STAND. COM. REP. NO. 49

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 834
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
H.B. No. 834 entitled:

     "A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII
     OPTIONAL RETIREMENT SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to make clarifying amendments to
the optional retirement system of the University of Hawaii.

     Specifically, this bill clarifies that only university
employees who are eligible for membership in the state employees'
retirement system may participate instead in the University of
Hawaii optional retirement system.

     Furthermore, this measure also clarifies that the item open
for negotiation between the university and the exclusive
representative for bargaining unit (7) is the employer's
contributions to the optional retirement system, not the
retirement benefits of the system.

     Your Committee finds that the first clarification is needed
because the optional retirement system was geared to give full-
time faculty a more attractive retirement package than that of
the state employees' retirement system.  There was no intent to
open membership in the optional retirement system to faculty

 
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                                 STAND. COM. REP. NO. 49
                                 Page 2

 
members who are ineligible for membership in the state employees'
retirement system.

     Your Committee further finds that the second change is
needed because the optional retirement system is a defined
contribution plan, not a defined benefit plan like the state
employees' retirement system.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 834 and recommends that it pass Second Reading and be
referred to the Committee on Labor and Public Employment.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair

 
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