STAND. COM. REP. 882
Honolulu, Hawaii
, 2003
RE: S.B. No. 1312
S.D. 1
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 S.B. No. 1312, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"
begs leave to report as follows:
The purpose of this bill is to assist the Employees' Retirement System (ERS) in the processing of payments, and ultimately assist retirees by:
(1) Requiring the ERS to pay interest on the retroactive amount due retirees whose pensions are not finalized within six calendar months following the month of retirement; and
(2) Authorizing the ERS to assess an employing agency a late fee for each month of delay in reporting unused sick leave balances, lump sum vacation payments, and other pertinent information (e.g., breakdown of retroactive payments) needed to finalize a retiree's pension.
The Hawaii State Teachers Association testified in support of this measure. Although the ERS Board of Trustees testified in opposition, it indicated that it would support the bill if the bill were amended to include an appropriation, or, if an appropriation could not be included in this bill, that the effective date of the bill be extended to allow the ERS time to develop internal procedures to perform the functions prescribed by this measure.
Your Committee has learned that certain employees who retired in 1999 are still waiting for their pension paperwork to be processed. This bill would address the delays in processing retirement benefits and compensate retirees for unreasonable delays in finalizing their pensions.
Your Committee notes that H.B. No. 1159, H.D. 1, crossed over to the Senate this session. H.B. No. 1159, H.D. 1, contains substantially the same provisions as this bill, except that it also appropriates funds to modify ERS' computer system.
Upon careful consideration, your Committee has amended this bill to incorporate the substance of H.B. No. 1159, H.D. 1. Specifically, this bill has been amended to:
(1) Require, instead of allow, the ERS to assess the employing agency a late fee for each month of delay in reporting pertinent information needed to finalize a retiree's pension;
(2) Appropriate funds to modify ERS' computer system. The sum of $1 was inserted to facilitate further discussion; and
(3) Make technical, nonsubstantive amendments for purposes of clarity and style.
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 S.B. No. 1312, S.D. 1, as amended herein, and recommends that it
pass Second Reading in the form attached hereto as S.B. No. 1312, S.D. 1, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,
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____________________________ MARCUS R. OSHIRO, Chair |
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