The Honolulu Civil Beat reports the retirement system also wants the state and counties to pay for the costs tied to employees who spike their retirement benefits.
The changes are aimed to prevent employees from “spiking” their pay to boost their retirement benefits. The report said the reforms will cut down on the massive unfunded liability facing the Hawaii Employees’ Retirement System.
It is expected that the reforms will be included in a bill that will be part of Hawaii Governor Neil Abercrombie’s administration’s package of bills.
According to the Honolulu Civil Beat, last year unions fought a proposal from the governor to eliminate overtime credit for pensions. A revised bill has been carried over into this session, which calls for a phased approach.
The news report stated that between 2008 and 2010, pension spiking has added an estimated $39.6 million to the ERS’ unfunded liability. An estimated 674 employees have spiked their pensions over the same time period, according to an analysis by the system’s actuary.