STAND. COM. REP. NO. 721

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1089

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1089, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to make several changes to the Employees' Retirement System laws with regard to member contributions to the system.

 

     Specifically, this measure:

 

(1)  Gives members one year after returning from an unpaid leave of absence to make the required retirement contributions in order to obtain service credit for the unpaid leave;

 

(2)  Requires, rather than allows, members receiving workers' compensation benefits to have contributions deducted from the members' workers' compensation benefits;

 

(3)  Establishes separate requirements for the acquisition of membership service credit by contributory and hybrid members, depending upon whether deductions commence or a lump sum payment is made after June 30, 2020;

 

(4)  Establishes one-year deadlines for lump sum payments by contributory and hybrid members for membership service credit; and

 

(5)  Establishes one-year deadlines for contributory and hybrid members who become members after June 30, 2016, to claim membership service credit for prior service, military service, or other service credit.

 

     Your Committee received written comments in support of this measure from the Employees' Retirement System.

 

     Your Committee finds that requiring member contributions to be made as early as possible will assist in reducing the total liabilities of the Employees' Retirement System.

 

     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 S.B. No. 1089, S.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair