Stress test; annual report
HRS §88-105.5
in effect88-105.5. Stress test; annual report
(a) The actuary shall conduct an annual stress test of the system.
(b) The board shall submit an annual report to
the legislature, not later than twenty days prior to the convening of each
regular session, on the results of the actuary's stress test.
(c) For the purposes of this section, a
"stress test" shall address:
(1) Projections of assets, liabilities, pension debt,
service costs, employee contributions, employer contributions, net
amortization, benefit payments, payroll, and funded ratio for the system for
each of the next thirty years based upon the then-current actuarial
assumptions, including the assumed rate of return;
(2) Projections for the items listed in paragraph
(1), assuming that investment returns are two percentage points lower than the
assumed rate of return and that the State makes employer contributions:
(A) Based upon the then-current funding
policy for the system; and
(B) That are held constant at the levels
calculated for paragraph (1);
(3) Estimates of the items listed in paragraph (1),
if there is a one year loss on planned investments of twenty per cent followed
by a twenty-year period of investment returns two percentage points below plan
assumptions, with the following assumptions regarding contribution policy:
(A) Employer contributions are adjusted based
upon current policy; and
(B) Employer contributions are held constant
at the levels calculated for the baseline projections; and
(4) The estimated actuarially accrued liability, the
total plan normal cost for all benefit tiers, and the employer normal cost for
all benefit tiers, calculated using:
(A) A discount rate equal to the assumed rate
of return; and
(B) The ten-year average of the yield of
thirty-year treasury notes.
[L 2017, c 85, §1]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0088/HRS_0088-0105_0005.htmFetched: 11/10/2026