HB 1042: RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM'S EMPLOYER REPORTING REVIEW.

A BILL FOR AN ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM'S EMPLOYER REPORTING REVIEW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to extend the deadline for the pre-payment and reporting of employer contributions by departments or agencies of the State or counties that failed to provide the information required by the System in the required format.

     SECTION 2.  Section 88-103.7, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read as follows:

     "(c)  If a department or agency of the State or county fails to furnish the system with the information required pursuant to this section in the format required by the system, the State or county shall pay to the system, on the first day of the fiscal year [following] that is one year after the end of the fiscal year in which the failure to furnish the required information occurred, an amount equal to the employer contributions payable by the State or county, relative to the department or agency that is not in compliance with this section, during the fiscal year in which the failure to furnish the required information occurred.  This amount shall be applied to contributions required under section 88-124 for the State and section 88-126 for the counties."

     2.  By amending subsection (f) to read as follows:

     "(f)  The system shall annually submit to the department of budget and finance and the legislature, not later than twenty days prior to the convening of each regular session, a report that details the following for the [current] previous fiscal year:

     (1)  Any department or agency of the state or counties that failed to comply with this section; and

     (2)  Any amounts required to be paid under subsection (c), including the anticipated amounts payable in the upcoming fiscal year, and identification of any state budget programs that may be affected."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Employees' Retirement System; Employer Reporting

Description:

Extends the due date of payment to the Employees' Retirement System for departments or agencies of the State or counties that fail to comply with reporting requirements by one year after the review period.  Changes the time frame for which the Employers' Retirement System must report regarding any department or agency's failure to submit required information to the Employees' Retirement System from the current fiscal year to the previous fiscal year.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM'S EMPLOYER REPORTING REVIEW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to extend the deadline for the pre-payment and reporting of employer contributions by departments or agencies of the State or counties that failed to provide the information required by the System in the required format.

     SECTION 2.  Section 88-103.7, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read as follows:

     "(c)  If a department or agency of the State or county fails to furnish the system with the information required pursuant to this section in the format required by the system, the State or county shall pay to the system, on the first day of the fiscal year [following] one year after the end of the fiscal year in which the failure to furnish the required information occurred, an amount equal to the employer contributions payable by the State or county, relative to the department or agency that is not in compliance with this section, during the fiscal year in which the failure to furnish the required information occurred.  This amount shall be applied to contributions required under section 88-124 for the State and section 88-126 for the counties."

     2.  By amending subsection (f) to read as follows:

     "(f)  The system shall annually submit to the department of budget and finance and the legislature, not later than twenty days prior to the convening of each regular session, a report that details the following for the [current] previous fiscal year:

     (1)  Any department or agency of the state or counties that failed to comply with this section; and

     (2)  Any amounts required to be paid under subsection (c), including the anticipated amounts payable in the upcoming fiscal year, and identification of any state budget programs that may be affected."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Employees' Retirement System; Employer Reporting

Description:

Adds a year between the review period and the billing due date and changes reporting of review results from the current fiscal year to the previous fiscal year.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  317

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1042

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1042 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM'S EMPLOYER REPORTING REVIEW,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Extend the deadline for payment to the Employees' Retirement System for departments or agencies of the State or counties that fail to comply with reporting requirements by one year after the review period; and

     (2)  Change the timeframe for which the Employees' Retirement System must report regarding any department or agency's failure to submit required information to the Employees' Retirement System from the current fiscal year to the previous fiscal year.

     Your Committee received testimony in support of this measure from the Board of Trustees of the Employees' Retirement System.

     Your Committee finds it important to provide the Employees' Retirement System more time to effectively collect, review, and analyze the data reported to it and for employers to prepare pre-payment to the Employees' Retirement System, to ensure that requirements are adequately met.  Your Committee believes this measure can alleviate undue burdens on the overall process of employer reporting, while ensuring that requirements and deadlines are adequately met.

     Your Committee amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency and style.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1042, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1042, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor,