STAND. COM. REP. NO. 960

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1035

       H.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1035, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO EMPLOYEES' RETIREMENT SYSTEM BENEFIT ENHANCEMENT MORATORIUM,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to place a moratorium on the enhancement of benefits until the Employees' Retirement System's funded ratio is one hundred percent in order to assist the System in improving and protecting its funded status.

 

     Your Committee received testimony in support of this measure from the Department of Budget and Finance and the Board of Trustees of the Employees' Retirement System.  Your Committee received testimony in opposition to this measure from the Hawaii State Teachers Association.

 

     Your Committee finds that the employers covered by the Employees' Retirement System are already facing significant increases in their contribution rates.  Any benefit enhancements granted at this time would require even larger contribution rate increases, causing additional hardship to the System's covered employers.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1035, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CLAYTON HEE, Chair