shall determine the amount equal to the actuarial
 
 7 present value of the difference between the allowances members
 
 8 receive after the receipt of service credit under this Act and
 
 9 the allowances members would have received without the two years
 
10 of additional service credit.  The board shall also determine the
 
11 portion of the additional actuarial present value of benefits to
 
12 be charged to the State and to each county, based on retirements
 
13 during the early retirement incentive bonus period.  The State
 
14 and counties shall make [separate] additional payments to the
 
15 employees' retirement system in the amounts required to liquidate
 
16 the additional actuarial present value of benefits over a period
 
17 of five years beginning July 1, 1997[.]; provided that the
 
18 State's and counties' separate payments under this Act will be
 
19 recalculated so as to liquidate each employer's total unfunded
 

 
Page 2                                                     2458
                                     H.B. NO.           S.D. 1
                                            
                                                        


 1 actuarial present value of benefits as of June 30, 1999 over the
 
 2 period of time specified in section 88-122(d), Hawaii Revised
 
 3 Statutes.
 
 4      The unfunded actuarial present values of benefits payable
 
 5 under this Act are part of the unfunded accrued liability of the
 
 6 employees' retirement system under sections 88-122 and 88-123,
 
 7 Hawaii Revised Statutes."
 
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 3.  This Act, upon its approval, shall take effect
 
11 on June 30, 2010.