Hawaii Taxable General Obligation Bonds 2023 slide image

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 ■ 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 ◉ The UAAL peaked in 2019, well in advance of earlier projections - and has continued to decline since then ◉ ■ 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 ◉ The State has contributed $325 million more than required by Act 268 since 2015 STATE ■ A funding mechanism was adopted in July 2021 to manage contribution volatility for employers by limiting the range of the dollar amount contributions to between 101% and 105% of the ARC EUTF - Actual versus Projected UAAL - State Only Fiscal Year 2014-2046 ($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 HAWAII
View entire presentation