STAND. COM. REP. NO. 1316

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1544
                                     S.D. 2
                                     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 S.B. No. 1544, S.D. 2, 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 allow deputy sheriffs of the
Department of Public Safety (PSD) to retire without penalty after
25 years of service, if the last five or more years prior to
retirement is credited service in that capacity.

     The Hawaii Government Employees Association and a deputy
sheriff testified in support of the intent of the bill and
suggested amendments.  The Department of Budget and Finance
testified in opposition to the bill.  The Employees' Retirement
System and a deputy sheriff submitted comments on the bill.

     Upon further consideration, your Committee has amended this
bill by deleting the substance, and inserting therefor, the
substance of H.B. No. 499, H.D. 2 and H.B. No. 1416, H.D. 2.
Your Committee notes that both H.B. No. 499, H.D. 2 and H.B. No.
1416, H.D. 2, passed out of the House of Representatives earlier
this session after public hearings before this Committee and the
Committee on Finance.  As amended, this bill:

     (1)  Gives current deputy sheriffs of the PSD and
          conservation and resources law enforcement officers of

 
 
                                 STAND. COM. REP. NO. 1316
                                 Page 2

 
          the Department of Land Natural Resources the option of
          converting from class C to class A members of ERS;

     (2)  Allows current deputy sheriffs and conservation and
          resources law enforcement officers to retire after 25
          years of service irrespective of age; and

     (3)  Requires deputy sheriffs and conservation and resources
          law enforcement officers hired after June 30, 1999, be
          class A members.

     Your Committee finds that deputy sheriffs and conservation
and resources law enforcement officers are commissioned with full
police powers, and therefore are entitled to the same retirement
benefits as other law enforcement officials.

     Your Committee notes that clarification and education may be
needed for employees who are unaware that by re-entering class A
membership, they are required to "buy back" their years of
service.  For example, if an employee had 10 years of service,
none of which were in class A, and chooses to enter class A, that
individual would have to independently pay for 10 years of
contributions.

     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 S.B. No. 1544, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1544, S.D. 2, 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