STAND. COM. REP. NO. 1261-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2873

S.D. 1

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2873, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose of this bill is to standardize employer contributions to the Employees' Retirement System (ERS) by:

(1) Setting employer contributions to ERS beginning with the 2005-2006 fiscal year at:

(a) 15.75 percent of compensation for police officers, firefighters, and corrections officers; and

(b) 13.75 percent of compensation for other employees;

and

(2) Eliminating the separate calculation of contributions for the Early Incentive Retirement Plan.

This bill also allows the State to retain amounts owed by a county for ERS contributions from Transient Accommodations Taxes collected.

The Department of Budget and Finance, County of Hawaii Finance Department, and Hawaii State Teachers Association submitted testimony in support of this measure. ERS supported this measure with amendments.

Your Committee has amended this bill by:

(1) Correcting a drafting error to clarify that the allocation of the sum of the normal cost and the accrued liability contribution for:

(a) Police officers, firefighters, and corrections officers; and

(b) State employees

in the same proportion as the aggregate annual compensation of each group employed by the State and by each county, will determine the contribution payable in each year to the pension accumulation fund by the State and by each county; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2873, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2873, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair