STAND. COM. REP. NO. 240

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 97
                                     




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. 97 entitled: 

     "A BILL FOR AN ACT RELATING TO PENSION AND RETIREMENT
     SYSTEMS,"

begs leave to report as follows:

     The purpose of this bill is to increase the post retirement
allowance for government employees.

     Your Committee received testimony in support of the measure
from a representative of the Hawaii State Teachers Association
and testimony commenting on the measure from representatives of
the Employees' Retirement System of the State of Hawaii and the
Coalition of Hawaii State/Counties Retirees, Inc.

     Your Committee finds that a single, fully-funded permanent
cost of living increase program would lend more certainty to the
retirement system than the current renewable "bonus" program.  In
addition, a permanent system would provide for a progressive
method for dealing with increased costs of living.

     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. 97 and recommends that it pass Second Reading and be
referred to the Committee on Finance.


 
 
 
                                 STAND. COM. REP. NO. 240
                                 Page 2

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair