STAND. COM. REP. NO. 856-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2073

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Higher Education and Labor and Public Employment, to which was referred S.B. No. 2073, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

beg leave to report as follows:

The purpose of this bill is to enable the University of Hawaii (UH) to implement an optional retirement system (ORS) for its employees by:

(1) Clarifying which employees are eligible for membership in the ORS;

(2) Requiring UH to offer at least three investment vendors for the ORS; and

(3) Specifying the State's contribution requirements to the ORS.

UH, the UH Professional Assembly, and AIG VALIC supported this bill. The Hawaii Government Employees Association and TIAA-CREF supported the intent of this bill. The Department of Budget and Finance opposed this bill. The Employees' Retirement System (ERS) submitted comments.

Your Committees have amended this bill by:

(1) Restricting ORS membership to new employees;

(2) Making UH employees who are members of collective bargaining unit (8) eligible for membership in the ORS;

(3) Making UH Board of Regents appointees who are eligible for membership in ERS eligible for membership in the ORS;

(4) Clarifying that any "lag" or "smoothing" arrangements in effect with regard to appropriations to ERS are to be taken into account by the State in making contributions to the ORS;

(5) Specifying that contributions for an employee participating in the ORS shall not exceed contributions made on behalf of the Governor to ERS;

(6) Specifying that new UH employees shall be automatically enrolled in ERS and shall be given 90 days to choose to enroll in the ORS; and

(7) Making technical, nonsubstantive changes for style and clarity.

As affirmed by the records of votes of the members of your Committees on Higher Education and Labor and Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2073, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2073, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Higher Education and Labor and Public Employment,

 

____________________________

MARCUS R. OSHIRO, Chair

____________________________

K. MARK TAKAI, Chair