Friday, August 19, 2022
Hawai'i Free Press

Current Articles | Archives

Thursday, August 2, 2018
Grassroot Institute releases report on fixing pension debt crisis
By Grassroot Institute @ 6:29 PM :: 4713 Views :: Hawaii State Government, Labor, Taxes

Grassroot Institute releases report on fixing pension debt crisis

The independent, nonprofit think tank debuted its findings July 31 at a presentation on Maui

News Release from Grassroot Institute

HONOLULU, Aug. 1, 2018 >> The Grassroot Institute of Hawaii has released its new report titled "How to resolve Hawaii's public pension debt crisis" about how to bring under control the almost $13 billion in unfunded liabilities of Hawaii’s public pension system.

The debt represents money missing from the state Employee Retirement System (ERS), which, if not addressed now, could jeopardize future public worker retirement benefits and impose a significant burden on Hawaii taxpayers.

Presented at a luncheon at the Maui Country Club on Tuesday, July 31, the Grassroot Institute's report is the first of its kind to compile and examine all 50 states' public pension plan options. It provides solutions based on the actions of states that have fixed their pension debt problems, such as the creation of a new pension plan.

One challenge would be to enlist as many state and county workers as possible into the new plan. Future workers could be required to join the new plan, while current employees could be enticed to join by the different benefits it would offer. Active public employees wouldn’t have to worry about their benefits for hours already worked, since Hawaii’s Constitution protects benefits for employee service already accrued. It does not, however, guarantee benefits for service moving forward — though perhaps that interpretation could be challenged — so making the new plan more attractive than the current plan would be key to migrating them to the new plan.

Incentives to enroll in a new plan could include lower vesting ages, increased portability and higher funding ratios. Ideally this would help lead to the eventual elimination of the system’s debt, strengthening the promises made to Hawaii’s retired public workers and providing relief to Hawaii’s taxpayers — especially the younger ones, who at the moment appear to be the ones who will have to pay off most of Hawaii’s unfunded liabilities in the long run.

By creating a new pension plan based on best practices from other states, Hawaii’s lawmakers could take a step toward helping the ERS match its promised retirement benefits with employee contributions, helping roll back the system’s — and thereby the state’s — unfunded public pension liabilities.

The full report is available on the Grassroot Institute website.

###

Related: How to resolve Hawaii’s public pension debt crisis

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT