HI SB946

Establishes the Hawaii Employer-Union Health Benefits Trust Fund Captive Insurance Company to manage administration and financing of employee health benefits for the state and counties, effective July 1, 2013.

Creates an 11-member board of trustees composed of 5 representing employees, 5 representing employers, and 1 representing counties, with members appointed by the governor based on union and employer recommendations.

Requires state and county employers to make mandatory annual contributions to an "other post employment benefits reserve fund" beginning fiscal year 2013-2014 at $100,000,000 and $117,000,000 for FY 2013-2014 and 2014-2015 respectively, with phased increases to 100% by 2018-2019.

Establishes a task force to examine the unfunded liability of the health benefits trust fund (estimated at $15-17 billion), evaluate alternative medical benefit plans, and report findings and recommendations to the legislature by January 2014.

Transfers all rights, powers, functions, and duties of the existing Hawaii employer-union health benefits trust fund to the new captive insurance company while preserving employee civil service status and benefits.