STAND. COM. REP. NO. 2097

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2833

       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. 2833 entitled:

 

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF PENSION OBLIGATION BONDS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Authorize the issuance of pension obligation bonds to fund the employer contributions of the State and counties to the Employees' Retirement System to reduce its unfunded actuarial accrued liability; and

 

     (2)  Appropriate funds for the payment of the employers' contribution to the Employees' Retirement System.

 

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

 

     Your Committee finds that the issuance of pension obligation bonds will create an additional liability for the State that would require fixed debt service payments over a long period.  Your Committee also finds that, in accordance with section 88-122, Hawaii Revised Statutes, the amortization of the unfunded accrued actuarial liability for State employees is currently included in the assessment rate for the Employees' Retirement System.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on this measure; and

 

     (2)  Making technical, nonsubstantive changes 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. 2833, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2833, 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