Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 130, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require notice to a spouse or reciprocal beneficiary for any retirement benefit option selected by a member of the Employees' Retirement System (ERS).

The bill also allows nine-, ten-, and eleven-month employees, elective officers, and appointees of the Governor to specify the effective date of their retirement.

Your Committee finds that ERS members may select from a variety of retirement options. Depending on the retirement preferences of a member and the member's spouse or reciprocal beneficiary, the selection of a particular option may be a point of contention, especially if an option provides less than is expected by a spouse or reciprocal beneficiary.

This bill requires written notice to an ERS member's spouse or reciprocal beneficiary for any retirement benefit option selected by the member. The notice will allow the member and spouse or reciprocal beneficiary to work together to hopefully choose a retirement option that is mutually beneficial to both the member and the member's spouse or reciprocal beneficiary.

Your Committee has amended the bill by making technical amendments that further clarify:

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 H.B. No. 130, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 130, H.D. 1, S.D. 2.