STAND. COM. REP. NO. 2373

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3003
                                        




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. 3003 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 make all new public
employees contributory members of the Employees' Retirement
System.

     The measure also provides an option for existing Class C
noncontributory members of the Employees' Retirement System to
convert their status to contributory membership.

     Testimony in support of the measure was received from the
United Public Workers and the Hawaii State Teachers Association.
The Employees' Retirement System submitted comments on the
measure.

     Your Committee finds that the measure proposes to:

     (1)  Give those members who switched to the Class C
          noncontributory plan and are in-service on December 31,
          2000, the option to rejoin the contributory plan;

     (2)  Allow Class C noncontributory members who were hired
          after July, 1, 1984, and who are in-service on

 
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                                   STAND. COM. REP. NO. 2373
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          December 31, 2000, the option to join the contributory
          plan; and

     (3)  Require members entering or reentering service after
          December 31, 2000, to become a member of the
          contributory plan.

     Your Committee finds that the implementation of this measure
would result in the Employees' Retirement System creating a
retirement savings plan for those members who make the election
to be a contributory member prior to December 31, 2000, and for
those members who enter or reenter service after December 31,
2000.

     Your Committee believes this proposal has merit and should
continue in the legislative process in order to promote further
discussion.

     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. 3003 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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