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 S.C.R. No. 76, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to express legislative opposition to the privatization of social security and to urge Hawaii's congressional delegation to reject proposed changes to the social security system.

The federal social security system provides essential benefits to over 195,000 people in Hawaii, including 139,300 retired workers, 16,090 widows and widowers, 16,790 disabled workers, and 13,630 children.

Your Committee finds that proposals to privatize social security would divert more than one-third of the wage contributions made by workers into private accounts. This diversion of funds would increase the national debt by almost $2 trillion over the next ten years and dramatically reduce benefits to many recipients in Hawaii.

This measure supports the current social security system and opposes any attempt to privatize the system or jeopardize the financial security and faith of the country's working class.

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 concurs with the intent and purpose of S.C.R. No. 76, S.D. 1, and recommends its adoption.