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. 797, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to permit all retirees or beneficiaries of the state retirement system who retire or become beneficiaries after January 1, 2003, the option to be paid on either a monthly or a semimonthly basis.

A further purpose of this measure would allow nine-, ten-, and eleven-month employees, elective officers, and appointees of the Governor to specify their effective date of retirement.

Your Committee finds that section 88-6, Hawaii Revised Statues, as amended by Act 128, Session Laws of Hawaii 2002, requires all retirees or beneficiaries of the state retirement system who retire or become beneficiaries after January 1, 2003, to be paid their retirement payment on a monthly basis. All retirees or beneficiaries prior to that date would continue to be paid semimonthly. This measure would give retirees or beneficiaries who retire or become beneficiaries after January 1, 2003, the option of receiving their benefits on a monthly or semimonthly basis.

This measure would further allow nine-, ten-, and eleven-month employees, elective officers, and appointees of the Governor to designate their effective retirement date. Presently, the effective date of retirement for all members of the state retirement system is the first day of any month or the first or last day of December.

In keeping with the intent of Act 128, Session Laws of Hawaii 2002, to simplify the administration and processing of pension benefits, your Committee had amended this measure by deleting the provision giving retires or beneficiaries who retire or become beneficiaries after January 1, 2003, the option to receive pension benefits on a semimonthly basis.

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. 797, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 797, S.D. 2.