Section 383-68 - Contribution rate schedules; fund solvency rate schedule; rates based on experience(a) Before December 31 of each year the fund solvency contribution rate applicable for the following calendar year shall be determined on the basis of the relationship between the most recent current reserve fund and the most recent adequate reserve fund. The fund solvency contribution rate shall apply for calendar years 1985 through 1991 and shall be that rate that appears on the same line as the ratio (rounded to the nearest hundredth) of the current reserve fund to the adequate reserve fund in the fund solvency contribution rate schedule set forth in this paragraph. FUND SOLVENCY CONTRIBUTION RATE SCHEDULE
Ratio of Current Reserve Fund to Adequate Reserve Fund | Fund Solvency Contribution Rate |
2.00 or more | - .5 per cent |
1.50 to 1.99 | - .2 per cent |
1.00 to 1.49 | 0 |
.90 to .99 | + .4 per cent |
.80 to .89 | + .8 per cent |
.60 to .79 | +1.2 per cent |
.40 to .59 | +1.6 per cent |
.20 to .39 | +2.0 per cent |
Less than .20 | +2.4 per cent |
(b) For calendar years 1985 through 1991 the contribution rate of any employer eligible for a reduced rate in accordance with section [383-66(a)(2)] shall be the sum of the employer's basic contribution rate for such year determined pursuant to this subsection and the fund solvency contribution rate determined for such year pursuant to subsection (a); except that no employer's contribution rate shall be less than zero, no employer's contribution rate shall be greater than five and four-tenths per cent, and no employer with a negative reserve ratio shall have a contribution rate less than that employer's basic contribution rate. Subject to the requirements of sections 383-63 to 383-67 and 383-69, an employer's basic contribution rate for a calendar year shall be that rate which appears on the same line as the employer's reserve ratio for the year in the basic contribution rate schedule set forth in this subsection.
BASIC CONTRIBUTION RATE SCHEDULE
Reserve Ratio | Contribution Rate |
.1500 and over | .2 per cent |
.1400 to .1499 | .4 per cent |
.1300 to .1399 | .6 per cent |
.1200 to .1299 | .8 per cent |
.1100 to .1199 | 1.0 per cent |
.1000 to .1099 | 1.2 per cent |
.0900 to .0999 | 1.4 per cent |
.0800 to .0899 | 1.6 per cent |
.0700 to .0799 | 1.8 per cent |
.0600 to .0699 | 2.2 per cent |
.0500 to .0599 | 2.6 per cent |
.0300 to .0499 | 3.0 per cent |
.0000 to .0299 | 3.6 per cent |
-.0000 to -.0499 | 4.2 per cent |
-.0500 to -.0999 | 4.8 per cent |
-.1000 and less | 5.4 per cent |
(c) Effective with calendar year 1992 and thereafter, before December 31 of the previous year the contribution rate schedule for the following calendar year shall be determined on the basis of the relationship between the most recent current reserve fund and the most recent adequate reserve fund, in accordance with this subsection and subsection (d).(1) Whenever the ratio of the current reserve fund to the adequate reserve fund is greater than 1.69, contribution rate schedule A shall apply.(2) Whenever the ratio of the current reserve fund to the adequate reserve fund is 1.3 to 1.69, contribution rate schedule B shall apply.(3) Whenever the ratio of the current reserve fund to the adequate reserve fund is 1.0 to 1.29, contribution rate schedule C shall apply.(4) Whenever the ratio of the current reserve fund to the adequate reserve fund is .80 to .99, contribution rate schedule D shall apply.(5) Whenever the ratio of the current reserve fund to the adequate reserve fund is .60 to .79, contribution rate schedule E shall apply.(6) Whenever the ratio of the current reserve fund to the adequate reserve fund is .40 to .59, contribution rate schedule F shall apply.(7) Whenever the ratio of the current reserve fund to the adequate reserve fund is .20 to .39, contribution rate schedule G shall apply.(8) Whenever the ratio of the current reserve fund to the adequate reserve fund is less than .20, contribution rate schedule H shall apply. Notwithstanding the ratio of the current reserve fund to the adequate reserve fund, contribution rate schedule D shall apply for calendar years 2021 and 2022.
(d) Subject to the requirements of sections 383-63 to 383-69, an employer's contribution rate for calendar year 1992 and for each calendar year thereafter shall be that rate which appears on the same line as the employer's reserve ratio for that year in the contribution rate schedule applicable for the year as specified in subsection (c). CONTRIBUTION RATE SCHEDULES (rates in percentages)
Reserve Ratio | A | B | C | D | E | F | G | H |
.1500 and over | 0.0 | 0.0 | 0.0 | 0.2 | 0.6 | 1.2 | 1.8 | 2.4 |
.1400 to .1499 | 0.0 | 0.0 | 0.1 | 0.4 | 0.8 | 1.4 | 2.0 | 2.6 |
.1300 to .1399 | 0.0 | 0.0 | 0.2 | 0.6 | 1.0 | 1.6 | 2.2 | 2.8 |
.1200 to .1299 | 0.0 | 0.1 | 0.4 | 0.8 | 1.2 | 1.8 | 2.4 | 3.0 |
.1100 to .1199 | 0.0 | 0.2 | 0.6 | 1.0 | 1.4 | 2.0 | 2.6 | 3.2 |
.1000 to .1099 | 0.1 | 0.3 | 0.8 | 1.2 | 1.6 | 2.2 | 2.8 | 3.4 |
.0900 to .0999 | 0.3 | 0.5 | 1.0 | 1.4 | 1.8 | 2.4 | 3.0 | 3.6 |
.0800 to .0899 | 0.5 | 0.7 | 1.2 | 1.6 | 2.0 | 2.6 | 3.2 | 3.8 |
.0700 to .0799 | 0.7 | 0.9 | 1.4 | 1.8 | 2.2 | 2.8 | 3.4 | 4.0 |
.0600 to .0699 | 0.9 | 1.1 | 1.6 | 2.0 | 2.4 | 3.0 | 3.6 | 4.2 |
.0500 to .0599 | 1.1 | 1.3 | 1.8 | 2.2 | 2.6 | 3.2 | 3.8 | 4.4 |
.0300 to .0499 | 1.3 | 1.5 | 2.0 | 2.6 | 3.0 | 3.6 | 4.2 | 4.8 |
.0000 to .0299 | 1.7 | 1.9 | 2.4 | 3.0 | 3.4 | 4.0 | 4.6 | 5.2 |
-.0000 to -.0499 | 2.1 | 2.3 | 2.8 | 3.4 | 3.8 | 4.4 | 5.0 | 5.4 |
-.0500 to -.0999 | 2.5 | 2.7 | 3.2 | 4.0 | 4.4 | 5.0 | 5.4 | 5.6 |
-.1000 to -.4999 | 2.9 | 3.1 | 3.6 | 4.6 | 5.0 | 5.4 | 5.6 | 5.8 |
-.5000 to -.9999 | 3.4 | 3.6 | 4.2 | 5.2 | 5.4 | 5.6 | 5.8 | 6.0 |
-1.0000 to -1.4999 | 4.1 | 4.2 | 4.8 | 5.4 | 5.6 | 5.8 | 6.0 | 6.2 |
-1.5000 to -1.9999 | 4.7 | 4.8 | 5.4 | 5.6 | 5.8 | 6.0 | 6.2 | 6.4 |
-2.0000 and less | 5.4 | 5.4 | 5.6 | 5.8 | 6.0 | 6.2 | 6.4 | 6.6 |
Amended by L 2021, c 1,§ 4, eff. 3/2/2021 and retroactive to 1/1/2021.Amended by L 2012, c 263, § 2, eff. 1/1/2013.Amended by L 2012, c 6, § 2, eff. 3/9/2012.L 1939, c 219, §7(c)(3); am L 1941, c 304, §1, pt of subs 21; RL 1945, §4253; am L 1945, c 19, §1(6); am L 1955, c 16, §1(b); RL 1955, § 93-67; am L 1964, c 55, §10; HRS § 383-68; am L 1969, c 277, §3; am L 1974, c 155, §2; am L 1978, c 235, §2; am L 1984, c 229, §1; gen ch 1985; am L 1991, c 68, §8; am L 2010, c 2, §5 .The 2010 amendment applies retroactively to January 1, 2010, for determinations of the employer's contribution rate and wage base. L 2010, c 2, §8.