THE SENATE

S.B. NO.

1216

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to actuarial assumptions for THE employees' retirement system.

 

 

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

 


     SECTION 1.  Section 88-105, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  At least once in each five-year period, commencing with fiscal year 1994-1995, the actuary shall make an actuarial investigation of the experience of the system and shall recommend to the board of trustees the adoption for actuarial valuation of the system of mortality, service, and other assumptions, factors, and tables as shall be deemed appropriate and necessary[, and the actuary shall recommend to the legislature for its adoption the investment yield rate].  The actuary shall further recommend the acceptable funded ratio for the system, taking into consideration the guaranties of article XVI, section 2 of the state constitution, section 88-107, and section 88-127."

     SECTION 2.  Section 88-122, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The actuarial valuations [made for years after June 30, 1999,] shall be based on [an eight per cent investment yield rate, salary increase assumptions adopted by the board on the recommendation of the actuary described under section 88-30, and] the contribution rates approved by the legislature and the tables, [contribution rates,] assumptions, and factors adopted by the board [or legislature] for actuarial valuations of the system[, subject to recommendations made by the actuary appointed under section 88-29.]; provided that the investment yield rate assumption for the year ending June 30, 2011, shall be seven and three-quarters per cent."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on June 30, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Employees' Retirement System; Powers and Duties; Board of Trustees; Actuarial Assumptions

 

Description:

Reduces the investment return yield rate assumption for the employees' retirement system for the fiscal year ending June 30, 2011, to seven and three-quarters percent and authorizes the board of trustees of the employees' retirement system to set the investment return yield rate assumption after June 30, 2011, based on recommendations of the actuary.

 

 

 

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