STAND. COM. REP. NO. 2903

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 101
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 101, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO BUYBACK OF EMPLOYEES'
     RETIREMENT SYSTEM MEMBERSHIP SERVICE CREDIT,"

begs leave to report as follows:

     The purpose of this measure is to allow a retired state
employee who was on temporary loan to the civilian defense agency
in 1942 for fingerprint classification, to buy back membership
service credit from the Employees' Retirement System (ERS) at the
pre-retirement rate of compensation if the retirant applies for
the service credit prior to December 31, 2000.

     Testimony in support of the measure was submitted by the
United Public Workers and oral testimony by a concerned
individual.  Testimony in opposition to the measure was submitted
by the ERS.

     Your Committee finds that when Hawaii and the United States
were drawn into World War II, a degree of uncertainty and
confusion occurred in Hawaii.  There were some individuals who,
while employed by the Territory of Hawaii, who were temporarily
hired or on loan to other agencies such as the Civilian Defense
Agency to help in fingerprint classification.  After returning to
their regular jobs, these employees were given the opportunity to
buy back these months for credited service in the employees'
retirement system.  Eventually, this "buy back" opportunity was

 
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                                   STAND. COM. REP. NO. 2903
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repealed.  However, your Committee has received testimony stating
that there were some employees who were not adequately informed
of this right.  As a consequence, when these individuals retired,
they received less service credit and hence, reduced retirement
benefits.  This measure was introduced to help rectify the
situation for these individuals to allow them to buy back their
lost months of temporary hire when it occurred during World War
II.

     Your Committee has amended the measure by correctly
identifying the Territory of Hawaii, not the State of Hawaii, as
the employer of public employees in 1942 who are affected by this
measure.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 101, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 101, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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