STAND. COM. REP. NO. 2738

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3003
                                        S.D. 1




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. 3003 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 make all new public employees
contributory members of the Employees' Retirement System and to
give existing Class C noncontributory members an option to
convert their status to contributory membership.

     Your Committee finds that the noncontributory plan has been
in existence since July 1, 1984, nearly sixteen years.  The
noncontributory member makes no contribution to the member's
retirement fund and thereby receives more take home pay compared
to a similarly situated contributory member.  Whether this has
been a benefit or a burden to a member's financial situation is
uncertain, but the time may have arrived to re-examine these
assumptions.  This measure provides that opportunity.

     Your Committee has amended this bill by changing the
effective date to July 1, 2010, for purposes of further
discussion.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
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                                   STAND. COM. REP. NO. 2738
                                   Page 2


Committee is in accord with the intent and purpose of S.B. No.
3003, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 3003, S.D. 1.

                                 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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