Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1758 entitled:

begs leave to report as follows:

The purpose of this bill is to assist unemployed individuals receiving social security or railroad retirement pensions by providing that weekly unemployment benefits shall not be reduced as a result of the receipt of these pension payments.

The Hawaii State Teachers Association, AARP-Hawaii, and concerned individuals testified in support of this measure. The Department of Labor and Industrial Relations (DLIR) supported the intent of this measure.

Your Committee finds that many older individuals continue to work. These individuals find themselves at a disadvantage if they suddenly are unemployed since their unemployment insurance (UI) compensation is reduced because they are receiving a pension. Many of these workers are often unaware that these much-needed benefits may not be available to them if they are receiving a pension.

However, your Committee notes that, as pointed out by DLIR, this measure only applies to government pension plans and that individuals with private pension plans will continue to have their UI benefits reduced accordingly. By eliminating the reduction in UI benefits to also apply to private pension plans, a larger retiree population would benefit.

Accordingly, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1758, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1758, H.D. 1, and be referred to the Committee on Finance.