Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Legislative Management, to which was referred H.B. No. 403 entitled:

begs leave to report as follows:

The purpose of this bill is to prospectively change the benefit formula used to calculate the retirement benefits of legislative officers from 3.5 per cent to 2 per cent for each year of credited service in that capacity.

Legislative officers, who are the chief clerks, assistant chief clerks, sergeants at arms, and the assistant sergeants at arms of the legislature, currently receive retirement benefits calculated at the same rate as for legislators themselves. The legislature finds that this rate is inappropriate as it is higher than that received by state employees in hazardous positions such as firefighters and police officers. Legislative officers enjoy a higher salary than legislators and are not subject to being involuntarily retired by the electorate, so it is appropriate for them to be compensated at a reasonable rate closer to that received by regular state employees.

The change in rate would only apply prospectively to legislative officers hired after June 30, 2003. It therefore would not affect the retirement benefits of legislative officers currently in place or hired before June 30 of this year.

As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 403 and recommends that it pass Second Reading and be referred to the Committee on Labor and Public Employment.