HI HB1065

Requires state and county employers to pay the Employees' Retirement System the actuarial cost when separating a significant number of employees from service, including through privatization, facility closure, or workforce restructuring.

Actuarial cost includes expected payments toward unfunded actuarial accrued liability over an amortization period and the present value of any actuarial liability loss, calculated using system actuarial assumptions with investment return assumption reduced by one percentage point.

Payment must be made before October 1 of the second fiscal year following separation, though the board may extend the timeline or permit installment payments; the system may also charge fees for cost estimates and actuarial determinations.

"Significant number" is defined as the lesser of one percent of all active system members or five percent of the employing agency's positions as of the end of the prior fiscal year.

Effective date is July 1, 2050.