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County of Hawaii
<br />Department of Water Supply
<br />(A component unit of the County of Hawaii, State of Hawaii)
<br />NOTES TO FINANCIAL STATEMENTS
<br />June 30, 2020 and 2019
<br />NOTE G - EMPLOYEE BENEFITS (Continued)
<br />Benefits provided. Chapter 87A of the HRS grants the authority to establish and amend the
<br />benefit terms to the board of trustees of the EUTF. The EUTF currently provides medical,
<br />prescription drug, dental, vision, chiropractic, supplemental medical and prescription drug,
<br />and group life insurance benefits for retirees and their dependents. The following table
<br />provides a summary of the number of employees covered by the benefits terms as of
<br />July 1, 2019 and 2018:
<br />Contributions. The Department's contribution levels are established by Chapter 87A of the
<br />HRS. For the fiscal years ended June 30, 2020 and 2019, the Department was required to
<br />contribute 100% of the annual required contribution (ARC), as determined by an actuary
<br />retained by the board of trustees of the EUTF. The ARC represents a level of funding that is
<br />sufficient to cover, 1) the normal cost, which is the cost of the other postemployment benefits
<br />attributable to the current year of service; and 2) an amortization payment, which is a catch-
<br />up payment for past service costs to fund the unfunded actuarial accrued liability over the next
<br />thirty years. For the fiscal years ended June 30, 2020 and 2019, contributions to the OPEB
<br />Plan from the Department totaled $1,977,000 and $1,990,000, respectively, which resulted in
<br />an average contribution rate of approximately 18.02% and 18.38%, respectively, of covered -
<br />employee payroll.
<br />For employees hired before July 1, 1996, the Department pays the entire base monthly
<br />contribution for employees retiring with 10 or more years of credited service, and 50% of the
<br />base monthly contribution for employees retiring with fewer than 10 years of credited service.
<br />A retiree can elect a family plan to cover dependents. The Department's contribution is based
<br />on the plan selected by the retiree (single, two-party, or family plans).
<br />For employees hired after June 30, 1996, but before July 1, 2001, and who retire with fewer
<br />than 10 years of service, the Department makes no contributions. For those retiring with at
<br />least 10 years of service but fewer than 15 years of service, the Department pays 50% of the
<br />base monthly contribution. For employees retiring with at least 15 years of service but fewer
<br />than 25 years of service, the Department pays 75% of the base monthly contribution. For
<br />employees retiring with at least 25 years of service, the Department pays 100% of the base
<br />monthly contribution. The Department's contribution is based on the plan selected by the
<br />retiree (single, two-party, or family plans).
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<br />2020
<br />2019
<br />Inactive employees or beneficiaries
<br />currently receiving benefits
<br />98
<br />98
<br />Inactive employees entitled but not yet
<br />receiving benefit payments
<br />11
<br />11
<br />Active employees
<br />164
<br />157
<br />273
<br />266
<br />Contributions. The Department's contribution levels are established by Chapter 87A of the
<br />HRS. For the fiscal years ended June 30, 2020 and 2019, the Department was required to
<br />contribute 100% of the annual required contribution (ARC), as determined by an actuary
<br />retained by the board of trustees of the EUTF. The ARC represents a level of funding that is
<br />sufficient to cover, 1) the normal cost, which is the cost of the other postemployment benefits
<br />attributable to the current year of service; and 2) an amortization payment, which is a catch-
<br />up payment for past service costs to fund the unfunded actuarial accrued liability over the next
<br />thirty years. For the fiscal years ended June 30, 2020 and 2019, contributions to the OPEB
<br />Plan from the Department totaled $1,977,000 and $1,990,000, respectively, which resulted in
<br />an average contribution rate of approximately 18.02% and 18.38%, respectively, of covered -
<br />employee payroll.
<br />For employees hired before July 1, 1996, the Department pays the entire base monthly
<br />contribution for employees retiring with 10 or more years of credited service, and 50% of the
<br />base monthly contribution for employees retiring with fewer than 10 years of credited service.
<br />A retiree can elect a family plan to cover dependents. The Department's contribution is based
<br />on the plan selected by the retiree (single, two-party, or family plans).
<br />For employees hired after June 30, 1996, but before July 1, 2001, and who retire with fewer
<br />than 10 years of service, the Department makes no contributions. For those retiring with at
<br />least 10 years of service but fewer than 15 years of service, the Department pays 50% of the
<br />base monthly contribution. For employees retiring with at least 15 years of service but fewer
<br />than 25 years of service, the Department pays 75% of the base monthly contribution. For
<br />employees retiring with at least 25 years of service, the Department pays 100% of the base
<br />monthly contribution. The Department's contribution is based on the plan selected by the
<br />retiree (single, two-party, or family plans).
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