STAND. COM. REP. NO.1049

Honolulu, Hawaii

, 2001

RE: H.B. No. 565

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 565, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to require all new retirees and beneficiaries of the Employees' Retirement System (ERS) who retire after June 30, 2001, to designate a financial institution account into which the ERS may deposit their pensions.

The measure also enables the ERS to waive the direct deposit requirement if another method proves to be more appropriate.

The ERS testified in support of the measure.

Your Committee finds that the measure will require retirees who retire after June 30, 2001, to designate a financial institution into which to directly deposit pensions. This practice will save the ERS approximately $60,000 annually in costs associated with the printing, sorting, and mailing of paper checks as well as in the re-issuance of lost or stolen checks.

Your Committee believes that prospectively requiring all retirees to utilize the direct deposit services of their financial institutions will prove to be a safe, efficient, and convenient means by which to disburse pensions.

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 H.B. No. 565, 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 Labor,

____________________________

BOB NAKATA, Chair