Bill Text: HI HB2491 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Employer-Union Health Benefits Trust Fund; Other Post-Employment Benefits Trust

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-07-10 - (S) Act 304, 7/9/2012 (Gov. Msg. No. 1421). [HB2491 Detail]

Download: Hawaii-2012-HB2491-Amended.html

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STAND. COM. REP. NO. 2879

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2491

       H.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 2491, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the Hawaii employer-union health benefits trust fund to create a trust fund for the purpose of receiving employer contributions that will prefund post-employment health and other benefit plan costs for retirees and their beneficiaries.

 

     Your Committee received testimony in support of this measure from the Department of Budget and Finance, Hawaii Employer-Union Health Benefits Trust Fund and Chairperson of the Kauai County Council.

 

     Your Committee finds that an audit of the Hawaii employer-union health benefits trust fund concluded that the trust fund does not have a separate trust fund that meets the requirements of the Government Accounting Standards Board regarding other post-employment benefits trusts.  Specifically, an other post-employment benefits trust must have the specific criteria of irrevocability of contributions, dedication of plan assets to paying benefits in accordance with the plan, and legal protection of the plan assets from creditors.  Currently, several counties have made pre-funded contributions toward other post-employment benefits, but are unable to receive credit for the contributions because of the lack of an established trust fund that meets the Government Accounting Standards Board requirements for other post-employment benefits plans.  As such, this measure is intended to provide the means through which these types of contributions may be made and properly accounted for.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2491, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

		____________________________ CLAYTON HEE, Chair