WeVote
Log In

Bill

Bill

GM 1235

Informing the Legislature that on June 24, 2026, the Governor signed the following bill into law: SB3096 SD1 HD1 CD1 (ACT 134).

2026 Regular Session

The act sets a staged, employer-contribution schedule to Hawaii’s ERS, with rising rates for public safety and others, aimed at amortizing the unfunded liability.

Received.
#act134
0
WeVote Research Nonpartisan
Bill Summary · GM 1235

Overview

GM 1235 communicates that on June 24, 2026, Governor Josh Green signed SB3096 SD1 HD1 CD1 into law as Act 134. The bill relates to the Employees’ Retirement System (ERS) employer contributions for normal cost and accrued liability, establishing a schedule of contribution rates for different employee groups and setting rules for amortization of the system’s unfunded actuarial liability (UAL).

Main purpose and intent

  • To specify the statutory schedule and methodology for ERS employer contributions for normal cost and accrued liability.
  • To establish progressive, time-bound contribution rates targeted at police, firefighters, corrections officers, and all other ERS members.
  • To ensure the ERS’s unfunded accrued liability is amortized within a defined period, with adjustments if funding conditions change.

Key provisions and changes

  • Section 88-122(e) (amendment):

    • Sets a staged schedule (beginning fiscal year 2005-2006 through 2027-2028 and beyond) for employer contribution rates as a percentage of member compensation.
    • Two employee groups referenced in subsection (a):
    • Police officers, firefighters, and corrections officers.
    • All other employees.
    • Historical progression of rates by fiscal year:
    • Early years (2005-2008): 15.75% for public safety group; 13.75% for all other employees.
    • 2008-2011: 19.7% for public safety; 15% for others.
    • 2012-2013: 22% for public safety; 15.5% for others.
    • 2013-2014: 23% for public safety; 16% for others.
    • 2014-2015: 24% for public safety; 16.5% for others.
    • 2015-2016 to 2016-2017: 25% (public safety); 17% (others).
    • 2017-2018: 28% (public safety); 18% (others).
    • 2018-2019: 31% (public safety); 19% (others).
    • 2019-2020: 36% (public safety); 22% (others).
    • 2020-2021 through 2026-2027: 41% (public safety); 24% (others).
    • 2027-2028 and thereafter: 44% (public safety); 24% (others).
    • These rates apply to the combined normal cost and accrued liability.
    • The rates must amortize the ERS’s total unfunded accrued liability within a period not exceeding the maximum funding period.
    • Adjustments to rates may occur if:
    • The actual amortization period exceeds the maximum funding period.
    • There is no unfunded accrued liability.
    • An actuarial investigation (per section 88-105) recommends adjustment.

  • Section 3: Effective date

    • The Act takes effect on July 1, 2027.

Who is affected

  • Employers contributing to the Hawaii Employees’ Retirement System (i.e., state and other public employers) for the purpose of funding retirement benefits for ERS members.
  • ERS members, particularly police officers, firefighters, and corrections officers, as their retirement system contributions are part of the employer’s cost.

Procedural/timeline aspects

  • Placement: Act 134 (SB3096) amends statute to implement the new contribution framework.
  • Effective date: July 1, 2027.
  • The bill’s schedule spans from fiscal year 2005-2006 onward, but the new framework culminates in the stated rates and adjustments through future years.

Notes

  • The summary focuses on the substantive operating changes to ERS funding, not broader pension policy.
  • Specific actuarial investigations and any subsequent rate adjustments would be determined under ongoing actuarial processes per the amendments.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.