Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred H.B. No. 322 entitled:

begs leave to report as follows:

The purpose of this bill is to establish a University of Hawaii (UH) retirement system for permanent employees of UH or the community college system who are excluded from bargaining unit (7).

The Teachers Insurance and Annuity Association College Retirement Equities Fund submitted testimony in support of this bill. The Hawaii Government Employees Association submitted testimony in support of the intent of this bill with amendments. UH, the Department of Budget and Finance, and UH Professional Assembly submitted testimony in opposition to this bill.

Your Committee finds that while the State provides funds for positions at UH, it does not have any control over salaries, or the effect that potentially high salaries could have on the Employees Retirement System. This bill will create a retirement program at UH which would place the burden on UH to provide for the extra retirement costs for UH employees with salaries that are controlled and set by UH.

Upon further consideration, your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 322, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 322, H.D. 1, and be referred to the Committee on Labor and Public Employment.