STAND

STAND. COM. REP. NO.1130

Honolulu, Hawaii

, 2003

RE: H.B. No. 317

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Labor and Education, to which was referred H.B. No. 317, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

beg leave to report as follows:

The purpose of this measure is to allow University of Hawaii faculty members or lecturers with multiple part-time appointments to meet eligibility requirements for membership in the Employees' Retirement System (ERS).

The ERS, the University of Hawaii (UH), and the University of Hawaii Professional Assembly submitted testimony in support of this measure. The Hawaii Government Employees Association submitted testimony in support of the intent of this measure with recommendations for amendments.

Your Committees find that UH currently employs faculty members, lecturers, and administrative, professional, and technical employees in multiple appointments, depending upon current programmatic needs, in an effort minimize costs and maximize efficiency of staff utilization. The employment of full-time faculty or staff positions is only contemplated when long-term need has been adequately justified.

Your Committees determine that it is necessary to safeguard the retirement benefits of present and future UH faculty, lecturers, and administrative, professional, and technical employees by making them eligible for ERS membership based upon the aggregation of multiple part-time positions. This solution allows the University to continue its efforts to achieve the maximum utilization of its resources while providing for the retirement of UH employees.

Your Committees have amended the measure as follows:

(1) By allowing present and future administrative, professional, and technical UH employees to qualify for membership in the Employees' Retirement System on the basis of aggregated multiple part-time appointments or positions;

(2) By allowing past and present administrative, professional, and technical UH employees to retain the membership benefits for which the University reported them to be eligible prior to the effective date of this Act;

(3) By exempting administrative, professional, and technical UH employees who hold multiple part-time appointments or positions which together aggregate to at least one-half of a full-time equivalent position from provisions allowing the ERS board of trustees to deny membership to part-time or temporary employees;

(4) By changing the effective date of the Act to be upon approval; and

(5) By making technical, nonsubstantive amendments for purposes of clarity and style.

As affirmed by the records of votes of the members of your Committees on Labor and Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 317, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 317, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Education,

____________________________ NORMAN SAKAMOTO, Chair		____________________________ BRIAN KANNO, Chair