2021 Plan of Finance Amortization
OPEB
The State Continues to Build a Substantial Balance in its OPEB Trust Fund
OF
STATE O
1959
HAWAI
◉ Act 268, Session Laws of Hawaii 2013 requires the State to pre-fund its OPEB costs and pay down the unfunded actuarial accrued liability over
a 30-year period
Under the Act, increasing OPEB prefunding contributions were phased in through FY 2018 with 100% of the ARC payment made beginning with
FY 2019
The State made its full ARC payment for FY 2021 and an additional prefunding contribution of $390 million, making the total prefunding
contribution for FY 2021 $827 million
State OPEB prefunding contributions and investment returns resulted in a State OPEB Trust Fund balance estimated to be $3.7 billion at the
end of FY 2021, up from $2.4 billion at the end of FY 2020
The State's FY 2021 OPEB contributions and investment returns are expected to increase the funded ratio above the FY 2020 funded ratio of
21%
EUTF Prefunding Contributions (State Only)
Millions
EUTF Balance and Funded Ratio (State Only)
$900
$827
$4,000
$800
Prefunding Requirements
$3,500
$700
■Total Prefunding Contributions
$3,000
$600
$2,500
$500
$430 $430 $433 $433 $437
$2,000
$3,733
$400
$333
$337
$297
$1,500
$300
$250
$230
$2,371
$1,000
$200
$164
$1,829
$117
$1,295
$83
$500
$100
$880
$481
$221
$0
$0
2015
2016
2017
2018
Fiscal Year
2019
2020
2021
2015
2016
2017
2018
2019 2020 2021(1)
Fiscal Year
16
(1)
Source: Hawaii Employer-Union Health Benefits Trust Fund.
Estimated. Includes a $390 million prefunding contribution accrued as of June 30, 2021 and paid in July 2021.View entire presentation