Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 632 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Trustees of the Employees' Retirement System to use the effect of the post retirement allowance or other mandatory fixed scheduled increase in benefits as an actuarial assumption in determining the value of available options.

Your Committee finds that recognition of the effect of the post retirement allowance will make calculation of benefit options more consistent with modern actuarial practices.

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 H.B. No. 632, and recommends that it pass Third Reading.