STAND. COM. REP. NO. 365-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2713

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 2713 entitled:

"A BILL FOR AN ACT RELATING TO SOCIAL SECURITY FOR PUBLIC EMPLOYEES,"

begs leave to report as follows:

The purpose of this bill is to allow approximately 30 employees of the East-West Center to receive Medicare benefits upon their retirement.

Supportive testimony was submitted by the East-West Center, the East-West Center Employees Association, and an East-West Center employee.

Currently, all East-West Center employees contribute to Social Security except for a few employees who, in a 1981 center-wide referendum, voted not to be covered under the Social Security Act. Their decision was retroactive to January 1, 1977. For the past 27 years, these employees have not been contributing to Social Security or Medicare. In recognition of the importance of Medicare coverage, the Federal Government has required this coverage for all public employees hired on or after April 1, 1986, who are not covered by Social Security. However, there is no mechanism to provide this critical coverage to employees such as those at the East-West Center who were hired prior to that date.

Your Committee supports the intent and purpose of this bill. However, upon further review, this bill, as presently drafted, could conceivably apply to approximately 1,000 police officers and firefighters who were hired in the 1970s. Accordingly, your Committee has amended this bill by narrowing its scope to apply only to East-West Center employees.

Due to concerns over the cost of holding a referendum, and at East-West Center's recommendation, additional language has been added to clarify that the East-West Center will reimburse the appropriate agencies for costs incurred in implementing the provisions of this bill as they apply to the East-West Center.

Lastly, technical, nonsubstantive amendments were made for clarity, style, and conformity.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2713, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2713,

H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

MARCUS R. OSHIRO, Chair