Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 435 entitled:

begs leave to report as follows:

The purpose of this measure is to assist retired public employees by making available flexible benefits option plans tailored to their needs.

Specifically, this bill requires the Hawaii Employer-Union Health Benefits Trust Fund to establish a flexible health benefits option plan to enable retirees and their spouses who are not public employees to select levels of health benefits coverage under separate option categories, at no extra cost to the State and counties as public employers.

Your Committee believes that the flexible health benefits option plan provided for by this bill will allow retired public employees to select benefits coverage tailored to their needs.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 435 and recommends that it pass Third Reading.