STAND. COM. REP. NO.1384

Honolulu, Hawaii

, 2001

RE: H.B. No. 576

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 576, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to statutorily establish at four per cent the salary growth assumption rate that the Employees' Retirement System uses to compile actuarial valuation data.

Your Committee finds that changing current language providing for a variable salary growth assumption rate calculation to a single four per cent rate for all state and county employees will eliminate the fluctuations in annual appropriations from the system's employers. This in turn will make it possible for the state and county governments to better plan their budgets and help the Employees' Retirement System to make reasonable long-term actuarial valuations.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 576, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair