HOUSE OF REPRESENTATIVES

H.C.R. NO.

78

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING THE EMPLOYER-UNION HEALTH BENEFITS TRUST FUND, IN CONJUNCTION WITH THE EMPLOYEES' RETIREMENT SYSTEM, TO CLARIFY LAWS PERTAINING TO THE PROVISION OF HEALTH BENEFITS AT RETIREMENT FOR EMPLOYEES HAVING A BREAK IN SERVICE.

 

 

WHEREAS, before July 1, 1996, employees of the State, counties and legislature were eligible for full employer contributions on health benefits after ten years of service; and

WHEREAS, employees of the State, counties and legislature hired after June 30, 1996 are eligible for full employer contributions on health benefits after twenty-five years of service; and

WHEREAS, employees of the State, counties and legislature who were employed by the State, county or legislature before July 1, 1996, but left employment and then rejoined the State, county or legislature after June 30, 1996, experienced a break in service; and

WHEREAS, employees who experienced a break in service must accrue twenty-five of service to become eligible for full health benefits; and

WHEREAS, employees who initially entered public service before July 1, 1996, did so with the understanding that the employer would provide full health benefits after ten years of service; and

WHEREAS, it is the intent of the Legislature that these employees who experienced such a break in service should receive full employer contributions on health benefits after ten years of service; and

WHEREAS, some of the employees who entered public service before 1986 were enrolled in a contributory plan and were subsequently reimbursed for their contributions when they left State, county or legislative employment; and

WHEREAS, it is the intent of the Legislature that these employees who experienced such a break in service be allowed to buy back any contributory service before the break in service, according to a formula prescribed by the Board of the Employer-Union Health Benefits Trust Fund; and

WHEREAS, all other employees who entered public service after 1986, were enrolled in the noncontributory plan and thus were not entitled to a reimbursement after their break in service; and

WHEREAS, it is the intent of the Legislature that the law be changed so that employees who were employed by the State, counties or legislature before July 1, 1996 -- regardless of whether they were previously enrolled in a contributory or noncontributory plan -- but left employment and then rejoined the State, counties or legislature after June 30, 1996, be entitled to full employer contributions on health benefits after ten years of service; and

WHEREAS, changes to Chapter 87A, Hawaii Revised Statutes may also require changes to Chapter 88, Hawaii Revised Statutes; and

WHEREAS, Chapters 87A and 88, Hawaii Revised Statutes are complex statutes, requiring expertise specific to the operations of the Employer-Union Health Benefits Trust Fund and the Employees' Retirement System; and

WHEREAS, changes to Chapters 87A and 88, Hawaii Revised Statutes, could have wide-ranging and far-reaching impacts to the beneficiaries of the respective funds; and

 

WHEREAS, the Administrators of the Employer-Union Health Benefits Trust Fund and the Employees' Retirement System have previously discussed proposed amendments to Chapters 87A and 88, Hawaii Revised Statutes, to address the buyback of prior contributory service and ten-year eligibility of State, county or legislative employees who were employed before July 1, 1996, left employment, and rejoined employment after June 30, 1996; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, the Senate concurring, that the Employer-Union Health Benefits Trust Fund, in conjunction with the Employees' Retirement System, are requested to draft proposed amendments to Chapters 87A and 88, Hawaii Revised Statutes, to address the buyback of prior contributory service and ten-year eligibility of State, county or legislative employees who left employment before July 1, 1996 and rejoined employment after June 30, 1996; and

BE IT FURTHER RESOLVED that the Administrator of the Employer-Union Health Benefits Trust Fund submit proposed legislation to the Legislature at least twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to: the Director of Budget and Finance; the Administrators of the Employer-Union Health Benefits Trust Fund and the Employees' Retirement System; the President of the Hawaii Government Employees Association; the State Director of the United Public Workers; the President of the Hawaii State Teachers' Association; and the Executive Director of the University of Hawaii Professional Assembly.

Report Title:

Requesting the Employer-Union Health Benefits Trust Fund, in conjunction with the Employees' Retirement System, to clarify laws pertaining to the provision of health benefits at retirement for employees having a break in service.