Bill Text: HI SB2866 | 2020 | Regular Session | Amended
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund Employee-beneficiary Monthly Contributions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled - Dead) 2020-07-13 - Enrolled to Governor. [SB2866 Detail]
Download: Hawaii-2020-SB2866-Amended.html
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THE SENATE |
S.B. NO. |
2866 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND EMPLOYEE-BENEFICIARY MONTHLY CONTRIBUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The purpose of this Act is to amend section 87A-40, Hawaii Revised Statutes, to mandate that newly retired employees and surviving employee-beneficiaries pay their share of health benefits premiums through monthly electronic deduction from their employees' retirement system pension or their financial institution.
SECTION 2. Section 87A-40, Hawaii Revised Statutes, is amended to read as follows:
"[[]§87A-40[]]
Employee-beneficiary contributions; health benefit plans. (a) Each employee-beneficiary shall make a monthly
contribution to the fund amounting to the difference between the monthly charge
of the health benefits plan selected by the employee-beneficiary and the
contribution made by the State or county for the employee-beneficiary to the
fund. Nothing in this section shall
prohibit any employee-beneficiary from participating in a cafeteria plan
authorized under Title 26 United States Code section 125, Internal Revenue Code
of 1986, as amended, and section 78-30.
(b)
[During] Except as provided in subsection (c), during the
period the health benefits plan selected by an employee-beneficiary is in
effect, the employee-beneficiary, if allowed by law, shall authorize the employee-beneficiary's
contribution to be withheld and transmitted to the fund monthly by the
comptroller, employees' retirement system, or finance officer who disburses the
employee-beneficiary's compensation, pension, or retirement pay. If an employee-beneficiary's contribution to
the fund is not withheld and transmitted to the fund, the employee-beneficiary shall
pay the monthly contribution[:
(1) In the case of
an employee-beneficiary who normally receives the employee-beneficiary's
compensation from the comptroller or employees' retirement system, directly to
the fund by the first day of each month; or
(2) In the case of
all other employee-beneficiaries, to the respective finance officer from whom
the employee-beneficiary normally receives compensation for transmittal to the
fund by the first day of each month.]
directly to the fund by the first day of each
month.
(c) Each employee-beneficiary who retires after
June 30, 2020, and each surviving spouse or surviving child who enrolls in a
health plan offered by the fund as an employee-beneficiary after June 30, 2020,
shall authorize their contribution to the fund to be electronically withheld or
deducted and transmitted to the fund monthly by the employees' retirement
system or the financial institution of the retirant or retirant's surviving
beneficiary. This method may be waived
by the fund if another method is determined to be more appropriate. If the contribution by the retirant or the
retirant's surviving beneficiary is not electronically withheld, deducted, or
transmitted to the fund, the retirant or the retirant's surviving beneficiary
shall pay their monthly contribution directly to the fund by the first day of
each month.
[(c)]
(d) Notwithstanding subsection
(a), an employee-beneficiary's monthly contribution to the fund shall include
the amount that would have been the employee-beneficiary's contribution if the
employee-beneficiary had not elected to participate in the cafeteria plan."
SECTION 3. Section 88-95, Hawaii Revised Statutes, is amended to read as follows:
"§88‑95 Withholding of dues and insurance premiums. A [retired member, if the retired member
requests in writing, may] retirant or the retirant's surviving
beneficiary shall have withheld from the [retired member's] retirant's
or the retirant's surviving beneficiary's pension, annuity, or retirement
allowance, payments to the employer-union health benefits trust fund and
employee organizations for dues and insurance premiums."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
Report Title:
Hawaii Employer-Union Health Benefits Trust Fund
Description:
Requires newly retired employees and surviving employee-beneficiaries to pay their share of health benefits premiums through monthly electronic deductions from their employees' retirement system pension or their financial institution. Requires monthly contributions not electronically withheld, deducted, or transmitted to be paid directly to the employees' retirement system fund by the first day of each month. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
