STAND. COM. REP. NO. 2273

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2369
                                        




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 S.B. No. 2369 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to allow a contributory
member of the Employees' Retirement System to make a one-time
withdrawal of contributions in case of financial hardship.

     Testimony in support of the measure was received from the
United Public Workers and a private citizen.  The Honolulu Police
Department testified in opposition to the measure.  The
Employees' Retirement System submitted comments.

     Your Committee finds that no other public pension fund in
the nation provides for the withdrawal of employee contributions
while the employee is still in active service.  However, your
Committee is also keenly aware of the tough economic times facing
many families across the State.  To this end, providing public
employees who are contributory members of the Employees'
Retirement System with a means by which to leverage their pension
contributions in the near term is a compassionate and prudent
concept.

     Understanding the concerns of the Employees' Retirement
System and the Honolulu Police Department, your Committee still
believes that a reasonable solution can be formulated.  In light

 
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                                   STAND. COM. REP. NO. 2273
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of this understanding and in its earnest desire to find a
workable solution to this issue, your Committee recommends that
the measure continue to move within the legislative process to
foster further discussion and to provide a vehicle by which this
matter can be resolved.

     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 S.B. No. 2369 and recommends that it pass Second
Reading 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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