STAND. COM. REP. NO. 1607

Honolulu, Hawaii

, 2005

RE: H.B. No. 631

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 631, H.D. 1, S.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 correct and clarify existing language in chapter 88, Hawaii Revised Statutes, relating to the Employees' Retirement System and to clarify that law to conform with current practices.

The housekeeping measure makes necessary amendments to the law relating to the Employees' Retirement System as follows:

(1) Including language to comply with federal income tax limits on compensation in determining ordinary death benefits;

(2) Specifying which appointed county positions qualify for contributory plan membership;

(3) Conforming the law to current practices and allowing the Employees' Retirement System to calculate a retiree's pension based on the benefit formula at the time of retirement rather than separation from service;

(4) Requiring the counties to remit employer contributions to the Employees' Retirement System on a monthly rather than semimonthly basis;

(5) Specifying that the cost to convert noncontributory plan service to hybrid plan service will be based on the member's age in full years and the member's basic rate of pay as of June 30, 2006; and

(6) Eliminating the deadlines for claiming and purchasing hybrid plan membership service and allowing for the acquisition of qualifying service at any time prior to retirement, in line with current contributory plan procedures.

Your Committee has amended this measure at the recommendation of the Administrator of the Employees' Retirement System, to add a new section to the bill amending subsection 88-321(c), Hawaii Revised Statutes, to include prosecuting attorney investigators and corrections officers not making an election under section 88-271, Hawaii Revised Statutes. In addition, your Committee has renumbered the remaining sections of the bill accordingly and has made technical nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 631, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 631, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair