STAND

STAND. COM. REP. 426

Honolulu, Hawaii

, 2003

RE: H.B. No. 319

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 319, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

The purpose of this bill is to enable the University of Hawaii (UH) to recruit and retain the best faculty and administrators by allowing UH to establish an optional retirement plan similar to those found in state supported colleges and universities in 48 other states. This bill:

(1) Requires the State to remit to UH an amount equal to what it would have contributed to the Employees' Retirement System on behalf of employees who elect to participate in the optional retirement plan;

(2) Deletes restrictive language that has made it impossible to implement an optional retirement plan; and

(3) Clarifies the eligibility for those who may participate in the optional retirement plan.

UH, the UH Professional Assembly, and the Teachers Insurance and Annuity Association College Retirement Equities Fund testified in support of this bill. The Hawaii Government Employees Association supported the intent of this measure. The Department of Budget and Finance opposed this bill.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 319, H.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

		____________________________ MARCUS R. OSHIRO, Chair