STAND. COM. REP. NO.1099

Honolulu, Hawaii

, 2003

RE: H.B. No. 403

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 403, 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 reduce the retirement allowance of legislative officers appointed after June 30, 2003, from three and one-half per cent to two per cent.

This measure also imposes a penalty for legislative officers, hired after June 30, 2003, who retire before they reach the age of fifty-five.

The Employees' Retirement System submitted comments on the measure.

Your Committee finds that during these difficult economic times, efforts must be made to reduce government spending. Although providing benefits for our dedicated public employees is of great importance, this objective must be balanced with the struggle to minimize the depletion of the State's limited resources. However, your Committee determines that the reduction should not apply to legislative officers appointed prior to July 1, 2003, so as not to compromise the benefits offered and provided at the time of appointment.

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. 403, 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,

____________________________

BRIAN KANNO, Chair