STAND. COM. REP. NO. 1270-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 779

S.D. 2

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. 779, S.D. 2, 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 establish a new defined benefit hybrid contributory plan, class H membership, in the Employee's Retirement System (ERS).

The Department of Education, Department of Budget and Finance, Hawaii State Teachers Association, and a member of the Hawaii County Council testified in support of this bill. The Hawaii Government Employees Association supported the intent of this measure.

Your Committee has amended this bill as requested by the ERS, by among other things:

(1) Changing the dates for determining class H eligibility;

(2) Adding date restrictions on the conversion of previous credited service to class H service;

(3) Specifying the procedure by which the election to convert class C to class H credited services must be made;

(4) Changing date restrictions on filing claims for prior service credit that the member claims is not credited to the member;

(5) Adjusting the provisions defining membership in ERS classes A, B, C, and H to conform to the class H date amendments; and

(6) Changing the options available under the sections controlling election of mode of retirement allowance and retirement allowance options, with regard to:

(A) Retirees who elect a retirement allowance less than the maximum, whose beneficiary dies after the retiree retired but before the retiree's death;

(B) Retirees who die after filing an application to retire, but before the specified retirement date;

(C) Retirees that die within a year after the date of retirement.

Your Committee has also changed the effective date to July 1, 2010, to facilitate further discussion and made technical, nonsubstantive amendments for clarity 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. 779, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 779, S.D. 2, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair