Hawaii Taxable General Obligation Bonds 2023
15
OPEB - Employer-Union Trust Fund ("EUTF")
State Adherence to Funding OPEB Continues to Build on a Substantial Balance in Its OPEB Trust Fund
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The EUTF is an agent plan with separate accounts for each employer
Act 268, Session Laws of Hawaii 2013, phased contributions into the full ARC payment by FY 2019
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The UAAL peaked in 2019, well in advance of earlier projections - and has continued to decline since then
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The FY 2022 Valuation report indicated a funded ratio of 35% and a UAAL of $7.1 billion, as compared to $9.7 billion forecast in 2013
As required by Act 268, the State made its pre-funding requirement of $411 million for FY 2023
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The State has contributed $325 million more than required by Act 268 since 2015
STATE
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A funding mechanism was adopted in July 2021 to manage contribution volatility for employers by limiting the range of the dollar amount
contributions to between 101% and 105% of the ARC
EUTF - Actual versus Projected UAAL - State Only
Fiscal Year 2014-2046
($MM)
$12,000
9,554
$9,000
8,902
8,125
9,315
9,066
9,414
7,087
$6,000
$3,000
$0
2014
2022 Projection
Source: Hawaii Employer-Union Health Benefits Trust Fund.
2016
2018
2020
2022
2024
2026
2028
-X-Actual
2030
2032
2034
2036
2038
2013 Projection
2040
2042
2044
2046
OPEB Balance and Funded Ratio - State only(1)
($MM)
$4,500
$4,000
35.0%
30.0%
$3,500
$3,000
$2,500
21.0%
$2,000
16.1%
$3,821
$3,477
$1,500
12.1%
8.6%
$2,371
$1,000
$1,829
4.9%
$500
$1,295
2.4%
$880
$481
$0
$221
2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year
OF
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