HI SB2753

Authorizes the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund to create a separate trust fund to receive employer contributions for prefunding post-employment health and other benefits for retirees and their beneficiaries.

Ensures compliance with Government Accounting Standards Board requirements for other post-employment benefits trusts, which mandate irrevocability of contributions, dedication of plan assets to benefit payments, and legal protection of assets from creditors.

Allows public employers using a compliant trust to apply a higher discount rate when calculating unfunded post-employment benefits liability, reducing the reported liability on financial statements.

Supported by the Department of Budget and Finance, Kauai County Council Chair, and departments from the City and County of Honolulu.

Addresses findings from a recent audit showing the Hawaii Employer-Union Health Benefits Trust Fund does not currently meet Government Accounting Standards Board requirements for other post-employment benefits trusts.