STAND. COM. REP. NO. 2277

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3002
                                        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 S.B. No. 3002 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 surviving spouse
or reciprocal beneficiary of a deceased police officer,
firefighter, deputy sheriff, or public safety officer to retain
the pension and other retirement benefits obtained from the
former spouse's or reciprocal beneficiary's employment if the
surviving spouse or reciprocal beneficiary remarries or enters
into a new reciprocal beneficiary relationship.

     Testimony in support of the measure was received from the
Maui County Police Department, the Concerns of Police Survivors
(COPS), Hawaii Chapter, and eight private citizens.  The
Employees' Retirement System provided comments on the measure.

     Your Committee finds that the measure would remove the
"penalty" of losing pension and other retirement benefits if the
surviving spouse or reciprocal beneficiary of a deceased police
officer, firefighter, deputy sheriff, or public safety officer
remarries or enters into a subsequent reciprocal beneficiary
relationship.

     Your Committee has amended the measure by;


 
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                                   STAND. COM. REP. NO. 2277
                                   Page 2


     (1)  Amending section 2 to clarify that the benefits
          provided for under this measure shall be free from the
          restrictions imposed by section 88-1, Hawaii Revised
          Statutes, for both contributory and noncontributory
          members of the Employees' Retirement System;

     (2)  Broadening the effect of the measure to provide the
          opportunity to receive pension and other retirement
          benefits to the surviving spouses or reciprocal
          beneficiaries of all deceased members of the Employees'
          Retirement System;

     (3)  Clarifying that the benefits will continue only on the
          election to continue benefits by the surviving spouse
          or reciprocal beneficiary; and

     (4)  Making a technical, nonsubstantive amendment for
          clarity and to accurately reflect existing statutory
          language.

     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. 3002, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 3002, 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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