Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.C.R. No. 97, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to request that the Employees' Retirement System conduct a study on the feasibility of the implementation of a hybrid retirement plan.

Testimony in support of this measure was submitted by the Employees' Retirement System (ERS) and the Hawaii State Teachers Association.

Your Committee finds that pursuant to a study conducted by the ERS exploring alternative defined contribution plans, prepared under Senate Concurrent Resolution 159, 2001, included the proposal for a hybrid contributory plan. Your Committee further finds that a hybrid contributory plan could apply to new employees, class "C" non-contributory members, and class "A" contributory members and would enhance public sector pension benefits, thereby improving recruitment and retention efforts.

Your Committee determines that further analysis should be conducted to more fully explore the feasibility of the implementation of a hybrid contributory plan by the ERS in order to continue to sufficiently provide for public employees in their retirement.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 97, H.D. 1, and recommends its adoption.