HI HB276

Establishes a new stabilization fund within the employer-union health benefits trust fund to cover increasing costs of health and other benefit plans for active employees, retirees, and their dependents.

Caps public employer prefunding contributions to the other post-employment benefits trust fund once separate accounts reach a combined balance of $2,000,000,000.

Transfers all unencumbered moneys exceeding the $2,000,000,000 cap from the other post-employment benefits trust fund to the stabilization fund, including investment earnings and interest.

Directs earnings from the $2,000,000,000 base in the other post-employment benefits trust fund to transfer to employer accounts within the stabilization fund once the cap is reached.

Takes effect July 1, 2021, and aims to redirect prefunding resources toward addressing state budget shortfalls, workforce shortages, and infrastructure needs while managing unfunded liabilities of $12.4 billion as of July 1, 2019.