STAND. COM. REP. NO.1437

Honolulu, Hawaii

, 2001

RE: S.C.R. No. 159

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.C.R. No. 159 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE EMPLOYEES' RETIREMENT SYSTEM OF HAWAII TO STUDY CURRENT PENSION BENEFITS OFFERED TO PUBLIC SECTOR EMPLOYEES AND MAKE RECOMMENDATIONS TO MODIFY SUCH BENEFITS INCLUDING THE ADDITION OF AN ALTERNATIVE DEFINED CONTRIBUTION PENSION PLAN,"

begs leave to report as follows:

The purpose of this measure is to request that the Employees' Retirement System of Hawaii study current public sector pension benefits and make recommendations for enhancement or change.

The measure also requests that the Employees' Retirement System's study include the feasibility of adding an alternative defined contribution plan as a part of its retirement benefit offerings.

Testimony in support of the measure was received from the Employees' Retirement System.

Once the study is completed, the measure requests that the results be presented to the House Committee on Labor and Public Employment and Senate Committees on Labor and Health and Human Services no later than twenty days prior to the convening of the Regular Session of 2002, so that the Legislature may review the recommendations and consult with independent parties and industry experts to propose modifying legislation.

Your Committee finds that acquiring and retaining well-trained employees that contribute to the efficiency of government has always been a concern of the public sector, particularly since the public traditionally has not been able to keep pace with private sector salary levels. In both the private and public sector, pension benefits are often a major consideration for employees who initially accept employment and for those who decide to remain in certain positions.

Your Committee also finds that defined contribution pension plans are popular in the private sector and are now being used more often in the public sector. Recognizing this trend, the Employees Retirement System has budgeted funds to conduct such a study.

Your Committee believes that enhancing public sector pension benefits will help improve recruitment for and retention of public sector employees, and that an evaluation of the currently available pension benefits in both the public and private sectors could point to areas in the State's system where improvement could be made.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 159 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

BOB NAKATA, Chair