§88-122  Determination of employer normal
cost and accrued liability contributions.  (a)  Based on regular interest
and such mortality and other tables as are adopted by the board of trustees,
the actuary engaged by the board, on the basis of successive annual actuarial
valuations, shall determine the employer's normal cost and accrued liability
contributions for each fiscal year beginning July 1 separately for the
following two groups of employees:



(1)  Police officers, firefighters, and corrections
officers; and



(2)  All other employees.



(b)  The actuarial valuations made for years
after June 30, 1999, shall be based on an eight per cent investment yield rate,
salary increase assumptions adopted by the board on the recommendation of the
actuary described under section 88-30, and tables, contribution rates, and
factors adopted by the board or legislature for actuarial valuations of the
system, subject to recommendations made by the actuary appointed under section
88-29.



(c)  With respect to each of the two groups of
employees in subsection (a), the normal cost for each year after June 30, 1994,
shall be the percentage of the aggregate annual compensation of employees as of
March 31 of the valuation year as determined by the actuary using the entry age
normal cost funding method.  On each June 30 the board shall determine the
allocation of the assets of the pension accumulation fund between the two
groups of employees in subsection (a); provided that the assets of the pension
accumulation fund as of June 30, 1976, shall be allocated between the two
groups in the same proportion as the aggregate annual compensation of each
group as of March 31, 1976.



(d)  Commencing with fiscal year 1994-1995 and
each subsequent fiscal year, the actuary shall determine the total unfunded
accrued liability using the entry age normal cost funding method separately for
each of the two groups of employees in subsection (a).  The accrued liability
contribution for each of the two groups of employees shall be the annual
payment required to liquidate the unfunded accrued liability over a period of
twenty-nine years beginning July 1, 2000.  Any increase or decrease in the
total unfunded accrued liability resulting from legislative changes in the
benefit provisions of the employees' retirement system shall be liquidated over
a period of time to be determined by the actuary.



(e)  Commencing with fiscal year 2005-2006 and
each subsequent fiscal year, the employer contributions for normal cost and
accrued liability for each of the two groups of employees in subsection (a)
shall be based on fifteen and three-fourths per cent of the member's
compensation for police officers, firefighters, and corrections officers and
thirteen and three-fourths per cent of the member's compensation for all other
employees.  Commencing with fiscal year 2008-2009 and each subsequent fiscal
year, the employer contributions for normal cost and accrued liability for each
of the two groups of employees in subsection (a) shall be based on nineteen and
seven-tenths per cent of the member's compensation for police officers,
firefighters, and corrections officers and fifteen per cent of the member's
compensation for all other employees.  The contribution rates shall amortize
the total unfunded accrued liability of the entire plan over a period not to
exceed thirty years.  Effective January 2, 2008 until January 2, 2011, there
shall be no benefit enhancements under this chapter for any group of members,
including any reduction of retirement age, when there is an unfunded accrued
liability.



The contribution rates shall be subject to
adjustment:



(1)  If the actual period required to amortize the
unfunded accrued liability exceeds thirty years;



(2)  If there is no unfunded accrued liability; or



(3)  Based on the actuarial investigation conducted in
accordance with section 88-105. [L 1925, c 55, pt of §8; am imp L 1927, c 251,
§4; am L 1933, c 181, §3; am L Sp 1933, c 10, §§2, 3; RL 1935, pt of §7927; am
L 1935, c 48, §§2, 4; RL 1945, pt of §712, subs 3; RL 1955, §6-89; am L 1964, c
62, §12; am L 1965, c 222, §15; HRS §88-113; am L 1969, c 110, pt of §1; am L
1973, c 19, §1; am L 1977, c 171, §2 and c 191, §2; am L 1981, c 201, §1; am L
1982, c 147, §6; am L 1983, c 190, §1; am L 1985, c 128, §1; gen ch 1985; am L
1987, c 291, §1; am L 1988, c 41, §7; am L 1989, c 184, §1; am L 1991, c 170,
§1; am L 1993, c 144, §1; am L 1994, c 276, §9; am L 1996, c 79, §1; am L 1997,
c 327, §3; am L 1998, c 151, §1; am L 2001, c 104, §1; am L 2002, c 147, §2; am
L 2004, c 181, §2; am L 2007, c 256, §3]