Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3018, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to enable certain members of the Employees' Retirement System who were disabled as police officers to receive a retirement allowance for those years of police service calculated at two and one-half per cent of the member's average final compensation.

Specifically, this measure modifies the benefit calculation for a member with at least ten years of credited service as a police officer, who is subsequently deemed permanently medically disqualified to be a police officer due to a service related disability, and who continues in employment in a class A or B position other than a police officer.

Your Committee finds that under current law a disabled police officer who continues in employment other than as a police officer will receive a retirement allowance calculated at two per cent of the member's average final compensation multiplied by the total number of years of credited service. The total years of credited service include the years as a police officer and the years in continued employment as other than a police officer.

Your Committee finds that this modified formula will result in the member receiving a retirement allowance calculated at two and one-half per cent of the member's average final compensation for the member's years of service as a police officer and two per cent of the member's average final compensation for the member's years of service in different positions.

Your Committee finds that this measure grants disabled police officers benefits currently granted to firefighters, and thereby grants police officers parity with firefighters.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

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. 3018, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3018, S.D. 2.