STAND. COM. REP. NO. 633

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 146
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 146 entitled: 

     "A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT
     SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to establish a defined
contribution retirement plan for public employees.

     The Department of Budget and Finance testified in support of
the concept of the proposed bill.  

     The Hawaii State Teachers Association testified in
opposition to the proposed bill.  The Employees' Retirement
System testified in opposition to the bill and recommended that a
legislative resolution be introduced instead, directing the
Legislative Reference Bureau to conduct a comprehensive study on
the subject.

     Your Committee finds that by establishing a defined
contribution retirement plan for all new public employees, the
State and counties will have the opportunity to develop a
retirement plan with a shorter vesting period and more
portability than is available in the retirement system.

     Your Committee has amended this bill by making technical,
nonsubstantive amendments for purposes of style and clarity.


 
 
                                 STAND. COM. REP. NO. 633
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 146, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 146, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair