STAND. COM. REP. 2690

Honolulu, Hawaii

, 2004

RE: S.B. No. 2873

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2873 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 amend the method of determining employer contributions to the Employees' Retirement System.

Your Committee finds that presently, employer contributions to the Employees' Retirement System are based on actuarial valuations that determine employer contributions in dollar amounts for normal cost and amounts required to amortize the projected unfunded liability within twenty-nine years as of June 30, 2000. This measure would set the employers' contribution starting with fiscal year 2005-2006 for police officers, firefighters, and correctional officers at 15.75 per cent and all other employees at 13.75 per cent of the member's compensation, subject to adjustments based on periodic actuarial investigations. The proposed method of setting contributions will provide employers with a more predictable budget and the Employees' Retirement System with a more predictable cash flow.

Your Committee has made technical nonsubstantive changes for clarity and consistency.

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 S.B. No. 2873, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2873, S.D. 1.

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

____________________________

BRIAN T. TANIGUCHI, Chair