HB 887 Summary

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

• Caps public employer prefunding contributions to the OPEB trust fund once separate accounts for each public employer reach a combined balance of $2,000,000,000; thereafter, investment earnings and interest from the OPEB trust fund are transferred to the new rate stabilization reserve fund.

• Redirects $300,000,000 in annual public employer contributions to the Employees' Retirement System to prefund ERS unfunded liabilities once the $2,000,000,000 OPEB trust fund threshold is met.

• Authorizes use of transient accommodations tax revenues to supplement any deficient county public employer contribution amounts to the OPEB trust fund.

• Takes effect on July 1, 2030.