HI HCR146

Request for the State Auditor to conduct a management audit of the Employer-Union Health Benefits Trust Fund (EUTF), which provides health benefits to state and county employees and dependents.

EUTF appropriations total $174.6-189.2 million for general state employees, $234.3-255 million for Department of Education employees, and $77.4-83.9 million for University of Hawaii employees in fiscal years 2011-2013.

Auditor directed to review EUTF laws, rules, and policies to moderate contribution increases fairly; study the Board of Trustees management structure, composition, and voting methods; and recommend methods to reduce the unfunded actuarial accrued liability ($7.1 billion for non-teacher employees and $1.5 billion for teachers as of July 1, 2007).

Auditor prohibited from recommending changes that would diminish benefits for employees who retired before July 1, 2011, except for eliminating duplicate Medicare coverage.

Auditor required to submit audit with recommended statutory changes to the Legislature by the convening of the 2012 Regular Session.