HB 276 Summary

• Establishes a stabilization fund within the employer-union health benefits trust fund to stabilize healthcare costs for state employees and retirees and their dependents.

• Caps public employer contributions to the other post-employment benefits trust fund once combined accounts reach $2,000,000,000 in reserves.

• Transfers any funds exceeding the $2,000,000,000 cap, including investment earnings and interest, from the other post-employment benefits trust fund to the new stabilization fund.

• Redirects freed-up prefunding dollars to address state priorities including budget balancing, healthcare workforce shortages, and the Honolulu rail project.

• Takes effect on July 1, 2021.