HONOLULU (AP) — The Hawaii Legislature is approving a measure overhauling the state's underfunded pension system by reducing benefits of new public employees hired.
The House of Representatives unanimously voted Thursday to pass the bill, sending it to Gov. Neil Abercrombie for his signature or veto.
The legislation raises the retirement age, lowers retirement payouts and requires higher worker contributions to pension accounts.
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It also increases the amount of time before employees become vested, and it lowers the system's projected return on investment.
The changes were estimated to save the state about $440 million over the next five years as it tries to reduce the $7.1 billion unfunded liability of the Employees' Retirement System.
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