§88-122  Determination of employer normalcost and accrued liability contributions.  (a)  Based on regular interestand 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 actuarialvaluations, shall determine the employer's normal cost and accrued liabilitycontributions for each fiscal year beginning July 1 separately for thefollowing two groups of employees:

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

(2)  All other employees.

(b)  The actuarial valuations made for yearsafter 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 theactuary described under section 88-30, and tables, contribution rates, andfactors adopted by the board or legislature for actuarial valuations of thesystem, subject to recommendations made by the actuary appointed under section88-29.

(c)  With respect to each of the two groups ofemployees 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 ofMarch 31 of the valuation year as determined by the actuary using the entry agenormal cost funding method.  On each June 30 the board shall determine theallocation of the assets of the pension accumulation fund between the twogroups of employees in subsection (a); provided that the assets of the pensionaccumulation fund as of June 30, 1976, shall be allocated between the twogroups in the same proportion as the aggregate annual compensation of eachgroup as of March 31, 1976.

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

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

The contribution rates shall be subject toadjustment:

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

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

(3)  Based on the actuarial investigation conducted inaccordance 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; amL 1935, c 48, §§2, 4; RL 1945, pt of §712, subs 3; RL 1955, §6-89; am L 1964, c62, §12; am L 1965, c 222, §15; HRS §88-113; am L 1969, c 110, pt of §1; am L1973, c 19, §1; am L 1977, c 171, §2 and c 191, §2; am L 1981, c 201, §1; am L1982, c 147, §6; am L 1983, c 190, §1; am L 1985, c 128, §1; gen ch 1985; am L1987, 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; amL 2004, c 181, §2; am L 2007, c 256, §3]