STAND. COM. REP. NO.452

Honolulu, Hawaii

, 2003

RE: S.B. No. 63

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Education and Labor, to which was referred S.B. No. 63 entitled:

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

beg leave to report as follows:

The purpose of this measure is to clarify the law that allows the University of Hawaii to implement an optional retirement plan.

Specifically, this measure:

(1) Clarifies that part-time and temporary University of Hawaii employees are not eligible for membership in the University's optional retirement plan; and

(2) Replaces the language regarding the employer's share of the cost of the plan with a provision requiring the State to remit to the University of Hawaii an amount equal to what it contributes to the Employees' Retirement System on behalf of employees in the system for faculty electing to participate in the optional retirement plan.

The University of Hawaii submitted testimony in support of this measure. The Hawaii Government Employees Association submitted testimony supporting the concept of this measure and the Department of Budget and Finance submitted testimony opposing this measure.

Your Committees find that the employer's share of the cost of the optional retirement plan cannot exceed the amount for any group currently in the Employees' Retirement System. This limitation has made it impossible to implement a University plan because the amount of the employer's contribution fluctuates based on market conditions. This measure removes this limitation and effectively will not increase the cost to the State. The University would be responsible for obtaining funding for any plan costs exceeding the amount of the State's remittance to the University.

As affirmed by the records of votes of the members of your Committees on Education and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 63 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Labor,

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BRIAN KANNO, Chair

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NORMAN SAKAMOTO, Chair