Hawaii House Bill HB933

Hawaii 2022 Regular Session

• Introduced: 1/27/21
• Refer: 1/29/21

Caption

Relating To The Hawaii Employer-union Health Benefits Trust Fund.

Impact

If enacted, this bill will significantly alter the funding structure of the Hawaii Employer-Union Health Benefits Trust Fund, potentially affecting the state's ability to meet its obligation to retirees and beneficiaries. By suspending these contributions, the bill may lead to a growing unfunded liability in the health benefits trust fund, which could necessitate larger future contributions or reforms to ensure that retirees continue to receive their entitled benefits.

Summary

House Bill 933 aims to temporarily suspend the annual required contributions that public employers in Hawaii must make to the Hawaii Employer-Union Health Benefits Trust Fund. This suspension is proposed to last through the fiscal year 2024-2025. The intent behind this bill is to alleviate financial pressure on public employers during a challenging economic period by offering them flexibility regarding their health benefits contributions.

Contention

The proposal may face contention from various stakeholders concerned about the long-term implications of such a suspension. Critics could argue that this decision undermines the financial stability of the health benefits fund and places undue risk on future retirees. Furthermore, there may be debates about whether public employers should be supported through reduced contributions at the expense of their employees' future benefits. The bill's timeline for reinstatement of previous contribution requirements also raises questions about fiscal responsibility.