Report Title:

Employees Retirement System; Certification and Payment of County Contributions

Description:

Prohibits the board of trustees for the employees' retirement system from certifying a contribution amount greater than that certified as the specific county's contribution to cover its future retirees' pensions for fiscal year 2002-2003. (SD1)

THE SENATE

S.B. NO.

649

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to Employees Retirement System.

 

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

SECTION 1. The legislature finds that the counties are facing very difficult financial situations and are reviewing ways to decrease costs in some areas and maintain current levels of funding in other areas. The legislature is also aware that expenditures for contributions to the employees’ retirement system are expected to increase in the future. The purpose of this Act is to specify that the county contributions for retirement shall be maintained at the current levels for another year.

SECTION 2. Section 88-126, Hawaii Revised Statutes, is amended to read as follows:

"§88-126 Certification and payment of county contributions to system. The board of trustees shall certify annually to the councils of each county and to the director of finance of the State the amount due from each county on account of its employees who are members of the system. Provided, however, that for fiscal year 2003-2004, the board shall not certify an amount that is greater than the amount certified to the specific county in fiscal year 2002-2003. The council of each county shall include in its annual budget the amount certified to it by the board. The amount shall be paid by the county before October 1 and April 1 of each fiscal year. If the amount or any portion thereof is not paid by the county before October 1 and April 1 of each fiscal year, the director of finance shall retain out of the real property tax money collected for the year a sum equal to the amount or portion thereof not so paid. All the moneys retained and collected by the director of finance shall be deposited in the appropriate fund or funds of the system. The amount of any deficiency in meeting the obligations shall be added to the amount due from the county for the succeeding year."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.