STAND. COM. REP. NO. 679-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2458
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Finance,
to which was referred H.B. No. 2458 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to reduce state and county
contributions to the Employees' Retirement System (ERS) thereby
enabling the State to redirect its limited resources by extending
the payment schedule for the actuarial present value cost of the
early retirement incentive bonus from five years to nineteen
years beginning July 1, 1997.

     The Department of Budget and Finance and ERS testified in
support of this measure.  The City and County of Honolulu, the
Hawaii State Teachers Association - Retired, and the County of
Kauai opposed this measure.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Finance that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 2458 and recommend that it pass
Second Reading and be placed on the calendar for Third Reading.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 679-00
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Finance,

                                   
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Chair          TERRY NUI YOSHINAGA, Chair