Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 564, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that there are four different retirement options in the noncontributory plan offered by the Employees' Retirement System.

The Employees' Retirement System submitted testimony in support of the measure.

Your Committee finds that four retirement options exist for noncontributory members of the Employees' Retirement System. Unfortunately, there seems to be confusion over the number and types of options available, particularly over the issue of whether or not receiving a "normal retirement" is considered an actual option. Since an option selection made by a member upon retirement is irrevocable, and each option contains a different survivor benefit in the event of the member's death, your Committee believes that it is important that the options be clearly identified. The measure accomplishes this by renaming the option of "normal retirement", to "maximum retirement", similar to the nomenclature used in the contributory plan, so as to avoid confusion over terms.

Your Committee believes that this measure will clarify the retirement options available to noncontributory members of the Employees' Retirement System.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 564, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.