STAND. COM. REP. NO. 2130

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2691

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Labor, to which was referred S.B. No. 2691 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to require that, beginning on March 1, 2011, all retirees and beneficiaries of the State Retirement System be paid by direct deposit on a monthly basis.

 

     Testimony in support of this measure was submitted by one private organization.  Testimony in opposition of this measure was submitted by two private organizations.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that requiring direct deposit for payment of benefits for retirees and beneficiaries of the Employees' Retirement System will streamline the processing of payments.  Your Committee also finds that, in comparison to mailing checks, the implementation of payments by direct deposit will provide a cost savings to the State in the form of less postage, check printing and imaging costs, and bank fees.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the requirement that all retirees and beneficiaries of the State Retirement System be paid monthly beginning on March 1, 2011; and

 

     (2)  Making a technical, nonsubstantive amendment for the purpose of clarity.

 

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2691, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2691, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

DWIGHT Y. TAKAMINE, Chair