STAND. COM. REP. NO. 673-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2446




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Finance,
to which was referred H.B. No. 2446 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to simplify and facilitate the
administration and processing of pension benefits.

     Specifically, this measure:

     (1)  Establishes a two-year time limit for claimants to file
          for service-connected accidental death benefits; and

     (2)  Allows the Employees' Retirement System (System) to
          exclude interest on deficiency payments made by
          contributory plan members.

     Comments were submitted by the System.

     Your Committees find that requiring claims for service-
connected accidental death benefits to be filed within two years
of receipt of written notice from the System will be consistent
with a current provision that requires members to file for
service-connected disability retirement within two years of their
accident, or two years from the date their workers' compensation
benefits cease.


 
 
 
                                 STAND. COM. REP. NO. 673-00
                                 Page 2

 
     Your Committees also find that a deficiency occurs when an
employee's retirement contribution fails to equal the full amount
required by law.  Usually the deficiency is not the fault of the
employee and the charging of interest thereon is unfair.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Finance that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 2446 and recommend that it pass
Second Reading and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Finance,

                                   
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Chair          TERRY NUI YOSHINAGA, Chair