HB887 Summary

• Establishes a Rate Stabilization Reserve Fund within the Hawaii Employer-Union Health Benefits Trust Fund to help cover costs of health and benefit plans for active employees, retirees, and beneficiaries.

• Caps public employer contributions to the OPEB trust fund once separate accounts reach a combined balance of $2,000,000,000, then redirects investment earnings from the trust fund to the rate stabilization reserve fund.

• Diverts $300,000,000 in annual public employer contributions to the Employees' Retirement System to prefund unfunded liabilities once the $2,000,000,000 OPEB threshold is reached.

• Authorizes use of transient accommodations tax revenues to supplement county public employer contribution amounts when counties cannot meet their annual required contributions.

• Effective date: July 1, 2030.