HOUSE OF REPRESENTATIVES

H.B. NO.

2016

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC EMPLOYEES.

 

 

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

 


SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"87A-   Retiree and beneficiary contributions; health benefit plans. Contributions by retirees and beneficiaries to the fund that represent the difference between the monthly contributions by the State or county to the fund and the actual costs of health benefits plans, under sections 87A-33, 87A-33.5, 87A-34, 87A-35, and 87A-36, shall be paid by the board of the employees' retirement system through the withholding of the payment amounts to which retirees and beneficiaries would otherwise be entitled to receive under section 88-6. The amounts shall be based upon copayment billing information received from the board. The board shall submit an annual report to the legislature on the contribution amounts paid to the fund under this section.

A retiree or beneficiary may annually make an election to opt out of the requirement that the board of the employees' retirement system withhold and pay over health benefits copayment amounts to the board as required by this section."

SECTION 2. Section 87A-30, Hawaii Revised Statutes, is amended to read as follows:

"87A-30 Hawaii employer-union health benefits trust fund; establishment. (a) There is established outside the state treasury, a trust fund to be known as the "Hawaii Employer-Union Health Benefits Trust Fund". The fund shall consist of contributions, interest, income, dividends, refunds, rate credits, and other returns. It is hereby declared that any and all sums contributed or paid from any source to the fund created by this part, and all assets of the fund including any and all interest and earnings on the same, are and shall be held in trust by the board for the exclusive use and benefit of the employee-beneficiaries and dependent-beneficiaries and shall not be subject to appropriation for any other purpose whatsoever. The fund shall be under the control of the board and placed under the department of budget and finance for administrative purposes.

(b) The fund shall also consist of contributions received on behalf of retirees and beneficiaries from the board of trustees of the employees' retirement system that represent the difference between the monthly contributions by the State or county to the fund and the actual costs of health benefits plans, under sections 87A-33, 87A-33.5, 87A-34, 87A-35, and 87A-36. The amounts shall be based upon copayment billing information submitted by the trustees to the board of the employees' retirement system."

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. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2091.


 


 

Report Title:

ERS; EUTF; Retiree Copayments

 

Description:

Requires public retiree contributions to the EUTF to be paid through withholdings of retirement benefit amounts from the ERS. (HB2016 HD1)

 

 

 

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