HB 2240 Summary

• Director of Finance authorized to issue $300,000,000 in general obligation bonds for fiscal year 2022-2023 to pay or prepay the State's other post-employment benefits liability to the trust fund governed by HI Revised Statutes section 87A-42.

• Appropriation does not lapse at end of fiscal year; all unencumbered moneys lapse as of June 30, 2024.

• Bond issuance permitted only if all-in true interest cost is at least 300 basis points less than the trust fund's assumed rate of return and cannot be used to address budget shortfalls.

• Outstanding bond balance must be treated as part of unfunded actuarial accrued liability when calculating annual required contribution, with net cash contribution being the greater of: preliminary contribution minus bond payment, or the standard annual required contribution amount.

• Takes effect July 1, 2022, except section 2 (statutory amendments to section 87A-42) takes effect July 1, 2023.