STAND

STAND. COM. REP. NO. 558

Honolulu, Hawaii

, 2005

RE: H.B. No. 344

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Labor & Public Employment and Public Safety & Military Affairs, to which was referred H.B. No. 344 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

beg leave to report as follows:

The purpose of this bill is to allow a surviving spouse or surviving reciprocal beneficiary of a police officer, firefighter, deputy sheriff, or public safety officer to:

(1) Remarry, marry, or enter into a new reciprocal beneficiary relationship and continue to receive pension and other retirement benefits; and

(2) Apply to have terminated pensions or benefits reinstated.

The Police Department of the City and County of Honolulu, State of Hawaii Organization of Police Officers, and Concerns of Police Survivors-Hawaii Chapter testified in support of this measure. The Department of Public Safety supported the intent of this bill. The Department of Budget and Finance and Employees' Retirement System (ERS) commented on this measure.

Your Committees find that public safety personnel put their lives on the line on a daily basis to protect the general public. The spouses and reciprocal beneficiaries of individuals who die in the line of duty should not be punished by losing pension and other benefits if they remarry or enter into a new reciprocal beneficiary relationship.

However, your Committees also recognize that numerous individuals other than firefighters, police officers, public safety officers, and deputy sheriffs risk their lives on a daily basis or are employed in jobs that pose a danger to their safety and well-being. Accordingly, your Committees have amended this measure by:

(1) Clarifying that the reinstatement of terminated benefits is only applicable in the event of an accidental death;

(2) Specifying that reinstatement of benefits shall be effective as of the date the application is received by ERS;

(3) Applying the ability of a surviving spouse or reciprocal beneficiary to reinstate terminated pensions or benefits for accidental death to all public employees;

(4) Allowing a surviving spouse or surviving reciprocal beneficiary of any public employee to remarry, marry, or enter into a new reciprocal beneficiary relationship without the loss of pension and other retirement benefits;

(5) Requiring that benefit payments accruing between the effective date of reinstatement and the date reinstated benefits payments commence shall be paid without interest;

(6) Clarifying the time frame under which benefits shall be paid to a surviving spouse or beneficiary under the ERS' hybrid retirement plan;

(7) Inserting language applying the provision that allows a surviving spouse or surviving reciprocal beneficiary of all public employees to remarry, marry, or enter into a new reciprocal beneficiary relationship without the loss of pension and other retirement benefits to the ERS' hybrid retirement plan; and

(8) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Labor & Public Employment and Public Safety & Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 344, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 344, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Labor & Public Employment and Public Safety & Military Affairs,

____________________________ KEN ITO, Chair		____________________________ KIRK CALDWELL, Chair