S.B. 927 Summary

• Increases employer contribution rates to Hawaii's Employees' Retirement System based on actuarial recommendations from the June 30, 2016 five-year review.

• Sets phased contribution rate increases for police officers, firefighters, and corrections officers: 29% (FY 2017-2018), 33% (FY 2018-2019), 37% (FY 2019-2020), and 41% (FY 2020-2021 onward).

• Sets phased contribution rate increases for all other employees: 19% (FY 2017-2018), 21% (FY 2018-2019), 23% (FY 2019-2020), and 25% (FY 2020-2021 onward).

• Maintains the 30-year amortization period for the system's unfunded accrued liability and allows for future rate adjustments if the amortization period exceeds 30 years or based on subsequent actuarial investigations.

• Takes effect July 1, 2017.