No Plans to Address Hawaii's Liability for Retiree Heath Benefits

Fotalia

Neither the state nor officials of the Hawaii Employer-Union Health Benefits Trust Fund plan to introduce legislation to begin addressing the massive $14 billion in unfunded liabilities taxpayers owe for public-employee retiree health benefits.

Barbara Coriell, administrator for the trust fund, told lawmakers Thursday that the liability is outside of the fund's realm and needs to be dealt with by the employers — the state and counties.

"I'd be very interested in participating in a discussion, but it's larger than the EUTF," Coriell told members of the House committees on Finance and Labor and Public Employment. "The OPEB liability is created by the employers' commitment to provide health care through retirement. The EUTF is simply the administrator."

OPEB is an accounting term that stands for "other post-employment benefits," which refers to retiree health benefits in Hawaii's case.

Rep. Barbara Marumoto said the Legislature wants guidance from the EUTF and its board of trustees on ways to begin tackling the future debt.

"We need a road map on how we get to solvency," Marumoto said.

Rep. Isaac Choy was clearly agitated with Coriell's responses.

"It seems like the board doesn't understand that it has an OPEB liability," Choy said sharply.

"So the EUTF board is more interested in benefits and administration, and as far as the funding is concerned, give it to Kalbert?" he said, referring to state Budget Director Kalbert Young.

Coriell simply replied, "That's my understanding."

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