STAND. COM. REP. NO. 635

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1416
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 1416 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Give current deputy sheriffs of the Department of
          Public Safety the option to become class A contributory
          members of the Employees' Retirement System (ERS); and

     (2)  Provide that all deputy sheriffs hired after July 1,
          1999, will be class C noncontributory ERS members.

     Two deputy sheriffs of the Department of Public Safety
verbally testified on this measure.  The Employees' Retirement
System commented on this measure by suggesting clarifying
language.

     Police officers, firefighters, and water safety officers are
currently designated as contributory class A ERS members in
recognition of the hazardous job conditions and critical public
safety responsibilities attached to these positions.  Your
Committee finds that deputy sheriffs perform similar functions
and face similar on-the-job dangers and thus, should be accorded
the same kind of retirement benefits.


 
 
                                 STAND. COM. REP. NO. 635
                                 Page 2

 
     Upon further consideration, your Committee has amended this
measure by:

     (1)  Requiring current deputy sheriffs to convert to
          contributory ERS membership; provided that their
          membership up to July 1, 1999, remains at class C
          noncontributory level;

     (2)  Requiring deputy sheriffs to file with the ERS Board of
          Trustees an election form by December 1, 1999, and
          arrange for additional deductions or lump sum payments
          to commence by January 1, 2000;

     (3)  Designating all deputy sheriffs hired after July 1,
          1999, class A ERS members;

     (4)  Changing the effective date to July 1, 1999; and

     (5)  Making technical amendments for purposes of style,
          clarity, and consistency.

     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. 1416, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1416, 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,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair