STAND. COM. REP. NO.  1167

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1660

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 1660 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 address the Employees' Retirement System's (ERS) ability to eliminate its unfunded liability by:

 

(1)  Increasing state and county contributions to the ERS for all their employees;

 

(2)  Repealing the provision allowing the employer contribution rates to be reduced even if the period required to amortize the unfunded actuarial liability falls below 25 years;

 

(3)  Placing a ban on any new employee benefit enhancements until the ERS becomes fully funded; and

 

(4)  Allowing the ERS Board of Trustees to adopt the actuary's recommendations for the salary scale assumptions.

 

 

 

     The Office of Hawaiian Affairs testified in support of this bill.  The Department of Budget and Finance, Maui Police Department, and the Hawaii Police Department supported the intent of this measure.  The Honolulu Police Department opposed this bill.  ERS provided comments.

 

     Your Committee has amended this bill by:

 

     (1)  Changing the effective date to July 1, 2008; and

 

     (2)  Making technical, nonsubstantive amendments for style,

          clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1660, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1660, H.D. 1.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair