STAND. COM. REP. NO. 1183

Honolulu, Hawaii

, 2005

RE: S.B. No. 425

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred S.B. No. 425, 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 bill is to allow a surviving spouse or surviving reciprocal beneficiary of a member of the Employees' Retirement System (ERS) who is killed in the performance of the member's duties to continue to receive retirement and pension benefits subsequent to the spouse's or reciprocal beneficiary's remarriage, marriage, or entrance into a new reciprocal beneficiary relationship.

The Concerns of Police Survivors-Hawaii Chapter, Chief of the Maui Police Department, State of Hawaii Organization of Police Officers, Hawaii Government Employees Association, and Hawaii State Teachers Association testified in support of this bill. The Board of Trustees of the ERS testified in opposition to this measure. The Department of Budget and Finance submitted comments.

Your Committee finds that numerous individuals, especially public safety personnel, put their lives on the line on a daily basis to protect the general public or are employed in jobs that pose a risk or danger to their safety and well-being. The spouses and reciprocal beneficiaries of individuals who die in the line of duty should not be punished by losing pension and other benefits if they remarry or enter into a new reciprocal beneficiary relationship.

However, your Committee understands the concerns raised by opponents of this measure. Your Committee is also in receipt of legal concerns raised by the Attorney General with the present language in the bill.

Accordingly, your Committee has amended this measure by deleting its contents and inserting the substantive provisions of H.B. No. 344, H.D. 1. As amended, this bill:

(1) Allows a surviving spouse or surviving reciprocal beneficiary to remarry, marry, or enter into a new reciprocal beneficiary relationship and to continue to receive pension and other retirement benefits arising from their former spouse's employment

(2) Allows for the reinstatement of terminated benefits;

(3) Clarifies that the reinstatement of terminated benefits is only applicable in the event of an accidental death;

(4) Applies the ability of a surviving spouse or reciprocal beneficiary to reinstate terminated pensions or benefits for accidental death to all public employees;

(5) Requires that benefit payments accruing between the effective date of reinstatement and the date reinstated benefits payments commence shall be paid without interest;

(6) Clarifies the time frame under which benefits shall be paid to a surviving spouse or beneficiary under the ERS' hybrid retirement plan;

(7) Applies the provision that allows a surviving spouse or surviving reciprocal beneficiary of all public employees to remarry, marry, or enter into a new reciprocal beneficiary relationship without the loss of pension and other retirement benefits to the ERS' hybrid retirement plan;

(8) Clarifies the systems to which reinstatement of pension and retirement benefits shall be applicable; and

(9) Makes technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 425, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 425, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

KIRK CALDWELL, Chair