(a) To comply with article VII, section 6, of the Constitution of the State of Hawaii, the legislature may prepay the State’s unfunded accrued pension liability. When choosing to do so, the legislature shall appropriate general funds to be expended to pay more than the required contribution for a fiscal year for the State’s unfunded accrued pension liability in order to amortize that unfunded liability earlier than scheduled at the time of the appropriation.
Terms Used In Hawaii Revised Statutes 37B-4
Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(b) For the purpose of this section, the “required contribution for a fiscal year for the State’s unfunded accrued pension liability” means the portion of the contribution for a fiscal year payable by the State that is allocated to amortize the unfunded accrued liability of the State as determined under sections 88-122(d) and 88-123. The term shall not include the portion of the contribution allocated to fund the State’s normal cost for state employees.(c) An appropriation of general funds to pay more than the required contribution for a fiscal year for the State’s unfunded accrued pension liability shall be deposited into the pension accumulation fund established under § 88-114.(d) In no case shall an appropriation of general funds made pursuant to this section be expended for or credited to any cost or liability of a county under chapter 88.
