§383-63  Definitions for experience ratingprovisions.  As used in sections 383-63 to 383-69:

"Adequate reserve fund" means anamount that is equal to the amount derived by multiplying the benefit cost ratethat is the highest during the ten-year period ending on November 30 of eachyear by the total remuneration paid by all employers, with respect to allemployment for which contributions are payable during the last four calendarquarters ending on June 30 of the same year, as reported on contribution reportsfiled on or before October 31 of the same year.  "Remuneration", asused in this definition, means wages as defined in section 383-10.  For thepurpose of determining the highest benefit cost rate, the benefit cost rate forthe first twelve-consecutive-calendar-month period beginning with the first dayof the first month of the ten-year period and for each succeedingtwelve-consecutive-calendar-month period beginning with the first day of eachsubsequent month shall be computed.

Effective for the calendar years 1992 through2007, and from calendar year 2011 and thereafter, "adequate reservefund" means an amount that is equal to one and one-half times the amountderived by multiplying the benefit cost rate that is the highest during the ten-yearperiod ending on November 30 of each year by the total remuneration paid by allemployers, with respect to all employment for which contributions are payableduring the last four calendar quarters ending on June 30 of the same year, asreported on contribution reports filed on or before October 31 of the sameyear.  "Remuneration", as used in this definition, means wages asdefined in section 383-10.  For the purpose of determining the highest benefitcost rate, the benefit cost rate for the first twelve-consecutive-calendar-monthperiod beginning with the first day of the first month of the ten-year periodand for each succeeding twelve-consecutive-calendar-month period beginning withthe first day of each subsequent month shall be computed.

"Annual payroll" means the totalamount of wages for employment paid by an employer during a calendar year; and"average annual payroll" means the average of the annual payrolls ofan employer for a period consisting of the three consecutive calendar yearsimmediately preceding the calendar year for which rates are computed, exceptthat, for an employer whose account has been chargeable with benefitsthroughout at least one year but less than three years ending onDecember 31, 1955, and each December 31 thereafter, "average annualpayroll" means one-third of the sum of the employer's cumulative payrollsfor the period in which the employer has been subject to this chapter, but notmore than the three calendar years ending on such December 31.  Wheneverthere was or is a change in the definition of "employment" or in thedefinition of "wages", effective for the purposes of this chaptergenerally or of this part at the commencement of or at a date within thethree-year period of any average annual payroll, "employment" and"wages" for the purpose of determining each annual payroll withinsuch period and the average annual payroll for such period, shall have themeaning prior to the effective date of such change which they had in accordancewith this chapter then in effect and shall have the meaning after the effectivedate of such change assigned to them by the amendment to this chapter providingfor such change.

"Base period employers" meansemployers by whom an individual was paid the individual's base period wages.

"Base period wages" means the wagespaid to an individual during the individual's base period for insured work.

"Benefit cost rate" means the ratederived by dividing the total net benefits paid to all individuals during atwelve-consecutive-calendar-month period by the total remuneration paid by allemployers with respect to employment for which contributions are payable duringthe last four completed calendar quarters ending at least five months beforethe end of the twelve-consecutive-month period.  "Remuneration", asused in this paragraph, means wages as defined in section 383-10.

"Contributions" includes the moneypayments required by this chapter to be made into the fund by any employingunit on account of having individuals in its employ.  "Contributions"does not include penalties or interest for delinquency in payments.

"Current reserve fund" means thetotal assets of the fund available for the payment of benefits onNovember 30 of each year (exclusive of all moneys credited under section903 of the Social Security Act to the account of this State in the unemploymenttrust fund which have been appropriated for expenses of administration whetheror not withdrawn from the trust fund).

"Reserve balance" means thedifference between all contributions paid by an employer and credited to theemployer's account for all periods before January 1 (including those paidbefore February 1 of the same year with respect to wages paid by theemployer before January 1 of the same year) and the total benefitschargeable to the employer's account for all periods before January 1 ofthe same year. [L 1941, c 304, §1, pt of subs 21; RL 1945, §4248; am L 1949, c316, §1(1), (2); am L 1953, c 41, §1(6); am L 1955, c 18, §1(1); RL 1955,§93-62; am L 1964, c 55, §4; HRS §383-63; am L 1969, c 277, §1; am L 1978, c235, §3; gen ch 1985; am L 1991, c 68, §6; am L 2007, c 110, §4]