STAND. COM. REP. NO. 2739

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3002
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 3002, 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 allow a surviving spouse or
reciprocal beneficiary of all deceased members of the Employees'
Retirement System to receive pension and other retirement
benefits upon election of the surviving spouse or reciprocal
beneficiary.

     Your Committee finds that under current law, the remarriage
or new relationship in the case of a reciprocal beneficiary,
results in loss of benefits from the deceased member.  This
result may cause some persons not to remarry, or, having
remarried, the surviving spouse may be reduced to a lower
standard of living.

     Your Committee has amended this bill by reverting back to
the original draft as introduced, which limited reinstatement of
benefits to surviving spouses or reciprocal beneficiaries of
police officers, firefighters, deputy sheriffs, and public safety
officers.  Your Committee has requested the Employees' Retirement
System to determine the cost impact associated with this measure.


 
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                                   STAND. COM. REP. NO. 2739
                                   Page 2


     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.
3002, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 3002, S.D.
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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