STAND. COM. REP. NO.343

Honolulu, Hawaii

, 2001

RE: S.B. No. 924

S.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 S.B. No. 924 entitled:

"A BILL FOR AN ACT RELATING TO PENSIONERS' BONUS,"

begs leave to report as follows:

The purpose of this measure is to re-establish the pension bonuses provided to qualified retirants of the Employees' Retirement System.

Testimony in support of the measure was received from the Hawaii Government Employees Association and the Oahu Retired Teachers Association. The Department of Budget and Finance opposed passage of the measure. The Employees' Retirement System provided comments on the measure.

Your Committee finds that historically, the Legislature has provided for the extension of pension bonuses to longtime retirants of the Employees' Retirement System in order to help their pensions keep up with inflation. This extension was traditionally accomplished through general law and encompassed a specific time period, therefore requiring periodic reauthorization by the Legislature (Act 339, Session Laws of Hawaii 1990, as amended by Act 98, Session Laws of 1993, as amended by Act 275, Session Laws of Hawaii 1994, as amended by Act 327, Session Laws of Hawaii 1997). Unfortunately, in 1999, the extension of pension bonuses lapsed due to the Governor's veto of a bill extending the bonuses and consequently, longtime pensioners ceased receiving bonuses. This measure would permanently establish the pension bonus program in statutes thereby eliminating the necessity for periodic reenactment.

At the request of the Employees' Retirement System, your Committee has amended the measure by reinserting pension bonus language that was repealed from section 88-11, Hawaii Revised Statutes, as a consequence of the lapsing of the act of law that extended pension bonuses and by making technical nonsubstantive amendments for the purpose of clarity.

Your Committee believes that the measure will assist longtime retirants of the Employees' Retirement System keep pace with inflation and reduce the worry some may have over the bonus lapsing again.

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. 924, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 924, 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,

____________________________

BOB NAKATA, Chair