Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 2215, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to allow an employee who receives a special retirement incentive benefit to be reemployed by the State without forfeiture of benefits on a contract-for-service basis for a period not to exceed one year.

Testimony in support of this measure was submitted by the Department of Education and the Department of Human Resources Development.

Your Committee finds that Part V of Act 253, Session Laws of Hawaii 2000, allowed certain employees to qualify for a special retirement incentive benefit, which, if such benefit was received, precluded such employees from being reemployed by the State unless they forfeited all benefits derived from the special retirement incentive benefit prior to commencement of reemployment. Your Committee further finds that several departments and agencies within the State are experiencing a shortage of qualified personnel, due in part to the exodus of its current workforce. Your Committee determines that retirees possess invaluable knowledge, skills, and experience that should be utilized when possible. Therefore, your Committee finds that it is necessary and proper to allow these retired individuals to return to service on a contract basis, with certain limitations, in order to address current staffing issues and to provide for efficient and effective government operation.

Accordingly, your Committee has amended this measure by changing the effective date of the Act to July 1, 2050, to facilitate further discussion on the matter.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2215, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2215, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.