Relating To The Employees' Retirement System's Employer Reporting Review.
Summary
SB1361 amends Hawaii law governing the Employees’ Retirement System’s employer reporting review process. The bill changes the timing for when the State or a county must make a payment to the retirement system if a department or agency fails to submit required employer information in the format required by the system. Under the bill, the payment would be due on the first day of the fiscal year that is one year after the end of the fiscal year in which the reporting failure occurred, rather than in the immediately following fiscal year. The payment amount remains tied to the employer contributions attributable to the noncompliant department or agency for the year of the failure.
The bill also revises the annual reporting requirement for the retirement system. Instead of reporting on the current fiscal year, the system must report to the Department of Budget and Finance and the Legislature on the previous fiscal year, including which departments or agencies failed to comply, the amounts due under the delayed payment provision, anticipated amounts for the upcoming fiscal year, and any state budget programs that may be affected. The measure takes effect upon approval.
Impact
SB1361 would amend section 88-103.7, Hawaii Revised Statutes, affecting the Employees’ Retirement System’s administration of employer contribution billing and compliance reporting for State and county departments and agencies. The practical effect is to give noncompliant employers an additional year before pre-payment of contributions is due, while also shifting the system’s annual compliance report to a retrospective basis and requiring identification of possible budget impacts. The bill does not change the underlying contribution obligations under sections 88-124 and 88-126, but it alters the timing and reporting mechanics associated with those obligations.
Sentiment
The bill appears to have been received favorably in committee, passing the Senate Labor and Technology Committee 5-0 and the Senate Ways and Means Committee 12-0, both unamended. The absence of recorded opposition or committee transcript discussion suggests broad agreement on the need to adjust the reporting and billing timeline. The overall sentiment reflected in the voting history is supportive and noncontroversial.
Contention
No specific points of contention are documented in the available materials. The bill’s main policy choice is administrative: whether to delay the billing deadline by one fiscal year and to report on the previous fiscal year instead of the current one. Any potential concern would likely center on the fiscal timing of employer contribution payments and the effect of delayed billing on state or county budget planning, but no committee debate or dissent is provided to show active opposition.