STAND. COM. REP. NO. 585

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 211
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 211, S.D. 1, 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 extend from June 30, 1999 to
June 30, 2001, the pensioners' bonus originally extended to
retirants of the Employees' Retirement System under Act 339,
Session Laws of Hawaii 1990.

     Your Committee finds that retirants' cost of living
increases are computed on simple interest on the original amount
of the retirants' pension.  Therefore, members who retired years
ago could be receiving a pension that has not kept up with
inflation.  By extending the sunset provision to 2001, this bill
reaffirms past legislative policy to help older retirants cope
with the higher cost of living.

     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.
211, S.D. 1, and recommends that it pass Third Reading.


 
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                                   STAND. COM. REP. NO. 585
                                   Page 2


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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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