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Page 19 <br />1 MS. SAKO: Yes, they are. <br />2 MR. HIGGINS: Is that due to law? Why don't <br />3 we have our own retirement system for our own employees <br />4 that we can manage that instead of -- they are part of <br />5 the State system, which is bankrupt? And so, that's my <br />6 question is that I feel like we're throwing our <br />7 employees of this County into an ozone that we have no <br />8 control over, and neither do they. <br />9 MS. SAKO: So it is required by Hawaii <br />10 Revised Statutes that we participate in the Statewide <br />11 Employees Retirement System, so we do. They have <br />12 also -- the State Employee Retirement System, along <br />13 with the legislature, did take action last legislative <br />14 period to increase their rates to help get the plan <br />15 better funded. They have changed management. They <br />16 have changed investments. So, hopefully, they are back <br />17 on the right track to stay within the 30 -year funding <br />18 period. And so, those increased rates went into effect <br />19 July 1st of 2017. So we are paying those increased <br />20 rates, and they will continue to increase for the next <br />21 three years. <br />22 But the basic question is, yes, we are <br />23 required by state law to participate in that plan. <br />24 MR. DOW: I have a question. Are there cost <br />25 of living adjustments built into these contracts? <br />ISLAND COURT REPORTING & TRANSCRIPTION SERVICES <br />(808) 933-9800 <br />